How to cope with $30 oil: producers ready more cuts - Reuters

How to cope with $30 oil: producers ready more cuts - Reuters:

Already hard-pressed oil producers, including global major Chevron, are contemplating a new round of spending and drilling cuts on Tuesday as they try to quell concerns about profitability with crude prices now almost half of what they were in January.

A price war between Saudi Arabia and Russia pushed oil prices down about a third lower on Monday, sending another shockwave through an industry that has been scaling back aggressively for years.

Chevron Corp, the second largest U.S. producer, was the biggest high-profile company from a slew of corporate statements on Tuesday, reiterating that it was looking at ways to cut spending.

A source close to the company said that while it would not be easy to cut capital spending in an already tight budget, bosses would probably look to cut rigs in the Permian basin in Texas, home to most of North America’s oil and gas production.