More U.S. oil producers slash budgets amid price rout - Reuters:
Devon Energy, Apache Corp and Murphy Oil Corp on Thursday became the latest North American oil producers to slash capital spending and drilling plans as crude prices tumble and pressure on businesses intensifies.
Oil producers have been scaling back spending since the last crash in 2014, but the coronavirus outbreak and the launch this week of a price war between Saudi Arabia and Russia threatens to push U.S. crude to $30 a barrel and cripple U.S. players.
Apache on Thursday slashed its dividend by about 90%, cut its 2020 capital investment plan by more than 37% and reduced drilling activity in Egypt and the UK North Sea.
In a telling move, the company also plans to stop drilling in the Permian, America’s largest shale field that also has one of the lowest production costs.
Devon Energy, Apache Corp and Murphy Oil Corp on Thursday became the latest North American oil producers to slash capital spending and drilling plans as crude prices tumble and pressure on businesses intensifies.
Oil producers have been scaling back spending since the last crash in 2014, but the coronavirus outbreak and the launch this week of a price war between Saudi Arabia and Russia threatens to push U.S. crude to $30 a barrel and cripple U.S. players.
Apache on Thursday slashed its dividend by about 90%, cut its 2020 capital investment plan by more than 37% and reduced drilling activity in Egypt and the UK North Sea.
In a telling move, the company also plans to stop drilling in the Permian, America’s largest shale field that also has one of the lowest production costs.
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