Wednesday, 25 March 2020

Oil majors slash 2020 spending 18% after prices slump - Reuters

Oil majors slash 2020 spending 18% after prices slump - Reuters:

The world’s biggest oil and gas companies are slashing spending this year following a collapse in oil prices driven by a slump in demand because of coronavirus and a price war between the top exporters Saudi Arabia and Russia.

Cuts already announced by five major oil companies including Saudi Aramco 2222.SE and Royal Dutch Shell (RDSa.L) come to a combined $19 billion, or a drop of 18% from their initial spending plans of $106 billion.

Norway’s Equinor (EQNR.OL) said on Wednesday it would cut capital expenditure, or capex, by some $2 billion while Chevron (CVX.N) said on Tuesday it would slash its capex this year by $4 billion.

Others such as U.S. giant Exxon Mobil Corp (XOM.N) and Britain’s BP (BP.L) have said they will cut capital expenditure but haven’t given specific figures as yet.


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