Industry and Energy

Home page

Industry and Energy

Oil majors slash 2020 spending by 20% after prices slump

01 April 2020 16:35 (UTC +04:00)

The world’s biggest oil and gas companies are cutting spending this year, APA reports citing Reuters.

Cuts already announced by eight major oil companies, including Saudi Aramco and Royal Dutch Shell, come to a combined $28 billion, or a drop of 20% from their initial spending plans of $142 billion.

BP cut its 2020 spending plan by 25% and will reduce output from its U.S. shale oil and gas business, it said on Wednesday.

Exxon Mobil Corp said it would cut capital expenditure but has not given specific figures as yet.

Brazilian oil company Petrobras said it was dialling back short-term production, delaying a dividend payment and trimming its 2020 investment plan, among other measures aimed at reducing costs in the face of the coronavirus pandemic.

Oil prices have slumped 65% since January to around $25 a barrel.