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Oil Crash Wipes Out $31 Billion From Industry’s Investment Plans

Oil Crash Wipes Out $31 Billion From Industry’s Investment Plans

(Bloomberg) -- The global oil and gas industry has slashed at least $31 billion from investment budgets after crude’s epic price crash this month, and more cuts are likely to come.

Producers are quickly switching gears to survive a flood of oil coming into the market as Saudi Arabia and Russia open the spigots to fight for global market share. Meanwhile, the Covid-19 pandemic is having a devastating impact on demand.

Shale explorers in the U.S. and oil-sands producers in Canada -- which were already in dire straits before the price collapse -- have been the quickest to announce belt-tightening efforts.

But giants like Saudi Arabian Oil Co., France’s Total SA and Russia’s Lukoil PJSC have also joined in, while Exxon Mobil Corp. and BP Plc have hinted that reductions in capital expenditures are likely to come. In Asia, Latin America and other Middle East countries, where most oil companies are state-run, it’s not yet so clear how producers will adapt to cope with the downturn.

Here’s a table with spending cuts that have been announced so far:

CompanyCut (US$ millions)

U.S.

Diamond1,200
Hess800
EOG2,000
EQT75
Earthstone Energy110
Whiting185
Goodrich15
Marathon Oil500
Occidental1,700
Apache650
Devon500
Murphy500
PDC230
Penn Virginia89
Ovintiv300
Noble550
QEP300
Concho700
Kosmos150
Callon263
Pioneer1,400
W&T55
Cimarex585
Oneok490
Parsely700
Noble Midstream73
EnLink Midstream124
ConocoPhillips700
WPX Energy400
Continental Resources1,450
Targa Resources400

Canada

Canadian Natural Resources753
MEG Energy34
Crescent Point276
Vermillion41
ARC Resources138
Enerplus149
Seven Generations137
Baytex182
Whitecap107
Birchcliff Energy46
NuVista52
Paramount128
Kelt57
Tamarack Valley52
Pipestone Energy62
Gran Tierra98
Bonterra Energy30
Cardinal Energy24
Gear Energy26
Pembina Pipeline678
Inter Pipeline58
Enerflex82
Total Energy Services9

Australia

Oil Search116

Europe and Middle East

Saudi Aramco5,300
Total3,300
Lukoil1,500
Wintershall DEA337.5
Tullow150

Grand Total

31,115

Note: Conversions from local currencies into U.S. dollars as of March 19

©2020 Bloomberg L.P.