10 oil companies, announced a drop in spending after the fall in oil prices

In March, the oil market was in a difficult situation: OPEC+ 6 Mar are unable to agree on a deal to reduce oil production, which led to a sharp drop in prices for raw materials. So, Brent fell by almost half, going from nearly $50 per barrel in the beginning of the month it drops to $25, this is the lowest since 2003.

oil Prices are forcing the most vulnerable oil companies to reconsider investment plans, rapidly reducing costs.

Below we will discuss the oil companies decided to cut costs in response to falling oil prices.

1.EOG Resources

a Texas oil company EOG Resources announced a reduction in capital spending in 2020 by $2 billion or 31%. The company’s decision was influenced by two factors: the spread of coronavirus and a price war by Saudi Arabia, which has an impact on American companies.

In EOG stated that the company intends to reduce expenses in all areas. The company will focus on drilling in the Western part of Texas and new Mexico, as well as on the field Eagle Ford Shale in South Texas.

currently, the company plans to spend $4.3 -$4.7 billion on capital expenditures in 2020. The company estimates, production in 2020 will be 446 000- 466 000 barrels of oil per day.

2. Pioneer Natural Resources

This is another Texas company, which reduces their budget for 2020. The reduction is about 45%, which is also associated with the fall in oil prices and the General atmosphere of uncertainty in macroeconomics.

After spending cuts, the budget of the company for the year 2020 of $1.6-1.8 billion, compared with $3.0-3.3 billion, as previously planned.

In particular, the company plans to reduce the cost of water infrastructure to almost $ 100 million, compared with 125 million dollars that was previously planned.

3. Saudi Aramco

Saudi kompany Saudi Aramco cuts costs amid price war, unleashed by the very same Saudi Arabia.

Capital expenditures will range from $25 to $30 billion in 2020, compared with $35-$40 billion as it was planned earlier. In addition, the company is revising its plans for the next year.

the Price war waged by Saudi Arabia, forcing the company to increase the supply of raw materials, despite drop in oil prices.

4. Occidental Petroleum

the American company Occidental Petroleum also reduces costs. First of all, the company announced a reduction in quarterly payouts to investors for the first time in 30 years. This decision was taken on the background of falling oil prices.

Company located in Houston, Texas, also reduced the dividend to shareholders to 11 cents from 79 cents. In addition, the company is reducing capital spending in 2020 by almost a third – from $5.2 — $5.4 billion to $3.5 — $3.7 billion.

5. Exxon Mobil

on Monday, Exxon Mobil also announced plans for significant spending cuts amid falling oil prices, and in connection with the epidemic of coronavirus.

the company’s Shares reached a 17-year low. Exxon shares on Monday fell to $34.49. This level of stock prices, the company has achieved in recent times in 2003.

6. Marathon Oil

Tuesday, the American company Marathon Oil Corp said it plans to cut drilling costs by at least 30% compared to previously planned levels. Shares of Marathon Oil on Monday fell by 47%, but then rose to 32%.

7. Equinor

the Norwegian oil company Equinor is reviewing its capital and operating expenses amid falling oil prices and the epidemic of coronavirus.

In February the company planned capital expenditures of $10 — $11 billion in 2020 and 2021. In 2022-2023, the company plans to raise spending to $12 billion, which would increase costs and invest in renewable energy projects.

the company announced that it plans to cut “non-critical” activities on the shelf.

8. Eni

the Italian company Eni also followed the example of their competitors and announced the reduction of costs as a result of falling oil prices, as well as in the epidemic of the coronavirus, which has had a significant impact on the economic situation in Italy.

9. LUKOIL

the head of the company Vagit Alekperov announced that LUKOIL plans to reduce investment and operating costs. According to him, overall, spending cuts amounted to $ 1.5 billion. While Alekperov stressed that these reductions do not apply to projects related to the provision of exploration and production of oil.

10. Chevron

Chevron is another company that announced the spending cuts in the short term amid falling oil prices.

This American company became the first company, which confirmed the reassessment costs amid falling prices.

the company said that we are talking about reducing capital expenditures in the short term, however, the company plans to maintain revenue in the long term.