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Oil Giants Pledge Even Deeper Spending Cuts Amid Prolonged Slump

By on 11 Dec 2015 in news, notable posts

(Some of the biggest oil explorers in the Western Hemisphere are cutting budgets yet again to conserve cash as a plunge in energy markets shows no signs of abating.

ConocoPhillips will reduce capital spending by 25 percent next year to $7.7 billion to protect the highest dividend yield among major U.S. oil producers, the Houston-based company said Thursday. That came a day after Chevron Corp. disclosed a 2016 budget 24 percent smaller than this year’s plan. Together, the cuts by both companies totaled $10.9 billion, enough to rent 10 deepwater drilling rigs every day for more than half a decade.

Petroleo Brasileiro SA, battered by a corruption probe and the market collapse that have led the oil industry’s most ambitious investment plan to unravel, probably will scale back its $119 billion, five-year capital budget as soon as next month, Chief Executive Officer Aldemir Bendine said in an interview. Petrobras, as the Brazilian state-controlled company is known, will start 2016 with $20 billion in cash, he said. The company currently has a $128 billion debt load.

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