US oil producer Apache Corp on Thursday said that its spending plans for 2021 would be flat or slightly lower compared to this year’s $1 billion spendings. Oil companies are slashing their spendings as the coronavirus pandemic continues to weigh on worldwide oil demand and prices. CEO John Christmann said that next year spending would be cut if US oil prices continued to be lower than $40/barrel.
Apache suspended drilling and fracking in the Permian Basin in April after oil prices plummeted. However, it added two fracking crews in the Permian Basin after US service costs fell. The crews will work on drilled wells but have not been fracked. Despite deploying new fracking crews, no sustained drilling program was planned in the field, Christmann said.
Instead, Apache will prioritize expenditure in its offshore discoveries in the northeastern coast of Suriname. Apache and JV partner Total are close to secure approval for two rigs for appraisal and exploration next year. Apache reported a net loss of $4 million for the July-September quarter of 2020, compared to $170 million net loss in the corresponding three-month period in 2019. Apache’s shares have been down 70% year to date.
