ConocoPhillips on Thursday said it would slash capital spending and crude oil production by 30% for this year, marking the largest reduction among US major shale producers to cope with the crash in oil prices due to the coronavirus. US oil and gas producers have cut capex, laid off thousands of jobs, and shut-in wells as energy demand dwindles amid measures to combat the coronavirus pandemic.
According to the company’s statement, it will cut the production target for this year by 225,000 bpd. Of which, 125,000 bpd will come from ConocoPhillips’ operations in mainland US and about 100,000 bpd from its Canadian operations. Meanwhile, its2020 spending budget was cut by 35% to $4.3 billion from its original $6.6 billion plan.
Previously, some US producers such as Chevron, Occidental, Diamondback, ExxonMobil, etc. have slashed their production and spending plan for this year due to low prices and demand. Reuters reported that US and Canadian producers had cut spending by more than $37 billion, or about 30% of their initial plans.
ConocoPhillips said it would maintain production in Alaska. It will also halt all well completions and hydraulic fracturing in Texas and North Dakota this year. On Thursday, ConocoPhillips shares dropped 3.5% to $31.07. Its shares have lost by more than 50% so far in 2020.
