Numerous US and Canadian oil companies have said they are reducing output in 2020. However, so far only three companies account for more than half of the cuts. Those companies are Chevron Corp, ConocoPhillips and Occidental Petroleum Corp.
As a result of the worldwide slump in demand caused by coronavirus lockdowns, oil and gas producers are deep into crisis mode. Fuel demand plunges more than 30 percent.
While OPEC+ will cut 9.7 million bpd in production beginning in May, other nations including the US and Canada could reduce output by as much as 10 million bpd. However, those production cuts will come over time as a result of weak prices.
On Thursday, ConocoPhillips announced the biggest drop so far. From earlier forecasts, the company said it would slash oil output by 200,000 boepd. Chevron slashed its output in the Permian basin by 20 percent or 125,000 bpd. Occidental slashed 2020 output by 85,000 boepd. The three companies (Chevron, ConocoPhillips and Occidental) account for 410,000 boepd of the reductions announced by Canadian and US companies.
