Following a collapse in oil prices driven by a slump in demand because of coronavirus and a price war between Saudi Arabia and Russia, the world’s biggest oil and gas companies are slashing spending this year.
Cuts already announced by five major oil companies including Saudi Aramco and Royal Dutch Shell come to a combined $19 billion, or a drop of 18 percent from their initial spending plans of $106 billion.
While Chevron will slash its capex this year by $4 billion, Norway’s Equinor will cut capex by some $2 billion. Capital expenditure will be cut by Exxon Mobil Corp and BP but both haven’t given specific figures as yet.
Since January, oil prices have plunged 60 percent to below $30 a barrel. Brent crude LCOc1 on Wednesday was at $26.70 per barrel.
