According to Reuters calculations, in the second quarter of 2020, the world’s top oil and gas producers have set to cut output by more than 12% to the lowest level in at least 17 years.
Demand for energy products has crashed due to the coronavirus pandemic, leading to supply glut in the market which brings the crude prices to collapse to the lowest levels in more than two decades.
Four of the world’s major oil and gas producers have prepared plans to deeply slash productions from a variety of locations, from Iraq to the US shale basins.
BP will cut US shale oil output by 14% year-on-year to 70,000 boepd this year, and output from other countries will be cut by an unprecedented 23%.
Royal Dutch Shell said that lack of storage commonly forced the company to cut output. ExxonMobil and Chevron plan cuts of a total 800,000 bpd.
