Major oil producers with operations around the world have cut their 2020 capital spending by about 24 per cent, or nearly $40 billion, data compiled by Reuters showed, following a slump in crude prices.
Brent crude prices have fallen nearly 46 per cent to about $24.48 a barrel, while U.S. crude has plunged 50 per cent to $21.19 per barrel since Saudi Arabia and Russia launched a price war earlier this month.
The world is also witnessing one of its biggest demand shocks, as travel curbs worldwide due to the outbreak of coronavirus have reduced oil consumption by millions of barrels per day.
Companies including Saudi Aramco, Shell and Chevron have slashed budgets by at least 20 per cent.
Saudi Aramco said it planned to cut capital spending for 2020 to between $25 billion and $30 billion, compared with $32.8 billion in 2019.
Exxon Mobil said it would make "significant" cuts to spending, while BP said it planned to reduce its capital and operations
Aker BP said it will cut its planned 2020 capital spending to $1.2 billion and exploration spending to $400 million, while capital spending will be "well below" $1 billion in 2021-2022.
BP plans to reduce capital and operational spending, which was about $15 billion last year. Chevron said it will trim spending and lower oil output, while DNO will cut its 2020 budget by 30 per cent ($300 million) and lower dividend for H1.
Energean will cut investments by nearly $200 million in Greece and Middle East. Meanwhile, Eni has cancelled a share buyback and said it would reconsider a buyback when Brent was at least $60 per barrel. EnQuest is cutting operating costs by 30 per cent to $375 million and investment will be lowered by $80 million.
Equinor has suspended its ongoing $5 billion share buyback programme and would cut total 2020 spending by around $3 billion, including capital spending reduction to $8.5 billion. ExxonMobil would make significant cuts to spending as well.
Shell lowered capital expenditure for 2020 by about $5 billion and suspended the next tranche of its share buyback plan.
Total said it would cut capital expenditure by over $3 billion, mainly in exploration. It will also target $800 million in 2020 operating cost savings, instead of the $300 million previously announced, and suspend its outstanding $1.5 billion share buyback.
Tullow Oil will cut its investment budget to $350 million and reduce exploration spending by almost half to $75 million.
Wintershall Dea will cut 2020 investment to $1.3-$1.7 billion and suspend its dividend until further notice.