Sonny Clark
Diamond Member
- Banned
- #1
Chevron slashes spending as oil prices crash
Another day, another problem for Big Oil. Chevron (CVX) on Friday became the latest energy company to scale back its ambitions this year due to falling oil prices.
The second-largest U.S. oil company plans to spend $35 billion this year on projects to discover and pump crude. That's down 13% from 2014.
The news comes one day after Royal Dutch Shell (RDSA) said it was scaling back its planned capital investment by $15 billion over the next three years.
More bad news for Big Oil: A string of other energy companies have already announced plans to cut investments and jobs due to the slump in oil prices.
BHP Billiton (BBL) announced this month it was cutting its U.S. onshore rig operations by about 40% this year. Schlumberger (SLB) recently announced plans to lay off 9,000 workers.
French energy giant Total (TOT) is also reportedly slashing capital spending by 10% this year.
Meanwhile, there are early signs that U.S. drilling activity is starting to cool down.
The number of U.S. oil rigs actively pumping oil has decreased for seven straight weeks, according to Baker Hughes. The rig count fell to 1,317 as of January 23, down 18% from the record highs of early October back when oil was still at $86 a barrel.
Chevron slashes spending as oil prices crash - Jan. 30 2015
Another day, another problem for Big Oil. Chevron (CVX) on Friday became the latest energy company to scale back its ambitions this year due to falling oil prices.
The second-largest U.S. oil company plans to spend $35 billion this year on projects to discover and pump crude. That's down 13% from 2014.
The news comes one day after Royal Dutch Shell (RDSA) said it was scaling back its planned capital investment by $15 billion over the next three years.
More bad news for Big Oil: A string of other energy companies have already announced plans to cut investments and jobs due to the slump in oil prices.
BHP Billiton (BBL) announced this month it was cutting its U.S. onshore rig operations by about 40% this year. Schlumberger (SLB) recently announced plans to lay off 9,000 workers.
French energy giant Total (TOT) is also reportedly slashing capital spending by 10% this year.
Meanwhile, there are early signs that U.S. drilling activity is starting to cool down.
The number of U.S. oil rigs actively pumping oil has decreased for seven straight weeks, according to Baker Hughes. The rig count fell to 1,317 as of January 23, down 18% from the record highs of early October back when oil was still at $86 a barrel.
Chevron slashes spending as oil prices crash - Jan. 30 2015