December 10, 2014 / 3:25 PM / 5 years ago

U.S. oil and gas companies cut capex and rig plans as crude dips

(Adds Goodrich Petroleum, Oasis Petroleum)
    Dec 10 (Reuters) - U.S. oil and gas producers are scaling back capital spending plans for 2015,
following a sharp decline in oil prices over the past six months.
    ConocoPhillips said on Monday it would cut its 2015 capital budget by 20 percent, or about
$3 billion, compared with this year, marking the biggest spending cut by a U.S. oil and gas company in
dollar terms. 
    Global crude prices have fallen by about 40 percent since June due to oversupply and OPEC's refusal
to cut its output ceiling.
    Global benchmark Brent crude fell more than a dollar to a new five-year low of $64.98 on
Wednesday as producers forecast lower demand for oil next year.
    While top U.S. oil producers such as Chevron Corp are yet to announce 2015 capital plans,
many companies have already pared their spending for next year. Some of them have already cut the
number of drilling rigs they will deploy next year. 
    Global oil and gas exploration projects worth more than $150 billion are likely to be put on hold
in 2015 as plunging oil prices render them uneconomic, according to data from Norwegian consultancy
Rystad Energy. 
    There are two companies that are still bullish, however.
    Continental Resources Inc, while slowing spending, has exited all its hedges and told
investors oil prices will soon recover. 
    And Hess Corp has boldly boosted its five-year production forecast. 
    Below is a list of budget cuts announced by U.S. exploration and production companies.
 Company    2015 capex  2015 vs   2015 capex  Output for         Rig Plans for 2015 (averaged)
                        2014      vs          quarter ended      
                        capex     previous    September          
 Apache     $4 billion  down 26   -           637,000 boepd      Reducing to 55-60 rigs in North
 Corp       in North    percent                                  America from 93 rigs as of Q3
            Ameica      in North                                 
 ConocoPhi  $13.5       Down 20   -           1.473 million      Expects 3 percent production growth in
 llips      billion     percent               boepd              2015, from continuing operations,
                                                                 excluding Libya
 Continent  $4.6 bln    Up 1      Down 12     182,335            Will not add rigs
 al                     percent   percent     barrels of oil     
 Resources                                    equivalent per     
 Inc                                          day (boepd)        
 Denbury    $550        Down 50   --          73,810 boepd       Not disclosed.  Expects relatively
 Resources  million     percent                                  flat production for 2015
 Emerald    $210 mln    Midpoint  Midpoint    351,755 boepd      Cut to 2.25 rigs in late Q1 2015 from
 Oil Inc    -$240 mln   down 10   down 38                        three now
            for         percent   percent                        
 Energy     $670 mln    Midpoint  Midpoint    58,600 boepd       Cut to two rigs by December 2015 from
 XXI        -$690 mln   down 14   down 17                        four now
 (Bermuda)              percent   percent                        
 Goodrich   $150        Midpoint  --          439,000 boepd      ---
 Petroleum  million-$2  down 50                                  
 Corp       00 million  percent                                  
 Halcon     $750        Down as   ---         43,554 boepd       Reducing drilling to 6 rigs from 11
 Resources  million to  much as                                  originally planned
 Corp       $800        20                                       
            million     percent                                  
 Oasis      $750        Midpoint  ---         45,873 boepd       Said it would reduce its rig count to
 Petroleum  million-$8  down                                     10 by the end of January and to six by
 Inc        50 million  42.8                                     end March. As of Sept. 30, the company
                        percent                                  was running 16 rigs.
 Rosetta    $950        Down 20   --          73,500 boepd       Reducing Eagle Ford drilling to 2-3
 Resources  million     percent                                  rigs from 4-5 now but ramping up in
 Inc                                                             Permian Basin to 4-6 rigs from four
 Sanchez    $850 mln -  Midpoint  Midpoint    38,613 boepd       Cut 2015 drilling program to 6.25 rigs
 Energy Co  $900 mln    up 0.6    down 24                        from 8 rigs
                        percent   percent                        
 Swift      $240 mln -  Midpoint  ----        2.99 million       Not disclosed
 Energy Co  $260 mln    down 36               barrels of oil     
                        percent               equivalent         
 (Reporting by Swetha Gopinath, Terry Wade, Kanika Sikka, Sneha Banerjee and Anannya Pramanick; Editing
by Feroze Jamal and Don Sebastian)
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