US integrated energy firm ConocoPhillips intends to continue its capital expenditure at same level for the following three years, in spite of slight rise in oil prices.
Reuters quoted ConocoPhillips chief executive officer Ryan Lance as saying that the firm "should hold (investment) flat for three years".
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The firm had slashed its capital spending for 2015 by $2bn to $11.5bn this January.
Sliding demand for crude in economies like China and oversupply concerns have been affecting the global supply and demand for crude oil.
The current prices for crude have dropped nearly 50%, after reaching its June 2014 peak of $115 per barrel.
Besides slashing down its capital commitments for the year, the firm is also reducing its rig count for fields in the lower 48 states in the country.
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By GlobalDataConocoPhillips is also likely to have less production at its shale fields, including the Permian in West Texas and the Bakken in North Dakota, in the latter half of the year. Total yearly output from the sites is still expected to see a 2% to 3% growth.
The firm is presently is focusing on the Eagle Ford shale in Texas and North Dakota’s Bakken shale. It will, however, cut down its expenses for major projects, even though, many of those are nearing completion and is likely to sell its noncore oil and gas producing estates in US as well.
The firm is not a first to lower its expenditure for production and exploration projects. Other major companies, including Australian firm BHP Billiton, have also cut down their capital investments for energy operations.
BHP Billiton has recently reduced its onshore US drilling and development expenditure to $1.5bn in the 2016 financial year from $3.4bn in 2015.
