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March 26, 2020updated 23 Apr 2020 11:32am

Coronavirus spending cuts spread to wider industry – the numbers

Since Monday, several companies have announced cuts to capital expenditure in reaction to the coronavirus pandemic. Find out how much each has cut here.

By Matt Farmer

Since Monday, several oil and gas companies have announced cuts to capital expenditure in reaction to the coronavirus pandemic.

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The resulting low oil price, compounded by the ongoing trade war between Russia and Saudi Arabia, has threatened earnings for extraction companies of all sizes.

This is going to be a rough year for oil producers, as worldwide storage is expected to start filling up, causing further deflation in prices.

Below is a chart of the companies which have, so far, announced they will make spending cuts due to coronavirus.

Capital Expenditure Of which…
Original budget New budget Value cut Percentage cut Operating cost cut Exploration budget cut Suspended share buyback? If yes, saving how much in 2020? Break-even cash flow barrel price
Marathon Oil $2,400,000,000 $1,900,000,000 $500,000,000 21%
Royal Dutch Shell $25,000,000,000 <$20,000,000,000 $5,000,000,000 20% $3,000,000,000 Yes $1,000,000,000
Total SA <$15,000,000,000 $3,000,000,000 20% $800,000,000 Yes $1,450,000,000 $25
Equinor ~$10,500,000,000 $8,500,000,000 $1,500,000,000 20% $700,000,000 $400,000 Yes $675,000,000 $25
Chevron $20,000,000,000 $16,000,000,000 $4,000,000,000 20% $700,000,000 Yes $3,750,000,000
Phillips 66 $3,800,000,000 $3,100,000,000 $700,000,000 18% $500,000,000 Yes ~$2,800,000,000*
Santos $1,450,000,000 $900,000,000 $550,000,000 38% $50,000,000 $25
Talos Energy $170,000,000 $20,000,000 “mid-$20s”
Saudi Aramco ~$37,500,000,000 <~$27,500,000,000 ~$10,000,000,000 27%
Occidental Petroleum ~$5,300,000,000 ~$2,800,000,000 $2,500,000,000 47% $600,000,000 $7
Eni $8,800,000,000 $6,600,000,000 $2,200,000,000 25% $400,000,000 Yes $1,000,000,000
Cairn Energy $615,000,000 $475,000,000 $140,000,000 23% $50,000,000
Devon Energy $1,800,000,000 $1,000,000,000 $800,000,000 45%
Sinopec ~$20,700,000,000 ~$20,190,000,000 $510,000,000 2.5%
Polarcus $7,000,000 $6,500,000
BP $16,000,000,000 $12,000,000,000 $4,000,000,000 25% $2,500,000,000
Tullow Oil $500,000,000 $300,000,000 $200,000,000 40% <$12
Apache $2,400,000,000 $1,100,000,000 $1,300,000,000 54% $150,000,000
Petrofac $150,000,000 $90,000,000 $60,000,000 40% $100,000,000
ExxonMobil $33,000,000,000 ~$23,000,000,000 $10,000,000,000 30% “15%”
Jadestone Energy ~$150,000,000 ~$32,500,000 ~$127,500,000 80% $25
Running total: $47,264,500,000 *Note: Phillips buyback saving is based on 2019 spending minus 2020 spending to date

 


Visit our Covid-19 micro-site or our timeline to see how the coronavirus outbreak is affecting the offshore industry.

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COVID-19 has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities. Are you interested in actionable insights on the business challenges induced by the pandemic? GlobalData's cross-sector report analyzes the significance of this major disruptive theme across industry verticals. It provides side-by-side research of alternative datasets to present you with unique quantitative analysis of the effects of COVID-19 and how these differ across sectors. Additionally, it offers qualitative analysis of each sector and analyzes COVID-19’s impact on leading companies. Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today.
by GlobalData
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