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