Devon Energy Corp., Apache Corp. and Murphy Oil Corp. on March 12 became the latest to join a list of oil and gas producers to slash their spending.
On March 9, oil had its biggest one-day drop since 1991 with U.S. crude futures sinking as low as $27.34 a barrel. Oil and gas companies across North America have responded to the plunge in oil prices by pulling back on drilling plans despite already scaling back spending for the year.
North American oil and gas producers have slashed their capital spending by about 30% on average after crude prices crashed earlier this week, according to data compiled by Reuters on March 12.
| North American Producer’s Spending Reductions | |||
|---|---|---|---|
| Company | 2020 Revised Capex (Midpoint; in $MM) |
2020 Previous Capex (Midpoint; in $MM) |
% change |
| Occidental Petroleum Corp. | $3,600 | $5,300 | -32.08% |
| Marathon Oil Corp. | $1,900 | $2,400 | -20.83% |
| Cenovus Energy Inc. | $690 | $1,020 | -32.35% |
| Apache Corp. | $1,100 | $1,750 | -37.14% |
| Murphy Oil Corp. | $950 | $1,450 | -34.48% |
| Meg Energy Corp. | $145 | $182 | -20.33% |
| Birchcliff Energy Ltd. | $207 | $254 | -18.5% |
| TransGlobe Energy Corp. | $7.1 | $37.1 | -80.86% |
| PDC Energy Inc. | $814 | $1,050 | -22.48% |
| Talos Energy Inc. | $407.5 | $532.5 | -23.47% |
| Gear Energy Ltd. | $13 | $50 | -74% |
| Devon Energy Corp. | $1,300 | $1,800 | -27.78% |
| Total | $11,133.6 | $15,825.6 | -29.65% |
Other producers that announced plans to reduce their budget but haven’t disclosed further details include California Resources Corp. plus Diamondback Energy Inc., Parsley Energy Inc., Ring Energy Inc. and Matador Resources Co. in the Permian Basin, and Ovintiv Inc., which has a multibasin portfolio. In North Louisiana, Riviera Resources Inc. also said it was delaying plans to start drilling in the Ruston Field in response to the plunge in oil prices.
Additionally, San Ramon, Calif.-based oil major Chevron Corp. said it was looking to reduce spending though did not provide details on specifics at this time.
As of 3 p.m. CT on March 12, West Texas Intermediate Texas crude was at $31.50.
Reuters contributed to this report.
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