Oil and gas producer Whitecap Resources Inc. on Aug. 26 cut its capital spending plan by 17% for the second half of 2019 citing global economic uncertainty.
The company, which now sees capex of C$250 million (US$188.32 million) for the period, said the reduction "is prudent" given the continuing trade wars between the United States and China, and recessionary concerns in 2020.
Whitecap now expects full-year 2019 capital expenditure at C$400 million, C$50 million lower than its previous forecast.
The company also praised the Alberta government's recent decision to extend crude oil curtailments by one year, along with raising the amount of a producer's output that is exempt from curtailment to 20,000 bbl/d from 10,000 bbl/d.
Last week, Alberta, Canada's main oil-producing province, said it was extending mandatory curtailments on crude production through 2020 due to uncertainty about when the expanded pipelines may come online.
The move would allow the company to allocate capital to its highest rate of return projects without the risk of the associated production being restricted, Whitecap said.
U.S. shale producer Continental Resources Inc. on Aug. 3 posted a bigger-than-expected second-quarter loss as the coronavirus crisis and related lockdowns pummeled demand.
Midland, Texas-based Concho Resources' net loss widened to $435 million, or $2.23 per share, in the second quarter ended June 30, from $97 million, or 48 cents per share, a year earlier.
Apache said it had now returned its curtailed volumes in the North Sea and Alpine High to production, along with a portion of shut in oil volumes elsewhere in the Permian Basin.