Major oil companies cut spending in 2020 by 20% after falling prices | latest news

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The world’s largest oil and gas companies are slashing spending this year after the collapse in oil prices caused by falling demand due to the Corona virus and a price war between the largest exporters Saudi Arabia and Russia.

The cuts, already announced by five major oil companies, including Saudi Aramco and Royal Dutch Shell, together account for a 20% drop in their initial spending plans.

Norwegian Ecinor said it will cut capital spending by about two billion dollars, while Chevron said it will cut its capital spending this year by four billion dollars.

Other companies, such as US giant Exxon Mobil and Britain’s BP, say they will cut capital spending but have not yet released figures.

Brazilian oil company Petrobras said it will cut production in the short term, defer payment of dividends and reduce its investment plan for 2020, among other measures aimed at reducing costs in the face of the Corona virus pandemic.

The debt of Chevron, Total, BP, Exxon Mobil and Royal Dutch Shell combined reached $ 231 billion at the end of 2019, which is just under $ 235 billion recorded in 2016 when oil prices also fell to less than $ 30 a barrel.





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