Spending by major oil companies is less than 22% in 2020

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The world’s largest oil and gas companies are slashing spending this year in the wake of a collapse in oil prices caused by falling demand due to the Corona virus crisis and a price war between the world’s two largest crude exporters Saudi Arabia and Russia.
Nine major oil companies, including Saudi Aramco, Exxon Mobil and Royal Dutch Shell, announced cuts of $ 38 billion, down 22% from their initial spending plans of $ 175 billion.
And yesterday, “Exxon” reduced its budget for 2020 by ten billion dollars to 23 billion dollars.
BP has reduced its spending plan for 2020 by 25 percent, and will cut production from its oil and shale gas business in the United States.
If the crisis persists for a long time, investors said, the spending cuts announced by the major oil companies may not be sufficient to maintain their dividends without leading to an increase in debt levels. (Reuters)





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