Energy companies have announced big cuts in exploration budgets in response to the Covid-19 global pandemic.
Energy companies have announced big cuts in exploration budgets in response to the Covid-19 global pandemic.
ExxonMobil is cutting planned 2020 investment from $33 billion to $23 billion, with a delay in the development of the Payara discoveries offshore Guyana of up to 12 months.
Shell has announced a reduction of underlying operating costs by $3-4 billion per annum over the next 12 months compared to 2019 levels.
Cash capital expenditure of $20 billion is down from planned spending of $25 billion.
Chevron is reducing its guidance for 2020 organic capital and exploratory spending by 20% to $16 billion. Reductions include $2 billion in upstream unconventionals, primarily in the Permian Basin; $700 million in upstream projects and exploration; and $500 million in upstream base business.
Cash capital and exploratory expenditures are expected to decrease by $3.3 billion to $10.5 billion in 2020.
BP expects 2020 organic capital spending to be around $12 billion, around 25% below its prior full-year guidance. Upstream production is expected to be reduced by around 70,000 barrels equivalent a day.
The company expects to achieve around $2.5 billion of cash cost savings by the end of 2021, compared with 2019.
Equinor will cut organic capex for 2020 from $10-11 billion to around $8.5 billion. Exploration activity will be cut from around $1.4 billion to $1 billion. Operating costs will be cut by $700 million.
Total has announced capex cuts of more than $3 billion (more than 20%), reducing 2020 net investments to less than $15 billion. The company will also make $800 million of savings on operating costs compared to 2019, instead of the $300 million previously announced.
Eni will reduce Capex in 2020 by around $2.2 billion, equal to 25% of the total capex planned, and opex by around $437 million. In 2021, Eni expects a capex reduction of around $2.73 to 3.28 billion.
Production in 2020 is expected between 1.8 and 1.84 million barrels of oil equivalent per day, and it will remain unchanged in the following year.
