Plunging Prices Force Oil Majors To Cut Billions In Spending – 26 January 2015

RT logoThe world’s leading oil companies are reported to be planning a $28 billion cut in capital spending by 2017 to keep debt at a sustainable level at a time when oil prices continue to fall.

Investment in exploration and development of oil and gas fields could drop by 20 percent by 2017 compared to last year, say analysts at Morgan Stanley as quoted by the FT.

The possibility is growing as a number of the largest oil companies are yet to report on the sharp fall in earnings.

Shares in the largest US and European companies ExxonMobil, Chevron, Shell, Total, BP and ConocoPhillips have dropped between 4 and 24 percent since crude prices fell over 50 percent from $115 a barrel in June 2014.

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