Oil and gas companies across the US have slashed their forecast expenditures in a survival-focused strategy.
That’s according to a recent study by GlobalData, that notes cost-cutting measures across companies to cushion the impact of the ongoing pandemic and the global oil price crisis have seen forecast expenditure fall by around $85 billion (£68.7bn) across more than 100 businesses.
The current market conditions have disabled expansions and new projects in both upstream and downstream projects such as liquefied natural gas facilities and shale drilling.
Daniel Rogers, Oil and Gas Analyst at GlobalData, said: “The uncertainty of the duration of the economic impact stemming from the spread of Covid-19, makes it difficult to gauge whether further cuts will be required. The magnitude of the current cuts are likely to have hard-hitting reverberations in the medium to longer term.
“Companies which seek to preserve financial stability in the immediate term risk longer-term implications for production, revenues and strategic targets.”