GlobalData, a data and analysis agency, said that in order to protect the balance sheet, maintain shareholder dividends and retain cash, oil and gas companies have entered a survival mode and reduced forecast expenditures. Our company provides full-size coupling.
GlobalData's oil and gas analyst Daniel Rogers said: "The industry's recent pessimistic short-term outlook has forced many companies to reassess their forward spending. To date, more than 100 companies in the industry have been cut by more than $ 85 billion. These measures It is to overcome unprecedented market uncertainty, and in the short term, there may be many companies to follow suit. "
The integrated oil and gas company reported the largest capital expenditure reduction in 2020. The upstream business, especially the US shale drilling business, the global exploration budget, and unapproved development projects have all experienced significant capital cuts.
Rogers continued: "The severity of investment cuts in the industry varies across the value chain, and companies that focus on midstream usually have fewer original budget cuts. This may be because midstream industries are participants during periods of volatile oil (Pipeline operators in particular) provide relatively high protection because cash flow is less dependent on commodity prices and more dependent on supply. "
Although not all members of the Oilfield Services Group have announced the exact revision of capital expenditure in 2020, its importance is obvious. The group has the highest average reduction percentage, although at a lower volume. When entering 2020, the cost of services has been lowered by the previous downturn of 2014/2015, and the latest development has brought another impact to the already struggling market segment. Globally, the decline in drilling, exploration and development spending will have an impact on oilfield service providers.
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