Oil and gas companies were boosted over the first nine months of the year by a recovery in crude prices as years of cost cuts started to kick in. But the drop in oil prices LCOc1 from more than $85 a barrel in early October to around $60 this week has revived concerns over their long-term recovery.
“We have no plans to take down any projects because I don’t see a change in the mid-to-long-term outlook,” Equinor Chief Executive Eldar Saetre told Reuters on the sidelines of a carbon conference in Edinburgh.
He added that Equinor’s portfolio could generate cash at oil prices below $50 a barrel. In October Equinor cut its spending for 2018 to $10 billion from $11 billion through cost cuts.
BP chief Bob Dudley was similarly resolute.
“We’re planning the future of BP and always have through the cycle on $50 to $60 (a barrel), so it (the oil price) is not changing our capital investment plan. That hasn’t changed at all,” he told reporters in Edinburgh.
However, Dudley said the company might reprioritise some projects as a results of the slump in crude prices. BP said it would spend between $15 billion and $17 billion next year.
Reporting By Ron Bousso and Shadia Nasralla; Editing by David Goodman