Oil Companies Continue to Cut Capital Spending, Other Energy Firms Cancel Projects

Oil giant Royal Dutch Shell is slashing its spending outlook by $15 billion over the next 3 years, due to the severe dip in oil prices. The company also missed profit forecasts for the fourth quarter of 2014 by more than 20%.

ConocoPhillips, too, has trimmed its capital spending plan for 2015 again.The company took another $2 billion from its budget, now making cuts total $11.5 billion.

Oil prices are also causing companies to cancel projects. Sasol Ltd., a South African energy company, announced today it was shelving a natural gas project on Louisiana’s Gulf Coast.

Recent profit reports were also disappointing for automaker Ford, which said 2014 net income fell 56%.


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First Voice

  1. Andrew Cox:

    No surprises here. It looks like the industry will slash and burn just like in the 1990s. There is another way though . See our blog on the Oil industry @ http://www.iiaps.org/blog

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