Only three out of the top four international oil companies generate enough free cash flow to cover spending, including shareholder distributions, in a $60/barrel environment.
As a result, spending would need to be cut by $170 billion, or 37 percent year-on-year, at $60/barrel to keep net debt flat. The recent decline in global oil prices has prompted a number of oil and gas companies to cut 2015 spending plans.
Marathon Oil Corp. reported Wednesday that it would lower its 2015 capital expenditures by 20 percent due to the sharp decline in oil prices. Other companies such as ConocoPhillips also have adjusted their budgets to reflect lower oil prices.Much more at the link.
******************************
Norway Delays Arctic-Focused Oil Licensing Round Until 2015
Link to Reuters story at Rigzone.
Norway's government has delayed the launch of its Arctic-focused oil and gas licensing round until next year, the oil ministry said on Friday.
The delay comes after oil prices tumbled by 45 percent over the past six months, forcing energy companies to slash capital spending and cut back on exploration.
"Most exploration and production companies are now turning every stone to find ways to postpone investments or cut costs. The Ministry may have seen that these are challenging times for the industry and the timing for a new license round is a bit poor."
The ministry did not give a reason for the delay and did not specify when the licensing round would be launched in 2015. It will be the first time the government hands out blocks in the Arctic zone bordering Russia.
