International
ConocoPhillips to sharply cut oil production as low prices hit earnings
Published on : 2020-05-01
The world’s largest independent oil and gas producer plans to accelerate output cuts by 40,000 barrels per day (bpd) in May and bring its reduction in North America by June to 460,000 bpd, the largest cut by any producer.
“We’d be curtailing as much as we could right now,” Chief Executive Ryan Lance said on a call with analysts, noting decades-low prices. Industry production cuts are “going to drive supply down to match inventory levels and what the refineries can take,” he said.
The June figure includes a 100,000 bpd reduction in the company’s Alaska oil and gas production. ConocoPhillips is one of the state’s largest oil producers, with 2019 output of 217,000 bpd.
Crude prices have crashed in the past six weeks as the coronavirus outbreak hit demand during a Russia-Saudi price war, leading to a global oil glut and prompting higher cost U.S. producers to sharply curb output.
(Source:Reuters)
