Operators in Permian Basin’s energy industry continue to announce reductions in capital budgets for 2020. They include:
Phillips 66 said March 24 it will defer its Red Oak pipeline as part of reducing its 2020 capital budget by $700 million to $3.1 billion. With Plains All American Pipeline, Phillips 66 formed Red Oak Pipeline to build the system to transport crude oil from Cushing, Okla., and Permian Basin to Corpus Christi, Ingleside, Houston and Beaumont. The project will be delayed.
Ovintiv said March 12 it plans to reduce 2020Q2 capital investments by $300 million. The Denver-based company is immediately dropping 10 operated drilling rigs, and it will drop an additional 6 operated rigs in May. The company’s announcement said, “Following these rig count reductions, Ovintiv will have 3 operated rigs in Permian, 2 in Anadarko and 2 in Montney.”
Shell, Dutch oil major, said it is cutting $5 billion from its 2020 capital expenditures to leave its budget at $20 million for global projects. Houston Chronicle said Shell filed for 127 drilling permits in Texas in 2019.
Total, French oil major, said it is cutting $3 billion or 20 percent from its 2020 capital spending budget. Houston Chronicle said Total filed for 6 drilling permits in Texas in 2019.
