• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 11 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 5 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 12 hours "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours An Indian Opinion on What is Going on in China
  • 2 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 17 hours Can Technology Keep Coal Plants Alive and Well?
  • 2 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 4 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
  • 10 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 14 hours Storage of gas cylinders
  • 4 days Nord Stream - US/German consultations
Forex And Commodity Trading Comes Under Fire In China

Forex And Commodity Trading Comes Under Fire In China

China's Industrial and Commercial Bank…

Canada’s Husky Energy Slashes Spending As Low Oil Prices Bite

Canada’s Husky Energy is the latest North American oil firm to slash spending amid collapsing oil prices, saying that it is reducing its capital budget by US$648 million (C$900 million) for 2020 and cutting or shutting in production where it is cash negative.

In light of the challenging market conditions—with oil prices down 30 percent from last Friday after the breakup of the OPEC+ deal and the relentless spread of the coronavirus outbreak—Husky Energy is cutting its capital spending to US$1.66 billion-US$1.8 billion (C$2.3 billion-C$2.5 billion) from previous guidance of US$2.3 billion-US$2.45 billion (C$3.2 billion-C$3.4 billion). The company also lowered its production guidance to 275,000 bpd–300,000 bpd from 295,000 bpd-310,000 bpd expected earlier.

Husky Energy is also suspending investment in resource plays and conventional heavy oil projects in Western Canada and halting drilling of sustaining pads at all thermal operations.

Husky Energy’s budget and production reductions came after Cenovus Energy said as early as on Monday that it is slashing its 2020 capital spending by around 32 percent in order to maintain the strength of its balance sheet in the price collapse.

“Being price takers has made us uniquely vulnerable to dramatic shifts in the oil price and what we’re seeing today will have immediate negative impacts on Canada’s economy,” Tim McMillan, President and CEO at the Canadian Association of Petroleum Producers (CAPP), said on Monday.  

Drillers in Canada and the United States are turning into the first collateral victim of the Saudi-Russia oil price war as the former allies vow to turn on the taps in April and flood an already oversupplied market reeling from depressed demand amid the Covid-19 outbreak.

The collapse in oil prices is forcing U.S. oil producers to slash capital spending and dividends as many of their operations are unsustainable and deep in the red at $30 a barrel WTI Crude.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News