US crude output to grow despite capex reduction

摘要

The drop in oil prices in the second half of the year is beginning to impact spending plans for 2015, suggesting that the record global levels of exploration and production expenditure of recent years will not be repeated in 2015. In the US, where E&P spending has been most bouyant, several oil companies have telegraphed reduced spending expectations for 2015. Investment bank Wunderlich Securities said it found "an interesting pattern" in comparing 2014 and projected 2015 capex before and after third-quarter 2014 earnings calls. "Collectively, 2014 capex was reduced by $1.3 billion and expected capex for 2015 fell by $6.8 billion" for 50 companies surveyed, Wunderlich said. But since only 15 of the operators have formally updated their 2015 capex, "we suspect there could be further reduction even if OPEC agrees on a production cut."