Deep Cost Cuts Needed to Hold the Line on Debt

摘要

Global oil and gas companies will have to cut costs by $170 billion, or 37%, this year to maintain debt at last year's levels, says consultancy Wood Mackenzie. The conclusion is based on a $60 per barrel oil price assumption. Cuts will have to be made to investments in new projects, exploration budgets and operating expenditure. Distributions to shareholders may even feel the pinch, the report states, although companies will do everything in their power to avoid investors' wrath on this front.