Operators Flag Factors Shaping Production Cuts

摘要

European operators have given a glimpse of the scope and scale of their production curtailments for the second quarter of 2020, aimed at easing the strain on storage infrastructure as they await a rebound in demand. Precisely where the output cuts will come from is clouded by the current oil market turmoil. But recent first-quarter earnings calls suggest companies are basing their decisions on a few key factors: ensuring compliance with Opec-plus government-mandated cuts and contractual obligations, for economic reasons, and taking into account technical and logistical issues.