Efforts to tackle the corona virus are both delaying projects due to movement restrictions,and leading to sharp reductions in capex budgets for this year,which will see many other projects delayed or even cancelled.Companies most affected are upstream independents in the US onshore and international offshore sectors,but the slowdown is also apparent among majors and some national oil companies(NOCs).The sharp fall in oil prices and huge hit to demand from the corona virus is leading oil and gas companies around the world to prioritise short-term cashflow and cut costs and investment.By mid-March,the upstream sector had already announced capex cuts of more than $25 bn for 2020,and this could rise further over coming weeks.Cuts are also being made downstream,including over $2 bn in the North American midstream sector alone.
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