US producer Whiting Petroleum is bracing for output to drop to 150,000 b/d of oil equivalent (boe/d) in 2016 from 170,000 boe/d now, based on capital expenditure (capex) of $1bn, coming entirely from discretionary cash flow at $50/bl oil, chief executive James Volcker says. Without additional drilling, the firm would face a 40pc year-on-year decline rate this year, 30pc in 2016 and 20pc in 2017. “We are designing Whiting to run in a $50/bl flat oil price environment,” Volcker says.
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