BP and BG Group have slashed $9 billion (£5.98 billion) from their capital-spending plans, bringing the total cuts to planned investment by oil majors to $35 billion as the price of “black gold” continues to languish.
The FTSE 100 giants posted huge damage from the slump — between them announcing fourth-quarter losses of nearly $9 billion on the back of $12.5 billion of writedowns.
The duo signalled they expect a prolonged period of subdued prices as they slashed investment budgets — BP by up to $6 billion and BG by as much as $3 billion.
Shell and US giant ConocoPhillips reduced their 2015 spending by $15 billion and $5.6 billion, respectively.
Chevron also cut back its investment, by $5 billion to $35 billion.
BP announced a $969 million, fourth-quarter loss today after taking a $3.6 billion charge for the period.
This compares to a $1.5 billion profit a year earlier, when the average price of oil was $109 a barrel, compared to $77 in the final quarter of 2014.
Oil has slumped more than 50% since June to $56 a barrel today.
BP chief executive Bob Dudley said: “We have now entered a new and challenging phase of low oil prices through the near and medium term.”
