Oil and gas firms expected to cut capital expenditure by 40%


This was last year, by the way. I presume this has increased to 70% by today. And we are fundamentally boring.

Dateline 2015-12-29, The Star:

ANALYSTS are expecting oil and gas (O&G) firms to cut their capital expenditure by up to 40% next year as global oversupply of the commodity continues.

UOB KayHian said earnings risk for O&G companies had not bottomed out and that the global oil majors were expected to slash capital expenditure by between 10% to 40%.

“The sector is still fundamentally unexciting,” said UOB KayHian in a recent report.

Global oil prices hit their 11-year lows at US$36.25 a barrel last week, before it rebounded. The current oil price is a far cry from the US$115 per barrel registered in June 2014.

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