BP reported Q1 figures yesterday with the oil major warning it will slash its group capital expenditure program by 25% to $12bn for 2020.
In upstream activities, brokers Lorentzen & Stemoco reported this morning this means delaying exploration and appraisal activities, curtailing development activities in lower margin areas and being more cautious on early development projects.
Consequently, underlying production in 2020 will be reduced by 70,000 bbl oil equivalent on an annual basis.
Other oil majors will report results this week including Exxon Mobil on Friday and Royal Dutch Shell tomorrow, both expected to outline how they will handle the sudden, dramatic fall in the price of crude.
According to American oil field services company Baker Hughes, which reported its Q1 results last week, the oil and gas rigs in Canada and US counted the lowest number since at least the year 2000, with particularly the Permian Basin and New Mexico being affected by cuts in rig usage.