US Oil and Gas Majors slash Capex, Canadian’s Auction Equipment to stay afloat.
Major U.S. oil and natural gas producers are slashing capital spending for next year in response to a near 60 percent drop in global crude prices, but few, if any, are forecasting a drop in production.
Oil majors Exxon Mobil Corp and Chevron Corp have said they expect production to rise over the next two years, while Devon Energy Corp has said that it can grow output next year even at current prices.
Still, overall U.S. output is expected to decline over the remainder of this year and next year, according to most estimates. The International Energy Agency (IEA) said in October that non-OPEC output was expected to contract by nearly 500,000 barrels per day next year, but traders and hedge fund managers are questioning whether output is declining by as much.
Increased efficiency, lower service costs and low production costs in high-quality shale fields mean that companies can continue to increase production even as they scale back spending.
As the price of oil continues to languish below $50 a barrel, some oil and gas companies in Alberta Canada are auctioning off their equipment to stay afloat or liquidating after being forced under, however one man’s hard times can be another’s boom time, as the province’s auction houses get busier.
If you are interested you may check what is currently available at auction sites here.