The oil and gas industry’s ability to cut capital expenditure during the oil market downturn is proof of its “strong survival reflex,” according to a new report by Wood Mackenzie. Many oil and gas companies would turn a profit at an oil price higher than $50 per barrel, and some would do so at U.S. $40 per barrel, the report said.
The reduced spending has damaged production growth prospects, the report said. Exploration and production spending has essentially been cut in half since 2014, a reduction of $230 billion. WoodMac said the deepest cuts have come from focused U.S. independents.
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