OXY & COP Slice $4.9 Billion from Budgets, WTI Closes at $48.24
The Baker Hughes US Rig Count for Land Rigs declined -5.5% this week to 1472 from 1557. The horizontal rig count dropped to 1160 down -63 from last week. The week ended on a positive note with the WTI closing at $48.24 per barrel.
The overall horizontal rig count has declined -5.2% to 1160 from last week and -168 from January 2014. The most significant decline comes from the Permian, which dropped -10 rigs, and the Mississippian, which dropped -7 rigs compared to last week. Barnett dropped one third of its horizontal rigs to 8 compared to the 12 that were running last week. Of the -9 rigs that the Mississippian lost this week 7 were horizontal rigs.
The top five basins dropped -50 rigs, a -5.5% decline from last week:
- Permian down -5.6%
- Eagle Ford down -1.7%
- Williston down -3.3%
- Marcellus down -1.3%
- Utica down -3.8%
- Barnett down -24.0%
- Mississippian down -14.3%
Occidental Reduces 2015 Budget by 33%
Occidental (NYSE: OXY) has released their 2015 capital budget at $5.8 billion which is a 33% decrease from the 2014 budget of $8.7 billion, expecting to spend $4.5 billion on oil and gas operations. Their capital program will focus in on their core Permian assets in North America along with parts of the Middle East. They have also minimized their development activities in the Williston Basin.
Oil and gas daily production remained flat for the trailing 12 months at 591,000 Boe. Domestic oil production improved 6% in the past year to 181,000 barrels from 11,000 due to Permian operations.
ConocoPhillips Cuts $2.0 Billion from Budget
ConocoPhillips (NYSE: COP) announces yet another cut to their budget bringing it down to $11.5 billion from the previously announced $13.5 billion because of the weak commodity price environment. They have also announced 35% growth in combined production in the Eagle Ford and Bakken in the past year. Overall crude oil production has also increased 26% and unconventional production grew 37% in 2014.