Oil price lays waste to energy giants
FROM AN ARTICLE BY DANNY FORTSON OF THE SUNDAY TIMES PUBLISHED 25 JAN 2015 UNDER THE HEADLINE:
“Oil price lays waste to energy giants”
THE chaos unleashed by the collapse of the oil price will be laid bare in the next fortnight as BP reveals a halving of profits, Shell cuts billions in spending, and Centrica comes under pressure to slash its dividend.
Crude prices have fallen from $114 a barrel in the summer to just $47.12 on Friday.
This week, Shell is expected to slash 5%-10% from its $35bn (£23bn) spending plans for 2015. The company, which recently shut platforms at its Brent field in the North Sea after nearly 40 years of production, is likely to target pricy onshore operations in the US and Canada.
The cuts come amid growing concern over the future of the North Sea and potential industrial unrest as companies impose pay cuts, redundancies and changes to working conditions.
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