ConocoPhillips plans to reduce its crude oil production by 225,000 bbl/d as of May 2020, including 100,000 bbl/d at its Surmont oil sand facility in western Canada and 125,000 bbl/d across 48 US States. Curtailment will be decided on a month-to-month basis, depending on operating agreements and contractual obligations, until market conditions improve.
In addition, ConocoPhillips will reduce its 2020 capital expenditures by US$1.6bn, on top of the previously announced reduction of US$700m. The company's capital expenditures will thus be cut by US$2.3bn, i.e. approximately 35% of the initial investment plan. ConocoPhillips will also cut its operating costs by US$0.6bn (-10%) to US$5.3bn and will suspend its share repurchase programme.
Other oil and gas companies have announced similar capital expenditure cuts. In April 2020, ExxonMobil reduced its 2020 investment plans by 30% from US$33bn to US$23bn. Most of the capital expenditure cut will be located in the Permian Basin in western Texas and in the south-eastern New Mexico (United States), where the company expected to produce 360,000 bbl/d in 2020. ExxonMobil now foresees to reduce its output by 15,000 bbl/d in 2020 (around 345,000 bbl/d), and by 100,000 to 150,000 bbl/d in 2021 (to 210,000 - 260,000 bbl/d).