Insight

Survival in 2016 - what upstream spending cuts are required?

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Report summary

With spot prices in the US$30/bbl to US$40/bbl range, the primary focus for many companies is survival. Strategic actions in response to collapsing oil prices drove the price required for cash flow neutrality down from the mid-90s to the mid-70s during 2015. Entering 2016, the challenge is even greater; the 40 companies in this report required an average of US$65/bbl Brent to be cash flow neutral. Can they cope with current prices?

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    Survival in 2016 - what upstream spending cuts are required February 2016.pdf

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