British Petroleum has some major cost-cutting to do. Thanks to a plunging crude price, oil and gas companies such as Chevron, ConocoPhillips and Statoil have seen a slump in earnings, forcing them to cut down on expenditure and the story is no different for BP. After already cutting hundreds of jobs in Aberdeen and at many more locations around the world, BP is expected to slash billions off its capital expenditure program. These measures have come on the heels of the company’s upstream operations showing a fall in earnings by 73% as compared with last year and its full-year profit crashing to $9.3 billion from $23.4 billion a year earlier. Looks like the upstream industry is not so upbeat anymore.
Slash and burn
After cutting hundreds of jobs in Aberdeen, BP is expected to slash billions off its capital expenditure program