Equinor plans $3 billion cost cut
On Wednesday (25), Reuters reported that given the pandemic picture and low oil prices, Norwegian Equinor announced that it plans to cut investments, exploratory drilling and operating costs by about 3 billion dollars. The oil company had already suspended a $5 billion share buyback program and will postpone onshore drilling in the United States, where it has invested billions in recent years.
According to the statement released by Equinor, the new measures will allow the company's operations to have a neutral cash flow in 2020 in case of average oil prices of about $25 per barrel. "We are now taking action to further strengthen our resilience in this situation," said CEO Eldar Saetre.
Other major oil companies such as Saudi Aramco and Shell have also announced measures to address the global crisis. The cuts of five industry giants, including Norway, total $19 billion, down 18 percent from their investments of $106 billion.
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