Analysis: Oil companies cut budgets by one third in 2015

The dive in the oil price is having a dramatic impact on oil and gas activities this year, as companies across the board are cutting exploration costs by more than one third, according to Wood Mackenzie.

Photo: Kjetil Alsvik/Statoil

The industry for oil and gas will collectively cut over a third of the budget for exploration in 2015 in order to adapt to the new level of low oil prices, according to assessments from global consultant company Wood Mackenzie.

The number of wells will also take a dive this year, while drilling activity is expected to rise again during 2016, where several companies will increase their drilling activities in the hopes of doing so at a lower cost, estimates Wood Mackenzie in a new analysis.

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