$70 Oil Threatens Big Oil Projects

$70 Oil Threatens Big Oil Projects$70 Oil Threatens Big Oil Projects

Big Oil’s prized projects won’t face major cuts unless oil prices fall below $70 a barrel, BP’s chief financial officer told investors.

“We’re not expecting to adjust capital expenditures in response to oil prices,” Fuel Fix cited BP CFO Brian Gilvary as saying in a conference call. “That would put in peril the future growth. The balance sheet could more than comfortably handle $80 a barrel.” Sinking oil prices have put oil company investors and suppliers on watch for any signs that they’ll trim spending next year. So far, BP isn’t making any big plans to cut spending because of oil prices, Gilvary said.

“Where we have room at the margins to pare back or reface spend without compromising future growth, we will do so,” he said. “Relative to current guidance, I expect this could make a difference of $1 to $2 billion in 2015, with lower spend in the downstream following the completion of the Whiting refinery project.”