E&P Spending Continues to Plunge

While oil prices have recovered sharply off their lows, E&P spending continues to be gutted.

A new survey from Barclays showed that about 70% of companies changed or introduced new budgets with global E&P spend to be down 27% year-over-year.

They note this is the first time since 1986/87 upstream investment has fallen for two years in a row.

Further, they note that absolute spend is down 44% from 2014 levels.

North America spend is now trending down 40% (vs. -27% in January) and International spend is now trending down 21% (vs. -11% in January).

 

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