US upstream news

The revised 2020 capital budget of US$1.3 billion or less includes the implementation of 2Q20 frac holidays in the Bakken and Eagle Ford.

The company will be reducing its average rig count from 9 to approximately 3 in the Bakken and 10.5 to approximately 4 in Oklahoma.

At least nine of the world’s top planned exploration wells for 2020 are at risk of being suspended as a result of the combined effect on oil and gas activities of the Covid-19 virus and the oil price war.

The largest share of the company's capital spending reduction will be in the Permian Basin.

The company has said however that Premier Oil has withdrawn from the project, as the well did not meet its pre-drill expectations.

Rystad estimates total gas flaring declined to 700 million ft3/d in 1Q20, with 550 million ft3/d flared at the wellhead – the lowest quarterly flaring rate since 3Q18.

The Monument exploration well found approximately 200 ft (c. 60 m) of net oil pay with good reservoir characteristics in Paleogene sandstone.

The company has made an additional reduction in the 2020 capital plan down to the new midpoint of US$780 million from the previously announced US$950 million in March 2020.

The company has more than US$585 million of cash on its balance sheet and will continue to operate its business in the normal course without material disruption to its vendors, partners or employees.

BP has cut its 2020 spending plans by 25% and will reduce output from its US shale oil and gas business.