ConocoPhillips (NYSE:COP) recently said that it is forecasting the oil and gas production to climb and reach the mark of 1.7 mmboed (million barrels oil equivalent each day) in the year 2017. Interestingly, this amount is put forth without inclusion of output from Libya.
However, the output from Libya remains under speculations because of force majeure in relation with 11 oil fields within the epicentre. This happened due to strike attacks by ISIS. Previous month, two oil fields, viz. Bahi and Mabruk were under ISIS attack. Bahi oil field is collectively operated in Libya by ConocoPhillips, Marathon Oil Corporation (NYSE:MRO) as well as Hess Corp. (NYSE:HES).
Previous year, i.e., in 2014, ConocoPhillips produced a total quantity of 1.532 mumbled. Now, with the new forecast of company’s production, there will be an increase of 11%. This means the increase shall be 4% higher from what it was in the year 2013.
The Faster Growing Company
The company also said that it was predicting a growth in the output by 2-3% in the present year. However, ConocoPhillips did not remain much vocal about the production in 2016. As far as the spending is concerned, it is expecting to spend at newer levels for coming two years, i.e., until 2017. In the present year, the company had brought down its capital budget to $11.5 billion in the beginning of this year, a deduction of $2 billion.
Delayed Plans: A Way of Dealing with the Slumping Global Crude Prices
Not only ConocoPhillips (NYSE:COP), but also its other peers and arch rivals, like Apache Corporation (NYSE:APA) and Chevron Corporation (NYSE:CVX) have delayed or put aside the plans of drilling further. The new projects have been delayed with belated spending in order to deal with approximately 50% crash in the crude prices in global market. The prices of crude oil in the international markets have been slouching since June 2014.