(MENAFN) Oil and gas companies could cut spending on exploration and production (E&P) in North America by 30 percent or more this year if US crude oil prices continue to trade in the USD50-USD60 per barrel range, Barclays said, Arab News reported.
Brent crud futures were at USD50.50 on Friday, while US crude futures were at USD48.57- both at five-year lows, having more than halved since June to oversupply and tepid demand growth.
Spending in North America will decrease 14.1 percent, while international spending will fall 6.7 percent, he said, noticing companies' budgets had assumed Brent at about USD70 per barrel and US crude at USD65.
That would mean spending across the globe would fall about 9 percent to USD619.43 billion this year, he estimated on the basis of a survey of 225 oil and gas companies.
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