ConocoPhillips Co. unveiled plans amid a first-quarter loss to significantly boost oil curtailments that will lop off more than 30% of the Houston-based company’s oil production.
In an April 30 company release, ConocoPhillips—the largest U.S. independent oil and gas producer—said it will curtail its North American oil production in May by a further 40,000 bbl/d. In total, the company will shut-in 265,000 bbl/d of production next month across operations in Alaska, Canada and the Lower 48, which includes the Bakken, Eagle Ford and Permian Basin shale plays.
By June, ConocoPhillips will sharply boost oil curtailments, with plans to bring total cuts to 460,000 bbl/d or a third of the company’s first-quarter production on a net basis, according to CEO Ryan Lance.
“This should be seen as a clear signal that we’re willing to use flexibility and balance sheet strength to protect value for our shareholders,” Lance said during the company’s earnings call on April 30.
The company had previously released plans on April 16 to begin voluntarily reducing its planned North American oil production by 225,000 bbl/d beginning in May.
Analysts at Rystad Energy on April 28 forecast at least 300,000 bbl/d of U.S. oil production will be shut in during May and June with low oil prices likely to force more production offline. The outlook also comes as several states in the U.S., including Texas—the largest oil-producing state, continue to debate regulator-mandated prorations.
Companies and industry groups have remained divided on the issue of prorations. On the earnings call, Lance noted that ConocoPhillips hasn’t been supportive of proration from a regulatory perspective.
“The market is reacting, the market is working and it’s going to drive supply down to match inventory levels and what the demand of what the refineries can take on the other end,” he said.
ConocoPhillips on April 30 reported a net loss for the first quarter of $1.74 billion, or $1.60 per share. In comparison, the company posted a profit a year earlier of $1.83 billion, or $1.60 per share.
Recommended Reading
Electron Gold Rush: ‘White Hot’ Power Market Shifts into High Gear
2025-03-06 - Tech companies are scrambling for electrons as AI infrastructure comes online and gas and midstream companies need to be ready, Energy Exemplar CEO says.
Small Steps: The Continuous Journey of Drilling Automation
2024-12-26 - Incremental improvements in drilling technology lead to significant advancements.
Aris CEO Brock Foresees Consolidation as Need for Water Management Grows
2025-02-14 - As E&Ps get more efficient and operators drill longer laterals, the sheer amount of produced water continues to grow. Aris Water Solutions CEO Amanda Brock says consolidation is likely to handle the needed infrastructure expansions.
Halliburton, Sekal Partner on World’s First Automated On-Bottom Drilling System
2025-02-26 - Halliburton Co. and Sekal AS delivered the well for Equinor on the Norwegian Continental Shelf.
E&P Highlights: March 3, 2025
2025-03-03 - Here’s a roundup of the latest E&P headlines, from planned Kolibri wells in Oklahoma to a discovery in the Barents Sea.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.