Shell and BP sharply cut investment
It is reported that the international oil giant Shell and BP have each announced that they will substantially reduce capital expenditures in order to cope with the sharp drop in oil prices, and most of the reductions in capital expenditures will occur in oil and gas exploration and mining operations. Shell said that due to the impact of falling oil prices, the company will cut investment by 15 billion U.S. dollars over the next three years. In 2015, the company's investment will be lower than in 2014. Shell said that the company is delaying investment in most businesses, selectively withdrawing from some business areas, and driving down supply chain costs. BP has already announced that due to the impact of falling oil prices, the company will cut its capital expenditure by 4 billion to 6 billion U.S. dollars this year. This year's capital expenditures will be sharp from the previous forecast of $24 billion to $26 billion.
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