A pair of Houston-based oil and gas companies have announced they will be making cutbacks in 2015 as a result of slumping oil prices. Noble Energy Inc. and Marathon Oil join a growing laundry list of O&G companies nationwide making similar announcements.
Noble Energy, one of the largest companies in the Houston area, announced that it expects to slash its 2015 capital spending by 40 percent to $2.9 billion, according to the Houston Business Journal. Approximately 60 percent of Noble’s capital budget is in place for domestic onshore assets, with 35 percent in place for global offshore development and the remaining five percent for global offshore exploration. Noble also said it will focus its onshore investments in the DJ Basin and Marcellus shale plays.
David Stover, president and CEO of Noble Energy on budget cuts:
“In a highly uncertain commodity environment, this program retains substantial operating and financial flexibility to adjust our plans while allowing us to take advantage of value-creating opportunities that may arise.”
According to FuelFix, Marathon Oil Corp. said on Thursday that it would be cutting 350 to 400 jobs, or 10 percent of its workforce. Marathon says that most of the cuts will be in the United States.
Lisa Singhania, a spokeswoman for Marathon commented:
“These reductions will be focused largely on U.S. payroll employees, and will be weighted to be above-the-field and support services personnel. Our goal is to conclude this effort as quickly as possible to limit the period where our employees are certain of their standing and to minimize disruption. These types of actions are difficult and never taken lightly, but are necessary in the current environment.”