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West Texas oil producers reduce capital budgets, rig count

MIDLAND, Texas — Some Permian Basin oil producers are slashing spending plans for 2015 as crude prices continue to tumble.

Concho Resources has trimmed its $3 billion capital program by a third. It will also reduce the number of drilling rigs it operates, from 35 to 25 in the second quarter.

The Midland Reporter-Telegram reports reported Sunday that the board of Elevation Resources had approved a $227 million capital budget in December.

Elevation chief Steve Pruett says he’s asking the board to cut the budget to $100 million.

Pruett says the company will aim to “invest as little as we can” with crude below $50 per barrel.

Henry Resources President Danny Campbell says many Midland families will be “affected” by the downturn. The company will cut activity by up to 40 percent.

Related: Halliburton job cuts coming to fruition

 

Information from: Midland Reporter-Telegram,http://www.mywesttexas.com

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.

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