Oil Giant Cuts Budget By 80 Percent And Suspends Fracking
By Charles Kennedy
OilPrice.com
Sun, 28 February 2016
Whiting Petroleum Corp. (NYSE:WLL), the largest oil producer in North Dakota, has announced that it will suspend all fracking in the state and cut its budget for this year by 80 percent in a move that sent its shares up 9 percent on Wednesday, back down to a record low on Thursday, and $4.02 this morning.
Across the E&P patch, it’s a volatile game of craps right now that has investors torn between responding positively to spending cuts to weather the oil price downturn, and negatively to the notion that all these companies are doing is narrowly avoiding bankruptcy.
As of 1 April, Whiting will halt all fracking and stop completing its wells at 20 Bakken and three Forks sites. By this summer it will cut spending to $160 million for the rest of year to fund maintenance.
These are some of the biggest spending cuts in the industry so far, and investors have responded positively to Whiting’s strategy for waiting out low oil prices.
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