ConocoPhillips will slightly reduce capital spending in the coming year due to falling oil prices and the global economic downturn, but doesn’t expect to cancel major projects, according to a Reuters report.
Speaking to reporters after a speech at the National Press Club today, Jim Mulva, chief executive officer of ConocoPhillips, said, “We will be announcing in the next week or so what our capital spending will be. It will be down some.”
ConocoPhillips budgeted $15 billion for capital spending in 2008, including $1 billion for Alaska, and originally suggested it would maintain that spending level this year.
But as markets and oil prices dropped, the company postponed the announcement of its annual budget, and gave hints of plans to be more watchful about spending in 2009.
According to the Reuters report, Mulva did not detail how much the company might cut from its budget, but said, “We’re in business for the long term, and we don’t alter too much our capital spending.” He added that multiyear projects would not be affected.
“We don't change those commitments,” Mulva said.
ConocoPhillips previously announced plans to drill two exploration wells in Alaska this winter to follow up on previous discoveries in the National Petroleum R