Even though European benchmark crude Brent's price has hit the lowest level seen in 18 years, its value could slide even further, according to Jason Bordoff, former Obama Administration energy advisor. "[It] is not done yet," he says.
Following the announcement that investments will be reduced, employees at Aker BP will be informed how many must leave the company due to lower activity, among other things. This will happen after Easter, and suppliers will also be hit.
Oil firms have made broad cuts in their planned investments for the year. This has already entailed terminations of contracts with rig companies, and more will follow, analysts predict speaking to Norwegian media.
After going through an already strained period, oil service firm Aker Solutions has seen a significant downturn in economic activity since the coronavirus broke out, as is evident in the annual report, which also reveals a major pay cut for CEO Luis Araujo.
The Danish chemical company will supply technology to a coming facility in Arizona that will convert natural gas into gasoline. The concept can be used for, among other applications, reducing flaring within the oil and gas industry.
Heavy downgrades don't affect the German gas giant's development plans in Denmark, where a major find is planned to be worked into the development of the Ravn field. The company is also preparing to drill a new well in the North Sea.
Equinor's CEO, Eldar Sætre, was paid USD 1.74 million for his work last year, a slight decrease compared to the year before, reveals the company's new annual report, published at a time when the oil industry is crumbling around the Norwegian major.
"Burning is the problem," says Helen Hagel, head of climate and environmental policy at Greenpeace Denmark. She dismisses the oil industry's proposal to cut two thirds off emissions from North Sea extraction.