May 5, 2020 / 9:35 AM / a month ago

UPDATE 1-GRAPHIC-Coronavirus pushes oil majors to biggest output cuts in 17 years

    * Production set to drop by nearly 11% in Q1
    * Graphic tmsnrt.rs/2SzRgD2

 (Updates with Total, data, details, graphic)
    By Ron Bousso
    LONDON, May 5 (Reuters) - Oil and gas output from some of
the world's top oil companies is set to drop by nearly 11% in
the second quarter of 2020 to levels not seen in at least 17
years, according to Reuters calculations.
    The output cuts are driven by an unprecedented drop in oil
consumption due to coronavirus-related movement restrictions
that have led to a surge in supplies and a collapse in crude
prices to levels not seen in more than two decades.
    Five of the top publicly-traded oil and gas producers, known
as oil majors, have in recent weeks outlined plans to sharply
reduce production from Iraq to the shale basins in the United
States.
    The cumulative output for Exxon Mobil, Chevron, Royal Dutch
Shell, BP and Total will drop to the lowest since at least 2003,
based on Refinitiv data. 
    "Our output will be down in the second quarter, and it is
very uncertain how the rest of year will unfold," BP
Chief Executive Officer Bernard Looney told Reuters last week.
    BP said it will reduce its U.S. shale oil output by 70,000
barrels of oil equivalent per day (boepd) in 2020, around 14%
lower than its 2019 output of 499,000
boepd.
    It is also cutting in other countries, including in OPEC
nations and other major producers including Russia and
Azerbaijan that agreed in March to cut output by an
unprecedented 23%, Looney said.
    Shell Chief Financial Officer Jessica Uhl said that in some
cases the production cuts are due to logistical problems such as
lack of storage.
    Exxon and Chevron are slamming the brakes on oil output,
with plans for combined global shut-ins of 800,000 barrels per
day in response to plunging crude prices.
    Total said on Tuesday its production will be at least 5%
lower on average in 2020 at 2.95 to 3 million boed, driven by
voluntary reductions in Canada and the OPEC+ quotas.
    Following is a table of planned production reductions in the
second quarter of 2020, based on company guidance and Reuters
calculations (in millions of boed)
             2019        Q1 2020     Q2 2020     
 Exxon       3.95        4.05        3.65                    
 Chevron     3.06        3.24        2.84                    
 Shell       3.65        3.72        2.87                    
 BP          3.78        3.72        3.30                    
 Total       3.01        3.09        2.70                    
 TOTAL       17.46       17.80       15.35       
 
    

    
 (Reporting by Ron Bousso; editing by Philippa Fletcher, Kirsten
Donovan)
  
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