mining giant bhp cuts us shale oil rigs by 40 amid sliding price
Saturday 26 July 2025
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Mining giant BHP cuts US shale oil rigs by 40% amid sliding price

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Mining giant BHP cuts US shale oil rigs by 40% amid sliding price

BHP Billiton
Sydney - AFP

The world's biggest miner BHP Billiton Wednesday said it was cutting back its operating US shale oil rigs by 40 percent amid slumping prices, but expected production output to rise for the financial year.
BHP said it would reduce the number of rigs from 26 to 16 by the end of the June in response to weaker oil prices. Shale volumes were still forecast to grow by approximately 50 percent during the period.
"In petroleum, we have moved quickly in response to lower prices and will reduce the number of rigs we operate in our onshore US business by approximately 40 percent by the end of this financial year," chief executive Andrew Mackenzie said.
"The revised drilling programme will benefit from significant improvements in drilling and completions efficiency."
Mackenzie said while the firm's drilling operations would focus on its Black Hawk field in Texas, "we will keep this activity under review and make further changes if we believe deferring development will create more value than near-term production".
Shares in BHP were trading higher, up 1.49 percent to Aus$27.89 in afternoon trade.
Oil prices slid again Tuesday after the International Monetary Fund slashed its forecast for world economic growth and revived concerns about the strength of crude demand.
US benchmark West Texas Intermediate for February sank US$2.30, or 4.7 percent, to US$46.39 a barrel, not far from its lowest level since March 2009.
"The announcement that BHP will reduce the number of US onshore oil rigs it operates by the end of this financial year is a pointer to the industry-wide supply response on lower oil prices that is yet to come," CMC Markets' chief market analyst Ric Spooner said in a note.
BHP added that its iron ore output had risen by 16 percent for the three months to December compared to a year earlier, hitting 56.4 million tonnes.
Prices in iron ore, one of BHP's core commodities, slumped 47 percent in 2014 amid a global supply glut and softening demand from China.
The Anglo-Australian miner also booked a charge of up to US$250 million for the sale of petroleum and gas assets in the United States, and up to US$350 million in after-tax charges for the Nickel West mine in western Australia.
BHP said in November it had called a halt to the planned sale of Nickel West as no bidder had offered the right price.
Mackenzie said BHP's operational performance over the past six months was strong and the firm was cutting costs and lifting productivity faster than it had planned.
He added that the company remained committed to its planned demerger, due to be completed by the end of the financial year, which will see a new independent company called South32 created by spinning-off non-core assets including aluminium, manganese, silver and selected coal and nickel operations.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

mining giant bhp cuts us shale oil rigs by 40 amid sliding price mining giant bhp cuts us shale oil rigs by 40 amid sliding price

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

mining giant bhp cuts us shale oil rigs by 40 amid sliding price mining giant bhp cuts us shale oil rigs by 40 amid sliding price

 



GMT 10:18 2018 Thursday ,30 August

Iran incapable of closing Hormuz, Bab Al Mandeb

GMT 10:46 2012 Thursday ,16 February

BMW i8 The Best of the 2012 Detroit Auto Show

GMT 15:48 2018 Sunday ,21 January

Iraqi, Kurdish PMs try to resolve bitter dispute

GMT 06:15 2018 Tuesday ,09 January

Hollywood stars declare war on sexual misconduct

GMT 00:09 2017 Sunday ,29 January

Egypt working for Libya political solution, says FM

GMT 06:03 2017 Wednesday ,01 March

Saudi Aramco, Malaysian Petronas sign historic deal

GMT 13:55 2012 Sunday ,15 January

Youngest Microsoft professional dies

GMT 10:54 2016 Monday ,14 November

US elections have heightened uncertainty

GMT 10:49 2017 Wednesday ,20 September

Nabila describes mother’s death as the worst in life

GMT 00:24 2017 Saturday ,23 September

Gulf Air launches daily flights to Istanbul

GMT 14:50 2011 Friday ,24 June

Nelly Maqdasi sings for Arabs
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice