DOW JONES NEWSWIRES
Anadarko Petroleum Corp. (APC) said it would cut back capital
spending as much as 18% this year, compared with a view for higher
spending given six months ago, an eternity ago for the oil industry
which has seen prices tumble since then and the recession
worsen.
Numerous oil-and-gas producers have cut capital expenditures in
recent months as the commodity prices have plunged. Some also have
idled rigs and pared back production-growth forecasts.
"Even with reduced year-over-year capital expenditures, we
expect to increase our total sales volumes in 2009," said Chief
Executive Jim Hackett. He added 2009 would be a "challenging year"
for the industry, and that Anadarko will continue to monitor the
economic conditions as it allocates its capital.
The second-largest independent oil and natural-gas producer
behind Devon Energy Corp. (DVN) set its capital-spending budget at
$4 billion to $4.5 billion, down from last year's spending of $4.88
billion. The company had already said it would devote 20% of this
year's plans to major projects, including the Jubilee field
offshore Ghana, and 20% to exploration activities.
The company expects full-year sales volumes of 208 million to
212 million barrels of oil equivalent a day, compared with 2008's
206 million.
Anadarko's shares closed Tuesday at $39.24 and haven't traded
premarket. The stock is down by half the past eight months.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com