ConocoPhillips: Shale & Oil Sands Spending
CBJ – ConocoPhillips is going out on a limb by spending an additional 50% more money over the next three years in an effort to expand the shale and oil sands drilling markets at a time when crude oil is selling for about half the price it was just a year ago.
The third-largest U.S. oil company now plans increased expenditures totaling about $11.5 billion a year. Specifically, more funding is expected to go towards projects from Texas to North Dakota, while spending will be decreased in other regions, including Australia.
ConocoPhillips, which is based out of Houston, has spun off refining operations for the past couple of years. It has also set a target of boosting production by 6.3% to 1.7 million barrels a day by 2017 amid the worst price crash in five years.
The spending plan amounts to a vote of confidence in the future of North American oil as some have questioned the viability of prospects in Texas and Canada with crude trading around $50 a barrel.