French energy group Total announced Wednesday that is was slashing capital spending, delaying the start date of several projects and upping its cost-cutting targets in a response to dramatically lower global oil prices.
In the group's Strategy and Outlook presentation Wednesday, Total's Chief Executive Patrick Pouyanne told investors that the group was reducing the amount it spends on oil and gas projects from a peak of $28 billion in 2013 to $23-24 billion this year and further to $20-21 billion in 2016.
The group saw a "sustainable level" of capex of $17-19 billion from 2017 onwards, according to the presentation.
Total was one of the first oil majors to announce a sharp cost-cutting regime in 2014, reacting quicker than others to the sharp decline in global oil prices on the back of a glut in supply and lack of demand. From a peak price of $114 a barrel in June 2014, now, a barrel of benchmark Brent crude costs $49.66.