US, WASHINGTON (ORDO NEWS) — After laying off thousands of workers, US shale oil producers are slashing executives to cut salaries amid a sharp collapse in crude prices.
And shale oil companies have reduced this month between 25 percent and 50 percent of spending plans, as the market is constantly falling due to a drop in demand caused by the Corona virus and a price war between Saudi Arabia and Russia.
US oil prices have tumbled more than 60 percent this year to about $ 22 a barrel from $ 61 in December.
The US company Parsley Energy to produce shale oil today, Wednesday, it will reduce the salaries of executives by 50 percent, which is the deepest cut of its kind announced so far.
Parsley cut spending plans by forty percent and sent a letter to suppliers asking them to cut costs. Parsley Chief Executive Matt Gallagher said suppliers and employees should know “we are all in it together”.
Last week, Liberty Oilfield Services announced a 20 percent cut in their executive pay. Matador Resources said it will cut the salaries of the CEO and board members by 25 percent, and that of other executives by 25 percent.
Among the US shale oil companies that cut drilling and budgeting activities this week are EOG Resources, Pioneer Natural Resources, White Petroleum Corp and IQT Corp, but have not announced plans to cut executive pay.
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