Statoil says it will hold back U.S. shale ramp-up

|About: Statoil ASA (STO)|By:, SA News Editor

Statoil (NYSE:STO) says it will only slightly increase its U.S. shale oil and gas production in the near term due to reduced spending, well below a potential for a 50% surge.

STO, which produces ~10% of its oil and gas from its U.S. shale operations in the Bakken, Eagle Ford and Marcellus formations, also is cutting back investments in the area, as shale projects are competing for capital within the company, said its head of U.S. onshore activities.

STO abandoned its 2020 production target earlier this year and cut its capex budget, saying it needs to save cash and return more to shareholders after a decade of ramping up spending.