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(Some of the biggest oil explorers in the Western Hemisphere are cutting budgets yet again to conserve cash as a plunge in energy markets shows no signs of abating.
ConocoPhillips will reduce capital spending by 25 percent next year to $7.7 billion to protect the highest dividend yield among major U.S. oil producers, the Houston-based company said Thursday. That came a day after Chevron Corp. disclosed a 2016 budget 24 percent smaller than this year’s plan. Together, the cuts by both companies totaled $10.9 billion, enough to rent 10 deepwater drilling rigs every day for more than half a decade.
Petroleo Brasileiro SA, battered by a corruption probe and the market collapse that have led the oil industry’s most ambitious investment plan to unravel, probably will scale back its $119 billion, five-year capital budget as soon as next month, Chief Executive Officer Aldemir Bendine said in an interview. Petrobras, as the Brazilian state-controlled company is known, will start 2016 with $20 billion in cash, he said. The company currently has a $128 billion debt load.
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