Get the latest market trends in your inbox
Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul
Tampa-St. Petersburg news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg
Photo: Karol Serewis/SOPA Images/LightRocket via Getty Images
Royal Dutch Shell and Total this morning announced plans to sharply cut spending and freeze share buyback plans.
Why it matters: The moves signal how cratering demand from COVID-19 and the collapse in prices are upending the outlooks for companies large and small.
Driving the news: Shell is cutting planned capital spending this year to $20 billion or lower, compared to the pre-crisis estimate of $25 billion.
- It also plans to cut operating costs by $3 billion to $4 billion over the next 12 months.
Meanwhile, Total said oil at $30 per barrel means a roughly $3 billion hit to capital spending, which means a new target of under $15 billion this year.
- The France-based multinational also said it can save $800 million in operating costs compared to 2019.
- They're just the latest in a string of oil companies — including ExxonMobil and a number of independent U.S. shale producers — to unveil deep cuts of late.
Go deeper: Coronavirus could lead to a wave of defaults for oil companies