Oil Industry May Cut Spending for Third Year in Row, IEA Says

The oil industry may cut spending for a third straight year in 2017 as lower costs kick in and companies continue to grapple with weaker finances because of crude’s slump.

Investments in oil and gas fields are set to drop 24 percent to $450 billion this year, the International Energy Agency said in a report, deeper than the 17 percent decline estimated in February. Capital expenditure fell 25 percent last year, taking out more than $300 billion of spending in two years. Investments will have been cut for two consecutive years for the first time in 40 years, according to the Paris-based agency.

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