Lower oil prices have led to oil companies making spending cuts and reducing operating costs, and these cuts have resulted in the loss of thousands of jobs and projects being scrapped. BP is among the oil companies that has made a number of large cuts, and there are more cuts to come.
According to a report from Reuters, BP has announced a third round of spending cuts and asset sales that will take place over the coming years. These cuts are being made, not only to combat the low oil prices, but also to help pay for its $54 billion U.S. oil spill settlement. BP has already sold nearly $50 billion in assets since the spill in 2010, and it expects to spend an additional $3-5 billion in 2016.
Although BP still has cuts to make in order to combat these unfavorable circumstances, the outlook is not completely bleak. Despite the steep drop in oil prices, BP was able to increase oil and gas production by 4.4% from 2014, and expects production to rise again in the fourth quarter.