BP Eyes More Spending Cuts After 80% Profit Drop

BP said on Tuesday it could cut capital spending further after reporting an 80 percent drop in profits in the first quarter of the year, when oil prices touched a near 13-year low.

The British oil company, the first major to report on one of the weakest quarters, lowered its 2016 spending target to $17 billion, from $17-19 billion, and said the marker could fall to $15-$17 billion next year if oil prices remain weak.

These cost reductions have enabled the oil producer to forecast it can balance its books at an oil price of $50-55 a barrel in 2017, it said, down from $60 previously eyed.

If Graphene batteries are indeed closer to mass production than we first thought, all these oil companies are going to drown in their oil. If they don't pump as much out of the ground as they can now, they may never have anyone to buy it again.

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