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IEA Rings `Alarm Bells' on Deeper Oil Industry Spending Cuts

  • Belt tightening this year may top cuts in 2015: Fatih Birol
  • IEA head says oil industry could trim spending again in 2017
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Oil's Slide: Do Prices Have More Room to Fall?

The oil industry is set to further reduce spending this year as crude prices remain low, according to the head of the International Energy Agency, signaling more pain for oil services and engineering firms.

Explorers already slashed capital investments this year by 17 percent from 2015 levels and are likely to deepen the cuts, Fatih Birol, executive director of the Paris-based IEA, said in an interview on the sidelines of the annual IHS CERAWeek conference in Houston. Companies may eventually top last year’s 24 percent chop and might further lower spending in 2017, he said.