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Saudi Arabia to U.S. Oilmen: Cut Costs or Exit the Business

Naimi says high-cost producers need to lower cost or liquidate
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By

Javier Blas and

February 23, 2016, 11:37 PM UTCUpdated onFebruary 24, 2016, 6:47 AM UTC

The world’s most powerful oilman brought a harsh message to Houston for executives hoping for a rescue from low prices: high-cost producers -- many of them sitting in the room -- need to either “lower costs, borrow cash or liquidate."

For the thousands of executives attending the IHS CERAWeek conference, the message from Saudi Arabia oil minister Ali al-Naimi means deeper spending cuts, laying off more roughnecks and idling drilling rigs.