Shell Canada Ltd. is cutting its 1992 budget by $90 million, or 11%, because of "brutal" business conditions.
The company reported a loss of $7 million in first half 1992, compared with a loss of $95 million for the same period in 1991. It reported a $12 million loss for the second quarter of this year.
Retail gasoline competition and low natural gas and sulfur prices were blamed for the loss.
Shell said the budget cut to $745 million from $835 million is the first move in efforts to improving cost management, revenue enhancement, and capital asset management.
The company said staff levels will be reviewed but it too soon to say there will be major staff cuts or how many workers will be affected. Shell has already cut staff and launched a reorganization program for its downstream operations.
Shell spokesman Gary Sherkey said business conditions are "just brutal" upstream and downstream.
He said the budget cut will be shared between oil field development and downstream operations. Drilling activity will be focused on prospects that will yield early returns.
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