As oil and gas prices plummet keep a sharp eye out for the first cracks in the plans of Alaska Gas Pipeline producers and potential builders. Last week we heard that financially strong ExxonMobil is holding steady with it's capital investment plans. This week we're see some signs of potential weakness in Denali Pipeline partner ConocoPhillips.
According to Brett Clanton of the Houston Chronicle:
ConocoPhillips "will not be as aggressive" with drilling in North America and will probably keep its capital spending budget flat in 2009 amid continued volatility in the commodity and credit markets, the company’s chief executive said Wednesday.ConocoPhillips third quarter earnings call was silent on the progress of the Denali Pipeline or the overall outlook for Alaska Gas production and utilization (transcript link, presentation link).
The temporary pullback in the lower 48 U.S. states and Canada would result only in delays, not cancellations, of projects and would be part of a broader effort by ConocoPhillips to watch costs and prioritize spending, Chairman and Chief Executive James Mulva said in a conference call after release of the company’s third-quarter earnings report.
"Until we see more certainty or probability, I think our concentration is to live within our means," he said. (MORE)
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