Although one company doesn’t represent a whole industry, a shrink-to-grow strategy adopted by ConocoPhillips illustrates pressures on the biggest operators in a world of shrinking opportunity.
ConocoPhillips has disclosed plans to cut capital spending next year to $11 billion from $12.5 billion this year and $14-15 billion in earlier years and to sell properties in 2010-11 worth $10 billion.
“We will be somewhat smaller,” said Chairman and Chief Executive Officer Jim Mulva in an Oct. 28 conference call.
Mulva noted recessionary effects on credit markets and said diminishing access to large opportunities “is and will continue to be quite an issue.”
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Although one company doesn’t represent a whole industry, a shrink-to-grow strategy adopted by ConocoPhillips illustrates pressures on the biggest operators in a world of shrinking opportunity.
