Cutting

Cost cutting as a result of reduced drilling led Forest Oil Corp. to swing to a 2Q2009 profit of $37.1 million (36 cents/share) after posting a loss of $68 million (minus 78 cents/share) during 2Q2008. While the company reduced its drilling investment, management said for the remainder of the year the Denver-based company will focus its resources on its promising acreage in the Haynesville Shale and the Granite Wash.

Cost cutting as a result of reduced drilling led Forest Oil Corp. to swing to a 2Q2009 profit of $37.1 million (36 cents/share) after posting a loss of $68 million (minus 78 cents/share) during 2Q2008. While the company said it has reduced its drilling investment, management said for the remainder of the year the Denver-based company will focus its resources on its promising acreage in the Haynesville Shale and the Granite Wash.

BP plc’s quarterly profits fell by half from the same period a year ago, but the company still is managing to surpass cost-cutting targets and increase its oil and natural gas output, CEO Tony Hayward said last week. The company, however, doesn’t think a global economic recovery — or energy demand growth — will happen this year.

BP plc’s quarterly profits fell by half from the same period a year ago, but the company is surpassing its cost-cutting targets and increasing output, CEO Tony Hayward told reporters Tuesday. The company, however, doesn’t think a global economic recovery — or energy demand growth — will happen this year.

Devon Energy plans to combine the company’s International and Gulf divisions into a newly formed Offshore division in a cost-cutting move that will also involve a small reduction to its workforce, the largest U.S.-based independent oil and gas producer said late last week.

Over-the-counter (OTC) energy derivatives trading was spared the recent round of cost-cutting among capital-starved financial institutions because it “was generating significant revenues and represented a rare opportunity for continued profits and growth,” according to a study by consultancy Greenwich Associates.

Over-the-counter (OTC) energy derivatives trading was spared the recent round of cost-cutting among capital-starved financial institutions because it “was generating significant revenues and represented a rare opportunity for continued profits and growth,” according to a study by consultancy Greenwich Associates.

Devon Energy plans to combine the company’s International and Gulf divisions into a newly formed Offshore division in a cost-cutting move that will also involve a small reduction to its workforce, the largest U.S.-based independent oil and gas producer said Thursday.

With “no reason” to accelerate North American natural gas production in a weak gas market, Devon Energy Corp. is dramatically cutting back capital spending this year and will drop its onshore rig count to 32 by the end of March. Devon’s North American rig count peaked at 112 in 2008.