Apache, Williams scale back ‘09 capital spending

Natural gas and oil production companies Apache Corp. and Williams Cos. said Thursday they would rollback spending this year for developing new energy projects following the steep decline in commodity prices.

If the current downward trend in commodity prices continues, we may scale back spending even more, and our production growth likely will land in the bottom half of our projected range,” said Steven Farris, Apache Chairman and Chief Executive, in a statement.

Apache’s exploration and development budget for 2009 currently stands at range of $3.5 billion to $4 billion. Last year, the Houston-based company set aside about $4.6 billion for developing new wells and gas properties.

Williams reduced its capital expenditure target for the year to between $2.2 billion and $2.5 billion, down from a prior forecast of $2.8 billion to $3.1 billion. Total capital investment in 2008 was $3.6 billion.

MarketWatch