BP, Total Tell Suppliers to Cut Costs Up to 40% Amid $50 Oil

(Bloomberg) — BP Plc, Total SA and Royal Dutch Shell Plc are asking oilfield service companies to cut project costs by up to 40 percent as the industry battles its worst slump since the mid-1970s.

Executives at contractors including Technip SA, CGGVeritas and Saipem SpA said Europe

Projects in the Canadian oil sands, where reserves are hard to access, and marginal shallow-water fields are being trimmed, slashing the world drilling-rig total to a three-year low. The 64 percent plunge in oil from its July peak to close to $50 a barrel is deterring new investment and leaves the services industry, worth more than $60 billion, vulnerable as the order backlog shrinks.