The Development Drilling Programs, which saw a $1.5B cut in...

The Development Drilling Programs, which saw a $1.5B cut in capex, will now focus on the Eagle Ford and Bakken and defer significant investment in other "emerging" North American unconventional plays. Hardest hit shale plays include the Permian, Niobrara, Montney and Duvernay. ConocoPhillips noted that it could ramp up or down activity in the unconventionals, likely depending on oil prices.

The Major Projects capex spending was cut $1.0B. This decline is related to lower spending at the APLNG and Surmont Phase 2 projects, which peaked in 2014, not really related to oil prices.
Conclusion

Basically, an across the board cut in spending. This news should not come as much surprise. With WTI oil below $65 per BBL, some of ConocoPhillips's newer shale plays simply do not make much economic sense. However, it is good to see that the company is focusing on getting its cash flows to match capex spending and dividends. ConocoPhillips had been adding incremental debt to its balance sheet as these were slightly exceeding cash flows.


OPEC will be pleased as the trickle of shale oil spending cuts begin