Following is some supply disruption data: North American rig...

Following is some supply disruption data:
North American rig count: Rig count 16/1/16 = 1676 now 650 change last week - 14
An estimated $380 billion worth of oil and gas projects have been cancelled since 2014, according to a new estimate from Wood Mackenzie. The downturn in oil prices have hit projects all around the world, and Wood Mackenzie says that 68 major projects were scrapped in 2015, which account for around 27 billion barrels of oil and natural gas.
In the latter half of 2015 when oil prices fell once again following a modest rebound in the spring, the industry pushed off 22 major projects worth 7 billion barrels of oil equivalent. “The impact of lower oil prices on company plans has been brutal. What began in late-2014 as a haircut to discretionary spend on exploration and pre-development projects has become a full surgical operation to cut out all non-essential operational and capital expenditure,” Wood Mackenzie analyst Angus Rodger said in a statement.
The cancellations will lead to dramatically lower oil production in the years ahead. An estimated $170 billion in capex spending was slashed for the period between 2016 and 2020. All told, industry cuts will translate into at least 2.9 million barrels of oil production per day (mb/d) that will not come online until at least sometime next decade.
China's Cnooc said that it would cut oil and gas production this year due to low prices. The company is targeting 470 to 485 million barrels of oil equivalent (boe), down from 495 million boe last year. China’s National Development and Reform Commission admitted that Chinese oil producers have breakeven costs that are higher than $40 per barrel.
Oil major Brazilian Petrobras is now the most indebted oil company in the world, with debt loads exceeding more than $125 billion. With such high levels of debt, the company cannot invest what it needs to help grow production. Last week the company lowered its 2020 production target to reflect lower spending.