Oil firms are facing some tough decisions; spend on planned capital projects or keep investors happy with dividends. When times are good they can do both, but with the plunge in prices it will be one or the other for many firms and possibly cuts to both. Eric Nuttall of Sprott Asset Management
is predicting a 15 per cent cut in capital spending next year with potentially a similar cut in dividends if the market fails to improve. There are concerns that some of the most leveraged firms may not survive if the oil price continues to stay lower for an extended period. Read the full story.