BHP Billiton keeps chin up in weak market

While its petroleum portfolio expanded, notably in the United States, BHP Billiton said Wednesday it would throttle future developments in the weak oil market.

"With higher oil prices expected over the medium term, we believe deferring development will create more value than producing today," BHP Billiton Chief Executive Officer Andrew Mackenzie said in a statement. "Our high-quality acreage and excellent operating performance, with industry-leading drilling costs, gives us a strong platform from which to build."

Full production from the Australian company, including in its mining sector, increased 9 percent for the nine months ending in March. Petroleum production increased 6 percent to a record 193 million barrels of oil equivalent, supported in large part by operations in the Lower 48 U.S. states.

The company singled out the Permian shale basin in Texas as a bright spot in its onshore portfolio. Total U.S. onshore drilling and development spending totaled $3 billion through March and the company said it planned to spend roughly $3.4 billion in the current fiscal year.

Energy companies are spending less on exploration and production as lower crude oil prices crimp operating expenses. Oil services company Baker Hughes said Friday the number of rigs in service in the United States was down nearly 4 percent to 988 from the week ending April 3.

BHP said its rig count declined 34 percent to 17 for the period through March. It said, however, the decline will not impact production expectations for the year.

"We are confident that shale liquids volumes will rise by over 50 percent in the period," the company said. "We continue to review our drilling and development program and will exercise the flexibility within our shale portfolio to maximize value."