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By David Wethe

(Bloomberg) — Oil and natural gas drillers in the U.S. and Canada will cut more than $35 billion from their exploration and production budgets this year, the deepest reduction of any region for the second consecutive year, according to Barclays Plc.

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An estimated 27 percent cut in North American spending in 2016 to $96.6 billion comes after budgets shrunk 35 percent last year during the worst crude market downturn in decades, J. David Anderson, an analyst at Barclays Plc, wrote Wednesday in a note to investors. West Texas Intermediate, the U.S. crude benchmark, has fallen more than 70 percent since a high of $107.26 a barrel in June 2014.

“Capital discipline looks good on paper, but hard to execute, especially as oil prices fall,” Anderson wrote. “With oil prices still uncertain, the outlook for 2016 upstream spending is still a moving target, particularly for North America.”

Globally, explorers and producers are expected to cut spending 15 percent to $444 billion this year after cleaving budgets by more than $100 billion 2015. It’s the first “double dip” spending drop since 1986 and 1987, according to the note. The industry has also slashed more than 250,000 jobs around the world to cope with crude that dipped below $30 a barrel this week for the first time in more than a decade.