While spending is taking a dramatic hit, Royal Dutch Shell's chief executive said Thursday there's no reason to overreact to the bear market for crude oil.

Shell followed precedent set by its supermajor rivals by announcing a spending cut of about $15 billion as low oil prices crimp the company's momentum.

Chief Executive Ben van Beurden, however, warned against panicking as oil prices continue trading below the $50 per barrel mark, less than half the June price.

"We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices," he said in a statement. "Shell is taking structured decisions to balance growth and returns."

The company, he said, is delivering where it counts. Upstream, or production, income fell 30 percent year-on-year to $1.73 billion, but earnings from refinery operations nearly tripled to $1.5 billion.

Third quarter earnings increased more than 30 percent year-on-year, which van Beurden at the time said was the result of creating value from a streamlined portfolio.

Shell credited much of its production growth from the third quarter to developments in the deep waters of the United States, West Africa and Malaysia.

British counterpart BP enacted a pay freeze after shedding staff from its North Sea operations as it, and others, struggle in the weak oil market. Van Buerden said Shell was prepared for lower prices, but the company wouldn't move through the new environment unscathed.

"The agenda we set out in early 2014 to balance growth and returns has positioned us well for the current oil market downturn," he said. "However, lower oil prices and the impact of our 2014 divestments will likely reduce this year's cash flow."