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On Tuesday, Exxon Mobil Corp. announced that it was reducing its 2020 capital spending by 30 percent.

On Tuesday, Exxon Mobil Corp. announced that it was reducing its 2020 capital spending by 30 percent, according to The Wall Street Journal.

The demand for oil has been decimated as the coronavirus continues to spread. Furthermore, a price war between Saudi Arabia and Russia was another slap in the face for the industry and for the price per barrel of oil.

The total cut in capital spending amounts to $10 billion. The cuts are going to affect the Permian Basin, the largest US oil field in Texas and New Mexico. “We haven’t seen anything like we are facing today,” Chief Executive Darren Woods said.

Woods also stated that oil production in 2021 could fall by as much as 150,000 barrels per day in the region. The company still hasn't made changes to its shareholder dividend which cost the company $15 billion last year.

On Tuesday, Exxon Mobil Corp. announced that it was reducing its 2020 capital spending by 30 percent.

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