Exxon Steps Up In Oil-Price War by Ramping Down

Author:
Publish date:
Video Duration:
2:31

While a bit late to the party, Exxon Mobil  (XOM) - Get Report is doing what the rest of the world has already been doing: cutting costs and scaling back on expenses.

The oil and natural gas giant on Tuesday announced plans to cut back its multi-year investment efforts in shale, natural gas and deep-water oil production and also said it will cut capital spending this year by $10 billion as the coronavirus pandemic has slammed both energy demand and oil prices.

The largest U.S. oil producer announced that it has set its 2020 capital expenditures at $23 billion, and may reduce that even further if warranted. Exxon had previously announced expected spending plans of as much as $33 billion this year. It spent $26 billion last year.

The company said its biggest spending cuts will focus on its operations in the Permian Basin, “… where short-cycle investments can be more readily adjusted to respond to market conditions, while preserving value over the long term.”

That move comes on the heels of a White House meeting of major oil and energy company executives, who have been grappling not only with the pandemic’s impact on global energy demand but a war of brinkmanship between Saudi Arabia and Russia that has produced a global oil supply glut and plunged prices to depths not seen since the 2008 financial crisis.

Catch up on the Latest Videos on TheStreet!

Retirement Daily: How to Plan for Retirement During the Coronavirus Pandemic

Related Videos