ExxonMobil moves to cut spending due to ‘unprecedented environment’

U.S. oil major ExxonMobil is looking to significantly reduce spending as a result of market conditions caused by the COVID-19 pandemic and commodity price decreases.

The oil price war and the sudden and sharp decline in oil prices as well as the global outbreak of the coronavirus have pushed oil and gas operators to reconsider their spending plans for this year. With this move, ExxonMobil has joined a number of its peers including Apache, Murphy Oil, Noble Energy, Premier Oil, and Husky Energy to name a few.

Darren Woods, chairman and chief executive officer of Exxon Mobil Corporation, said: “Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term.”

“We will outline plans when they are finalized.”

Woods said that ExxonMobil has faced numerous market downturns throughout its long history and has experience operating in a sustained low-price environment.

“We remain focused on being a safe, low-cost operator and creating long-term value for shareholders,” said Woods.

The company said it is closely monitoring the COVID-19 pandemic and has adjusted work arrangements to ensure a healthy work environment and support communities where we operate.

“We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong,” said Woods.

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