ExxonMobil is joining the parade of oil companies reining in spending in this new era of cheap oil.
The largest US oil company said Tuesday it will slash its 2020 spending by 30% to $23 billion in light of the recent crash to 18-year low crude prices. That exceeds the 20% drop in spending detailed by rival Chevron (CVX) last month.
Exxon is also cutting operating expenses by 15%, including lower energy costs. No specifics around potential layoffs were detailed.
“While COVID-19 has had a significant impact on the global economy, we are confident that trade, transportation and manufacturing will recover,” Exxon CEO Darren Woods said in a statement.
Exxon (XOM) said the largest chunk of its spending cuts will focus on the Permian Basin, the treasured West Texas shale oilfield. That’s because shale oilfields can more easily be turned on and off.
Exxon stressed that its “world-class deepwater discoveries” off the shore of Guyana “remains an integral” part of the company’s long-term growth plans. Although some Guyana projects remain on track, Exxon said other 2020 activities could be delayed.
And Exxon has postponed a final investment decision for a liquefied natural gas (LNG) project in Mozambique.