Exxon Mobil Corp on Tuesday throttled back a multi-year investment in shale, LNG and deep water oil production and will cut planned capital spending by 30 percent this year as the COVID-19 pandemic saps energy demand and oil prices.
Oil companies are reversing 2020 spending and production increases by an average of 20 percent as countries limit air travel, order businesses to close and tell residents to stay home to curb the spread of the virus. In a one-two punch to suppliers, crude prices have sunk nearly 60 percent this year and demand for fuels is falling sharply.
"We haven’t seen anything like what we’re experiencing today," Chief Executive Darren Woods said on Tuesday as Exxon detailed spending cuts, the last of the oil majors to do so.