US oil giant ExxonMobil has announced it will cut $10bn of capital spending in 2020 in response to the coronavirus pandemic, a 30% decrease on its planned $33bn spending for the year.

At the same time, the company said in a statement it would cut its operating expenses by 15% and could make further reductions if needed.

ExxonMobil chairman and CEO Darren Woods said: “The long-term fundamentals that underpin the company’s business plans have not changed – population and energy demand will grow, and the economy will rebound.

“Our capital allocation priorities also remain unchanged. Our objective is to continue investing in industry-advantaged projects to create value, preserve cash for the dividend and make appropriate and prudent use of our balance sheet.”

Like Chevron, and as predicted by analysts at GlobalData, ExxonMobil said it would make most of its spending cuts in the US Permian Basin. It explained this was because short-cycle investments there could be more easily altered with market conditions.

In the statement, a company spokesperson said it will monitor demand levels, but in the meantime, “reduced activity will affect the pace of drilling and well completions.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company also deferred a final investment decision on the Rovuma liquefied natural gas project in Mozambique, which it expected to make later this year. It did not give a new date.

However, ExxonMobil said it would not change its timeline for developing reserves offshore Guyana. It will also meet its investment target of £20bn in the US Gulf Coast.


See the other companies to make capital expenditure cuts here.