Exxon Cuts Capital Budget by 30%, Makes Hand Sanitizer Ingredient
07 Abril 2020 - 8:52AM
Dow Jones News
By Micah Maidenberg
Exxon Mobil Corp. plans to lower operating spending and reduce
its capital budget as the oil company grapples with weaker crude
prices and economies that have been damaged by the coronavirus
pandemic.
Exxon on Tuesday said it would reduce operating costs by 15% in
part by finding efficiencies and lowered its capital investment
plan to $23 billion in outlays for the year from $33 billion.
Much of the cuts in planned capital spending will take place
across its holdings in the Permian Basin, the energy region in
Texas and New Mexico that has attracted a range of producers that
use hydraulic fracturing, or fracking, techniques to extract
crude.
"Reduced activity will affect the pace of drilling and well
completions until market conditions improve," Exxon said of its
operations in the basin.
The company said developing its holdings in the waters offshore
from the South American nation of Guyana remains a key focus.
Exxon said a final decision on developing the Rovuma liquefied
natural gas in Mozambique has been delayed. Previously, the company
had aimed to make a decision on the asset later this year.
The company is making isopropyl alcohol, used to manufacture
hand sanitizer, and polypropylene for masks. It has modified work
practices in response to pandemic, according to a statement.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
April 07, 2020 07:37 ET (11:37 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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