Dick Young, Paris, France
In the Wall Street Journal’s logistics report, Christopher M. Matthews writes:
Exxon Mobil Corp. XOM 1.90% said Tuesday that it would cut its 2020 capital spending by 30% as global demand for oil is sapped by the coronavirus.
The largest portion of the $10 billion in cuts will be in the Permian Basin, the largest U.S. oil field in Texas and New Mexico. Exxon said it would evaluate how the cuts would affect production.
“We haven’t seen anything like we are facing today,” Chief Executive Darren Woods said on a call with reporters Tuesday morning.
Exxon didn’t announce any cuts to its shareholder dividend, which it spent nearly $15 billion on last year. Mr. Woods said the company would preserve cash for the dividend, the size of which is determined by Exxon’s board of directors.
With the announcement, Exxon became the latest major oil firm to significantly reduce its budget in response to a crash in oil prices caused in large part by the response to the virus. Rival Chevron Corp.said last month it would cut its spending by $4 billion, or 20%. Large, international oil companies and U.S. shale producers have collectively slashed budgets by tens of billions of dollars.
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