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Photo: Bruce Bennett/Getty Images
ExxonMobil is slashing planned capital spending this year by 30%, with the biggest reductions coming in the U.S. shale patch, the company announced on Tuesday.
Why it matters: It's the latest sign of how oil producers large and small are getting hit by the price collapse and demand cratering due to COVID-19.
Driving the news: Exxon now expects capital spending this year to be roughly $23 billion instead of $33 billion.
- "The largest share of the capital spending reduction will be in the Permian Basin, where short-cycle investments can be more readily adjusted to respond to market conditions, while preserving value over the long term," the company said.
The big picture: It follows spending rolled out by Shell, BP, Chevron and others in recent weeks. The announcement adds specifics to Exxon's warning in mid-March that it intended to significantly cut back this year.
The intrigue: Per Bloomberg, "The scope of the cuts exceeded the expectations of some analysts including those at Goldman Sachs Group Inc. who forecast a reduction to $29 billion."