{"id":52253,"date":"2020-04-07T08:19:10","date_gmt":"2020-04-07T13:19:10","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52253"},"modified":"2020-04-07T08:19:14","modified_gmt":"2020-04-07T13:19:14","slug":"exxon-cuts-2020-capex-by-30-on-expectations-for-25-30-demand-drop","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52253","title":{"rendered":"Exxon Cuts 2020 Capex By 30% On Expectations For 25-30% Demand Drop"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/energy\/exxon-cuts-2020-capex-30-expectations-25-30-demand-drop\">Exxon Cuts 2020 Capex By 30% On Expectations For 25-30% Demand Drop<\/a><\/h3>\n\n\n\n<p>With oil trading at prices that are uneconomical even for the world&#8217;s biggest majors, on Tuesday morning Exxonmobil announced it cut its 2020 Capex by 30% and cash Opex by 15% as the CEO said he expects a record 25-30% demand drop this year.<\/p>\n\n\n\n<p>The company said that the largest share of Capex reductions, or roughly 30% of total, would be in the Permian Basin. As a result of the spending cuts, the company will a production hit of 100,000 to 150,000 barrels\/day from the Permian Basin in 2021 due to its spending reductions, CEO Darren Woods says on call with reporters, adding that in 2020 the production cut would be a modest reduction of only 15,000 barrels, which will hardly be enough an OPEC+ demanding US shale producers join the global production cuts now not in one year.<\/p>\n\n\n\n<p>Among the other Exxon announcements:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Expects to meet projected investments of USD 20bln on US Gulf Coast manufacturing facilities<\/li><li>Expects to reach proposed US investments of USD 50bln over 5yrs announced in 2018<\/li><li>Mozambique project, expected later this year, has been postponed<\/li><li>Current operations onboard Liza Destiny production vessel are undisturbed<\/li><li>Capital allocation priorities remain unchanged<\/li><li>Long-term fundamentals that underpin Co&#8217;s business plans are unchanged<\/li><li>Globally, the company sees industry refinery output declining in-line with demand and storage available<\/li><\/ul>\n\n\n\n<p>We\u2019re in a \u201ccapital-intensive commodity business that\u2019s used to ups and downs in price cycles. However, I have to say we haven\u2019t seen anything like what we\u2019re experiencing today&#8221; the CEO said, concluding ominously that\u00a0<strong>&#8220;these are definitely challenging times for all of us.&#8221;<\/strong><\/p>\n\n\n\n<p>Exxon&#8217;s stock price rose by 7% on the news, although it remains about 40% below levels it traded at at the start of the year. The company&#8217;s dividend yield remains a above 8% &#8211; a staggering number for what was not that long ago one of the world&#8217;s largest companies.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/xom%204.7.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Exxon Cuts 2020 Capex By 30% On Expectations For 25-30% Demand Drop With oil trading at prices that are uneconomical even for the world&#8217;s biggest majors, on Tuesday morning Exxonmobil announced it cut its 2020 Capex by 30% and cash Opex by 15% as the CEO said he expects a record 25-30% demand drop this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[2661,1996,4390,1729,3640,4318],"class_list":["post-52253","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-capex","tag-capital-expenditures","tag-exxon","tag-oil-and-gas-industry","tag-permian-basin","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52253"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52253\/revisions"}],"predecessor-version":[{"id":52254,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/52253\/revisions\/52254"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}