ExxonMobil is slashing capital expenditures by over $US4 billion this year.
The world’s largest oil company is holding its analyst meeting on Wednesday and disclosed the cut in spending plans in presentation materials.
In its fourth quarter earnings released last month, ExxonMobil said production decreased 3.8% year-over-year on an oil-equivalent basis. Excluding the impact of the expiry of its Abu Dhabi onshore concession, production decreased 0.7%.
The presentation reminds investors of the plunge in crude oil prices that firms say have been been out of their control.
And that capex will fall, in 2015 and beyond, with virtually no plans for acquisitions forthcoming.
Here’s ExxonMobil’s production outlook, which underscores what’s going on in the US oil industry.
Even though companies are cutting spending, and rig counts are tumbling, production is surging in the opposite direction.
However, natural gas production is expected to fall 2% through 2016.
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