ExxonMobil is looking to significantly reduce spending due to the market conditions caused by the COVID-19 pandemic and commodity price decreases.

ExxonMobil announced Monday that it is looking to “significantly reduce” spending due to the market conditions caused by the COVID-19 pandemic and commodity price decreases.

“Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term,” Darren Woods, the chairman and chief executive officer of Exxon Mobil Corporation, said in a company statement.

“We will outline plans when they are finalized … We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong,” he added.

Woods highlighted that Exxon has faced numerous market downturns throughout its history and said the business has experience operating in a sustained low-price environment.

Exxon is closely monitoring the COVID-19 pandemic and has “adjusted” work arrangements to “ensure a healthy work environment and support communities where we operate”, according to a company statement.

Oil prices dropped significantly after OPEC+ failed to reach an agreement at its latest meeting on March 6. They were already strained due to the demand impact of the recent coronavirus outbreak, which has registered more than 167,000 confirmed cases and over 6,600 deaths globally as of March 16, according to the latest data from the World Health Organization. At the time of writing, Brent is hovering around $30 per barrel.

On March 5, Woods told investors that Exxon is planning capital expenditures of between $30 billion and $35 billion annually through 2025. For 2020, the company was said to be anticipating an investment level of up to $33 billion, “depending on the progress of individual projects”.

Exxon describes itself as one of the largest publicly traded international energy companies. The business traces its roots back to 1859, according to Exxon’s website.

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