Posted on 02/02/2016 6:40:42 AM PST by Citizen Zed
Exxon Mobil Corp (XOM.N) on Tuesday reported its smallest quarterly profit in more than a decade and said it will cut 2015 spending by one-quarter and suspend share repurchases as it copes with a prolonged downturn in crude prices.
Shares of Exxon, the world's largest publicly traded oil company, fell 2.2 percent in premarket trading to $74.59, hit by a more than 4 percent slide in the price of crude oil.
Crude oil prices have dropped about 70 percent from the 2014 high over $100 barrel. Current prices at around $30 barrel have triggered a wave of spending cuts as oil companies slash investment in new wells and projects to conserve cash.
Exxon sees capital spending at around $23.2 billion this year, a 25 percent drop from 2015.
"While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management," Rex Tillerson, the chairman and chief executive officer, said in a statement.
(Excerpt) Read more at reuters.com ...
And the anti-oil people were also saying that we shouldn’t drill because it would be years before we see significant production.
Its either ‘feast or famine’ for the oil companies ,,
now our .gov will complain about the lost tax revenue...
Kind of like Wyoming losing over $1 billion in tax revenue when the largest coal mine in the state got shutdown.
The oil industry has always been that way.
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