Exxon Sees No Oil-Market Rebound Any Time Soon as Glut Persists
- Company foresees four years of flat production through 2020
- Exxon reduced production costs 16 percent to $10.56/bbl in '15
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Exxon Mobil Corp. scaled back production targets and said drilling budgets will continue to drop through the end of next year as the oil market shows no signs of a recovery.
Exxon said output from its 45,000 wells will hover at the equivalent of 4 million to 4.2 million barrels a day through 2020, rather than hitting the old target of 4.3 million as soon as next year, Chairman and Chief Executive Officer Rex Tillerson told analysts at the company’s annual strategy session in New York on Wednesday. Capital spending will fall about 25 percent this year to $23.2 billion and will decline again in 2017 because it makes no sense to drill money-losing wells at current prices, he said.