Energy & Science
Exxon’s $10 Billion Spending Cut Won’t Stop Shale Oil’s Growth
- Global oil rout spurring across-the-board spending reductions
- Texas giant’s last austerity program had minimal supply impact
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Exxon Mobil Corp. is slashing $10 billion in spending -- more than any other supermajor oil explorer has cut to weather an unprecedented market collapse -- and yet its production in North America’s biggest shale region is still forecast to rise.
It’s a projection that flies in the face of growing calls for the world’s largest oil producers to show restraint as OPEC and its allies prepare for emergency talks about arresting free-falling prices this week. Exxon on Tuesday announced a 30% reduction in capital spending, the second-largest cut in the company’s modern history. The stock surged more than 6%.