ExxonMobil reduces tens of billions of dollars in spending

 As the New Coronavirus epidemic caused weak demand and oversupply, lower commodity prices, ExxonMobil cut capital expenditures by 30% in 2020 and reduced cash operating expenses by 15%. The company expects a capital investment of approximately USD 23 billion in 2020, which is lower than the previously announced USD 33 billion.

The largest share of capital expenditure reduction will be in the Permian Basin, and some chemical project expansion plans will also be adjusted. ExxonMobil said: "The schedule of the downstream and chemical facility expansion plans in the company's portfolio will be adjusted to achieve efficiency, slow down spending, and better align with demand returns for commodities.

ExxonMobil ’s planned major chemical projects include a joint venture cracking plant with Sabic near Corpus Christi, Texas, which is scheduled to begin production in 2022. The cracking plant in Guangdong, China, is scheduled to start construction in 2023. The company's main derivative products include a 450,000-ton / year polypropylene plant in Baton Rouge, Louisiana, and a 450,000-ton / year propylene-based elastomer plant in Baytown, Texas The 350,000-ton / year linear alpha-olefin plant is expected to be put into operation in 2022.

Darren Woods, Chairman and CEO of ExxonMobil, said: "Although the New Crown Outbreak has had a significant impact on the global economy, we believe that trade, transportation and manufacturing will recover. ExxonMobil will Continue to invest in these projects. These projects will enable us to support economic recovery and gain value for shareholders. "

The company said it is producing the most important products, including isopropyl alcohol used to make hand sanitizer and polypropylene resin used to make protective masks and protective clothing. ExxonMobil expects that global industrial refinery output will decline as demand and available storage decline, and as demand recovers, ExxonMobil will maintain its ability to resume normal operations.