comment from Exxon on storageEven Exxon doesnt know what this is going to look like once storage fills up... interesting non the less........ Exxon previously expected to spend up to $33 billion and had spent $26 billion last year.
The company took no action on its shareholder dividend, which analysts had been closely watching. It spent $14.8 billion last year on shareholder payouts.
The company had expected spending of $30 billion to $35 billion for the next several years, but 2021 spending could come down as well, Woods said.
Exxon will quickly lower spending in U.S. shale, where it plunked down $6 billion in 2017 for drilling leases and had expected to produce around 360,000 barrels per day (bpd) this year.
Exxon did not detail its Permian spending cuts, but RBC Capital Markets analyst Biraj Borkhataria estimated it was spending $5 billion to $6 billion a year in the Permian, "and we see no reason why capex and the rig count cannot be reduced by 50% at a minimum in 2020."
Exxon expects world oil demand to be down 25% to 30% in the short term, Woods said.
"Storage is becoming very tight. Logistics are becoming tight. I think we’ll see around the world as logistics get constrained, there will be shut-ins across the industry," Woods said, adding it was "very difficult to predict what those will look like."