what happened
Shares of ExxonMobil (NYSE: XOM) The energy giant rose 5.1% on Thursday after confirming its long-term commitment to residual fuel production, despite a more streamlined spending structure.
So what
CEO Darren Woods told Exxon employees to expect scattering, as lower oil prices are involved in the industry. “This is a difficult time,” Woods said. “We are making tough decisions, some of which will leave the company of friends and colleagues.”
Job Cut Exxon Mobil could help weather the coronavirus-driven industry downturn. Image Source: Getty Images.
Woods noted that despite the rapid growth of renewable energy sources, oil and gas estimates will be about 50% of the world’s energy energy by 2040, down from about 60% today. Woods says Exxon will help supply this energy in the coming decades, due to its vast scale, distribution network and technical expertise.
Now what
Importantly, Exxon is on track to reach its cost reduction targets, including a 15% reduction in its cash operating costs and a deferral of more than 10 10 billion in capital costs. Woods says a sharp drop in oil demand due to global auto sales and a plunge into airline flights necessitates a reduction in costs to keep Exxon economically viable.
Still, Woods is adamant that Exxon will play a key role in delivering reliable, cost-effective energy for decades to come. “I can think of no purpose other than to help people and communities around the world grow in prosperity and achieve their aspirations for a better life through affordability,” he said.
