US Oil Giants Warn Cutbacks Are Coming

Sunday, November 2, 2014
By Paul Martin

Anna Driver
BusinessInsider.com
Nov. 2, 2014

HOUSTON (Reuters) – Top U.S. oil producers, which already were reining in spending before crude prices started to slip in June, are now looking to trim more fat from their budgets while reminding investors they must spend to grow.

Exxon Mobil Corp on Friday it would keep its current spending plan intact, though it is about 15 percent less than 2013. ConocoPhillips said it will spend less money next year, and Chevron Corp said it is looking for budget “flexibility.”

Crude oil prices have slumped 25 percent since June as global supplies grow and demand weakens.

Exxon, which sets budgets using a long-term horizon, still expects to spend a little bit less than $37 billion a year from 2015 to 2017, an executive told investors on Friday on a conference call.

“We always are mindful of what’s happening in the near future but I keep on pulling back that we are a long-term investor,” said Jeff Woodbury, Exxon’s head of investor relations.

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