ExxonMobil bets big on Russia despite drop in spending

The drop in oil price and increasing costs have led the US company to minimise spending by 12%, but not in Russia

ExxonMobil's announcement on 4 March that it will slash capital spending this year by 12% came as no shock; the drop in the oil price amid falling demand and rising costs has forced all its peers to do likewise. What is surprising, though, is that this most conservative of US corporations continues to bet big on Russia. On 4 March, Rex Tillerson, the company's chief executive, briefed a gathering of investors and analysts on prospects and strategy. The US supermajor plans to further cut its capital expenditure budget in 2015 by 12% to $34 billion, down from a record $42.5bn in 2013. It had already announced plans to reduce capex to $37bn this year. Annual capital and exploration expenditures