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
Also in this section
2 April 2026
Alongside a rapid continued build-out of renewables, China’s latest five-year plan stresses the value of domestic hydrocarbon production for energy security and calls for increased Russian gas imports
2 April 2026
The government is taking important steps to revive domestic production, lift investment and benefit from the geopolitical crisis even if more needs to be done in the longer term
1 April 2026
Golden Pass’s startup offers QatarEnergy a timely boost but may also force a difficult choice between honouring disrupted contracts and capitalising on soaring spot LNG prices
1 April 2026
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
