Exxon has exceeded a target of reducing operating expenses by $1 billion and capital budget spending by $10 billion, he wrote. But the COVID-19 pandemic has cut oil demand by about 20 per cent, he said, delivering a "devastating impact" on the oil business. Woods said the demand loss is five times the decline of the 2008 financial crisis, but "industry under-investment today will increase the need for our products in the near future." All oil companies face the same loss of demand, but Exxon has the burden of promising to keep its huge dividend without adding new debt, said Raymond James analyst Pavel Molchanov. Its shares fell 1.6 per cent to $33.14 on Wednesday as oil prices declined on worries that the COVID-19 infections are on the rise globally.

Source: CBC News October 22, 2020 13:17 UTC