At Today’s Oil Prices, Exxon’s Money Machine Is Broken
Exxon’s money machine is broken. At least at these oil prices. The oil giant posted a loss of $680 million today, its second quarterly loss in a row, following a $1 billion hit in the second quarter. Exxon received an average $37 per barrel for its U.S. crude oil in the third quarter, a big improvement on its average $21/bbl in the second quarter — but not enough. CEO Darren Woods in a prepared statement said the company was taking bold measures to navigate the “unprecedented down cycle.” Those moves include broad layoffs that will hit some 14,000 positions out of 74,000 nationwide, including 1,900 cuts to come in the U.S., mostly at its campus in The Woodlands, north of Houston. Already last month Exxon suspended employee retirement plan matching. During the last oil downturn of 2016, the company chose to maintain a high level of investment — confident that as the cycle turned up its steadfastness would be rewarded. Not this time. Exxon during 2020 has slashed its...