The Bakken Vs Saudi: ExxonMobil's Decision -- June 12, 2020

Re-post, because I think it tells a story:

Saudi's petrochemical unit losing money: link here.

Saudi Arabia's state-controlled petrochemical giant Sabic last month declared a loss of 950mn riyals ($253mn) in the first quarter of this year, compared with a profit of $909 million in the first quarter of 2019.

The loss was partly the result of a fall in the average prices of its products.

Sabic is planning to cut its capital expenditure, in line with moves by other energy and petrochemical producers.

ExxonMobil has lowered its 2020 capex budget by 30pc, with the bulk of the reduction going to its Permian onshore shale operations in the US.

BP's spending cuts for this year include a reduction of around $1bn on short-cycle onshore investment and deferrals of exploration activity. Shell, Total and Chevron have also announced sharp reductions in their 2020 capex budgets.