ExxonMobil will reduce its capital spending by 25% to $23 billion in 2016 as it rides out low crude prices, the company announced on Wednesday. The energy giant last month reported its profits plunged by $4.2 billion in the fourth quarter of 2015 and by 50% for the entire year.
CEO Rex Tillerson noted that the company is advancing several downstream and chemical projects to increase feedstock flexibility, produce higher-value products and expand logistics capabilities. The company announced last year it is expanding light crude capacity at its Beaumont, Texas, refinery and may even double the site’s total capacity to 850,000 barrels per day.
ExxonMobil also said it is on track to start up 10 new upstream projects over the next two years with a total production capacity of 450,000 barrels per day.
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