Exxon to cut activity in Permian Basin as oil prices plummet

Exxon Mobil plans to reduce the number of oil rigs operating in an oil-rich region in the Southwest and may cut planned capital expenditures as the spreading coronavirus saps energy demand.

According to

, Exxon announced that it is planning to cut Permian Basin production growth by about 10% over the next two years.

The company still plans on working to triple its output from the area by 2024.

The price of a barrel of oil has fallen more than 20% since the start of the year, and 8% in the last month, with energy demand expected to shrink as the outbreak drags on the global economy.

Oil prices were already under pressure due to signs of a slowing economy at home and abroad.

Energy demand dropped dramatically as flights to and from China halted and factories slowed production.