ExxonMobil cuts capital spending on falling oil prices

Exxon Mobil Corp. told analysts in New York that it planned capital spending of about $34 billion in 2015, down from $38.5 billion in 2014.

For 2016 and 2017, investments, including on exploration for oil and gas, were projected at around $34 billion annually, said the world's largest publicly traded oil and gas company.

That was $3 billion less per year than in previous forecasts.

Crude oil prices have dropped more than 50 percent since last June, pushing energy companies and their contractors to cut back spending.

Rex Tillerson, ExxonMobil chairman and chief executive, noted the cyclical nature of the oil and gas industry.

"We remain focused on the fundamentals," he told analysts. "We've been here before."

ExxonMobil said it expects to start up 16 major oil and natural gas projects during the next three years.

"ExxonMobil has a deep and diverse portfolio of opportunities around the world and a total resource base of more than 92 billion oil-equivalent barrels,” Tillerson said in a statement.

"We have unparalleled flexibility to select and invest in only the most attractive development projects."

ExxonMobil said it expected to increase daily production to 4.1 million barrels in 2015, an increase of 2.5 percent from the prior year, and to 4.3 million barrels by 2017.

The company said it was counting in part on projects in Angola, Canada, Nigeria and Indonesia for the higher output.

Tillerson said the projections were based on a Brent crude price of $55 a barrel. Brent was trading Wednesday at $60.58 a barrel in afternoon trade in London.

According to analysts, ExxonMobil is the oil company best-positioned to weather the decline in crude prices.