Exxon Mobil’s oil and gas reserves have dropped by over a third in the last year as the Coronavirus pandemic destroyed global oil prices.
The company also reported that it would cut 15% of its global workforce by the end of 2021.
The largest U.S. oil producer is reeling from the sharp decline in oil demand and a series of bad bets on projects when prices were much higher. It slashed project spending by a third last year, cut jobs and added to debt to cover its dividend.
Total reserves for all products fell to 15.2 billion barrels of oil and gas at the end of 2020 from 22.4 billion the year before, mostly driven by oil sands in Canada and U.S. shale gas properties, according to a regulatory filing.
The plunge in the value of oil and gas properties was worse than during the 2014 through 2016 downturn, when Exxon had a 4.8 billion cut in its reserves.
It reported a net annual loss of $22.4 billion for 2020 compared with a full-year profit of $14.34 billion in 2019. Exxon churned out profits since it merged with Mobil in 1999 and through the 1980s oil bust.
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