NEW YORK (AP) — Exxon Mobil says it 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. The price of a barrel of oil has fallen more than 25% 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 in the U.S. and abroad. Energy demand dropped dramatically as flights to and from China halted and factories slowed production.
Exxon to cut activity in Permian Basin as oil prices plummet
Laura Paskus, New Mexico In Depth
/
In northwestern New Mexico, energy companies drill for oil within shale deposits. Since this photo was taken in late 2014, exploration there has slowed.