By Joshua Cain
Exxon Mobil CEO Rex Tillerson said in an interview with CNBC Wednesday that the oil and gas giant could remain “successful” even if oil prices continued to plummet.
Tillerson said that because many of the company’s biggest projects take years to complete, Exxon Mobil tests its investment across a range of prices between $120 and $40 per barrel.
“All of the investment decisions we take have been tested across a range of pricing that accommodates these types of price swings,” Tillerson said. “What you do is ensure that you can be successful at the bottom of the price swing.”
Tillerson also noted that a lower oil price might “sort out” the market, edging out smaller unconventional companies that have taken advantage of the low barrier to entering the industry.Read more