Unable to play video. HTML5 is not supported! Things haven’t been this bad for the world’s biggest oil stock since Ronald Reagan became US president. But brace yourself, 2019 may not be much better. Exxon Mobil, down 22 per cent for the year, is headed for its worst annual performance since 1981, when the US was in recession and a 20-year crude glut was just beginning. The decline comes as Exxon pursues one of the largest restructurings in its modern history, a seven-year, US$200 billion (NZ$297 billion) push for oil in South America and natural gas in Mozambique and Papua New Guinea. With one of corporate America’s strongest balance sheets, the concern isn’t whether Exxon can fund the rebuild. The question from investors: What can you do for me in the meantime? The awkward answer may be "not much," at a time when oil prices are plummeting. As rivals restrain growth and buy back stock, Exxon is the one "with the bull’s-eye on their back", said Mark Stoeckle, who manages US$2.6b including Exxon shares at Adams Express Co. "They weren’t terribly efficient in the last cycle. What do they do differently? This time it has to work." READ MORE: […]
