Oil Production

Following a decrease in oil demand due to the Covid-19 pandemic, Exxon Mobil announced a global cut of its workforce by 15%. Around 14,000 jobs worldwide could be affected, including contractors.

Prior to the pandemic, Chief Executive Darren Woods pursued an ambitious spending plan to boost oil output in the belief a growing global middle class would demand more of its products.

The U.S. District Court for the District of Columbia has ordered that the Dakota Access oil pipeline must be shut down and emptied of oil within 30 days by August 5.

The court stated that the National Environmental Policy Act requirements have not been met with the existing federal permit for the pipeline.

Mike Faith, a tribal chairman for the American Indian tribes that fought against the pipeline for the past years has stated that "Today is a historic day for the Standing Rock Sioux Tribe and the many people who have supported us in the fight against the pipeline" adding that "This pipeline should have never been built here. We told them that from the beginning".

Morgan Stanley has announced through their updated Environmental and Social Policy Statement that the investment bank won't finance "new oil and gas exploration and development in the Arctic" anymore. Though this policy is only aimed at direct financing of these projects and does not prevent financing for companies that engage in these projects.

Oil producers have started paying buyers to take the oil out of their hands, as storage capacity is running low. A worldwide overproduction of oil is currently recorded due to a decline in demand following the spread of the coronavirus.

The lowest recorded price for a barrel (around 159 liters) of West Texas Intermediate oil was recorded at minus $37.63.