Big Oil Chiefs Tell OPEC They're Adapting To Price Shock
VIENNA, June 3 (Reuters) - Six months after OPEC upended oil markets and sent prices crashing, the head of U.S. oil giant ExxonMobil has an unusual message for the cartel: thanks.
While Exxon and other large oil companies have been forced to slash spending, cut staff and sacrifice tens of billions of dollars in revenue as oil prices halved, they have also watched with quiet satisfaction as upstart rivals from the U.S. shale patch struggle simply to survive through the downturn.
The price collapse has helped shine a sharper light on the highest-cost producers, Rex Tillerson, head of the world's largest publicly traded oil company, told a rare meeting of oil executives and OPEC ministers.
"We're trying to discover where the marginal barrels are around the world. It's important for all of us to know," he said. "We are constantly chasing the price against the cost of supply."
"We live with a lot of uncertainty and we're rewarded for how well we manage it," said Tillerson, one of the best-paid CEOs in the world. If you can't live with uncertainty, "be a librarian", he said.
OPEC decided against cutting its oil production last year to fight for market share with non-OPEC producers, thus aggravating a global oil glut that arose due to a shale boom in the United States. The group is expected to maintain that policy on Friday at its first meeting since the November decision.
Oil prices crashed to as low as $46 per barrel by early 2015 from as much as $115 in mid-2014.
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