Exxon Mobil Corp. /zigman2/quotes/204455864/composite XOM +0.95% said Tuesday it is reducing its 2020 capex budget by 30% and lowering cash operating expenses by 30% as it works to combat the effect of lower commodity prices due to oversupply and demand weakness caused by the coronavirus pandemic. The oil giant said capital investments will fall to about $23 billion from a previously announced $33 billion. "Our objective is to continue investing in industry-advantaged projects to create value, preserve cash for the dividend and make appropriate and prudent use of our balance sheet," Chief Executive Darren Woods said in a statement. The bulk of the capital spending reduction will take place in the Permian Basin in Texas, reducing the pace of drilling and well completions. Deepwater discoveries offshore Guyana will not be affected and the company will delay the investment decision for the Rovuma liquefied natural gas (LNG) project in Mozambique that was expected later this year. The company is still expecting to meet its projected investment of $20 billion in U.S. Gulf Coast manufacturing facilities made in a 2017 plan. It also expects to reach its proposed U.S. investment of $50 billion over five years that was announced in 2018. The company is maximising production of products needed to combat the virus, including isopropyl alcohol, which is used to make hand sanitizer, and polypropylene, which is used to make protective masks, gowns and wipes. Shares rose 5.4% premarket but are down 42% in the year to date, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.07% has fallen 21% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% has fallen 18%.