Exxon Mobil Corporation (NYSE:XOM) has pulled back from its plan to increase spending to bolster its gas and oil production by 2025 following three consecutive quarterly losses. The company is now planning to cut its assets book value by $20 billion as the Texas oil company reassess its strategy for the next decade.

Exxon Mobil lost $2.3 billion in three quarters

For three quarters straight this year the oil giant lost over $2.3 billion as the pandemic affected fossil-fuel demand. The company has now slashed its spending guidance for the next five years. Exxon Mobil plans to spend around $19 billion or less in 2021 and between $20 billion and $25 billion per year from 2022 to 2025. Previously the company had planned to spend over $30 billion per year in capital expenses through 2025. The company has also said that it will stop investing in some natural gas assets. Additionally, it anticipates a huge write-down of around $17 billion to $20 billion in Q4 2020.

The plans to cut spending are a correction of CEO Darren Woods’ plans to spend around $230 billion to boost profits. According to Woods’ 2018 plan the company could add one million oil and gas barrels by 2025. However, it seems this plan was ill-timed because the COVID-19 pandemic wreaked havoc on old demand causing prices to plunge this spring.

Exxon reassessing oil and gas production targets

The company expects to double profits by 2027 but has not issued a certain target for oil and gas production increase. In recent months executives have reiterated that Exxon Mobil is reassessing production targets. In a statement, Woods said that the oil giant was focused on improving earnings and solidifying its balance sheet in readiness for future price swings and keep its dividends causing around $15 billion annually.

In October the company said that it will cut its workforce by around 15% including full-time and contract employees. The company trimmed future oil prices expectation for the next seven years by 11% to 17% as part of its financial planning.