The US oil and gas industry will probably see a $50 billion cut to its budget next year, as it cuts $8 billion from its $30 billion budget for the first time since the end of the Cold War, the latest sign that the industry is taking on a major restructuring.

The cut to $40 billion will be phased in over three years, but a deal has yet to be struck to keep ExxonMobil afloat through the decade.

In an interview with CNBC, Exxon CEO Rex Tillerson said the cut would help offset the cost of the company’s massive cleanup work and reduce costs for customers, including Alaska, in the long run.

“Our business is about doing things the right way,” Tillerson said.

“We want to be able to do the things that we do the best.

It’s not about being able to spend more money on our products or to spend less money on the operations of our business.”

Tillerson said the company would be able continue operating on its current path with the help of its oil and natural gas assets, which have been depleted.

Exxon has about $4 trillion of reserves, including reserves of about 2.8 billion barrels of oil and more than 4.3 billion barrels in natural gas.

“We will continue to make the investments necessary to support our businesses in the coming years,” he said.

Tillson said Exxon will make its next investment in 2018 and 2019 and also expects to make further investment in its drilling and fracking operations.

He said the drilling will help offset some of the cost reductions, which are expected to cost the company about $7 billion in 2019 alone.

“It’s a long-term investment, and it’s one that we can’t ignore,” Tillerson added.

The cuts come as oil and fuel prices have dropped sharply and are set to rise further, threatening the bottom line of ExxonMobil.

Tobacco giant Philip Morris has said that by 2019, it expects to have $18 billion of cash, with an additional $11 billion sitting in reserves.

It has been cutting spending and spending cuts for the last few years to help its bottom line.

The move to cut costs comes as Exxon has been under fire for not doing enough to mitigate the impact of climate change.

The company has already announced that it plans to spend $30 million on a new $100 million greenhouse gas-free building, as part of a larger effort to reduce greenhouse gases.

Exxon also has begun hiring onshore and offshore staff.

Tackling climate changeThe US oil industry, which employs some 14,000 people, has been struggling with rising global oil prices and a sluggish economy, which has contributed to a drop in oil production.

Tolson said the industry has made major investments to adapt to changing conditions, but he also noted that the US has an energy mix that’s more reliant on oil than in recent decades.

“This is the oil and the gas, not the gasoline, that drives our economy,” he told CNBC.