<\/p>\n
On Friday, both ExxonMobil and Chevron posted multibillion-dollar losses due to an oversupplied energy market and low demand caused by COVID-19.<\/p>\n
Exxon announced a loss of $1.1 billion in the second quarter – the first time that it has reported consecutive quarterly losses in more than three decades. It cited the impact of COVID-19 on global demand, including economic factors and government restrictions on movement.<\/p>\n
"The demand destruction in the second quarter was unprecedented," Exxon SVP Neil Chapman said in an investor call. “We have never seen a decline with this magnitude and pace before."<\/p>\n
Not all of Exxon's news was poor, though: it reported considerable success in cutting costs, and it noted that it recently demonstrated production of about 120,000 bpd at its Liza Phase 1 offshore project off of Guyana. Construction on the FPSO for developing Liza Phase 2 – which will support up to 220,000 bpd – is now under way. <\/p>\n
Chevron's losses were far deeper: the firm posted a second-quarter hit of $8.3 billion, driven substantially by writeoffs and impairments. The company said that it is writing off all $2.6 billion worth of its assets in Venezuela, which may not be recoverable due to the current political situation. In addition, it took a $1.8 billion impairment due to less optimistic revisions to its outlook on future commodity prices. <\/p>\n
“We're focused on what we can control. Our actions are guided by our values and our longstanding financial priorities: to protect the dividend, invest for long term value and maintain a strong balance sheet,” said Chevron chairman and CEO Michael K. Wirth.<\/p>\n
Like Exxon, Chevron is still investing in future production capacity, including offshore E&P. Earlier this month, Chevron announced that it is buying oil and gas company Noble Energy – including Noble's offshore projects in the Eastern Mediterranean and Gulf of Guinea – for $5 billion in stock. <\/p>\n
maritime-executive<\/p>\n","protected":false},"excerpt":{"rendered":"
On Friday, both ExxonMobil and Chevron posted multibillion-dollar losses due to an oversupplied energy market and low demand caused by COVID-19. Exxon announced a loss of $1.1 billion in the second quarter – the first time that it has reported consecutive quarterly losses in more than three decades. It cited the impact of COVID-19 on …<\/p>\n","protected":false},"author":1,"featured_media":14712,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[3760,9627,97,178,1809,2316,5082,9624,9626,9625],"class_list":["post-14711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritime-news","tag-chevron","tag-dollar","tag-exxon","tag-exxonmobil","tag-guyana","tag-loss","tag-losses","tag-michael-k-wirth","tag-multibillion","tag-post"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/14711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=14711"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/14711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/14712"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=14711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=14711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=14711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}