ExxonMobil And Chevron Post Record Losses In Oil Price Rout

ExxonMobil And Chevron Post Record Losses In Oil Price Rout

The COVID-19 pandemic drove oil juggernaut ExxonMobil XOMto a $1.1 billion loss in the second quarter “” its largest ever “” but hasn't budged its long-term view that the world needs more oil and gas.

Exxon is in the midst of an aggressive cost-cutting campaign, saying it would continue curtailments of crude oil production into the third quarter of this year, and that in addition to large reductions in capital spending it might make additional workforce and management reductions. But on an earnings call this morning, executives characterized reduced capital spending plans as short-term only.

"The fundamentals have not changed," said Neil Chapman, Exxon's senior vice president.

Fellow North American oil titan Chevron CVX reported an even larger loss of $8.3 billion in the second quarter and wrote down $5.7 billion in oil and gas assets, with more than half of the write-downs related to sanctions-hit Venezuela. In a call this morning, Chevron executives suggested that the pandemic had caused it to lower its long-term oil price outlook, leaving it with little choice but to revise down the value of its assets.

Chevron's quarterly loss “” driven largely by the write-downs but also by a plan to ax 6,000 jobs “” was its worst