Exxon lost $1.1 billion in the second quarter, its economic pain deepening as the pandemic kept households on lockdown, diminishing the need for oil around the world.

The Irving, Texas-based oil giant brought in $32.6 billion in revenue during the second quarter, less than half of what it brought in at the same time last year.

The quarter was one of the worst on record for the oil industry. The price of a barrel of benchmark U.S. crude fell below $0 in April, a stunning downfall that had not before been seen in the industry. Producers had been pumping far more oil than the world was using as global travel all but shut down, and storage tanks were filling up. Exxon announced that month that it would cut its capital spending budget by 30%, to $23 billion, and its cash operating expenses by 15%, in 2020.

Oil prices have recovered somewhat since, but have been stuck at around $40 a barrel for weeks, which is well below what most producers need to make ends meet.

As a result, the U.S. oil industry lost more than 100,000 jobs since February, with 45,000 of those jobs shed by upstream oil and gas companies in Texas alone, according to Rystad Energy, a consulting firm.

“The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes,” said Darren Woods, chairman and CEO, in a statement Friday. “We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganizations.”

Exxon Mobil Corp. produced 3.6 million barrels of oil, down 7% from last year.

Chevron Corp. lost $8.27 billion during the quarter, a sharp contrast to the $4.3 billion it brought in during the same quarter last year. The San Ramon-based oil giant brought in $13.49 billion in revenue, about a third of what it brought in last year.

“The past few months have presented unique challenges,” said Michael Wirth, Chevron’s chairman of the board and CEO, in a statement. “The economic impact of the response to COVID-19 significantly reduced demand for our products and lowered commodity prices.”

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Nissan confident in China as sales recover

Japanese carmaker Nissan achieved a sales recovery and saw a year-on-year increase for four consecutive months in the world’s largest auto market despite COVID-19. In July, it sold 120,945 units in China, up 11.6 percent year-on-year, setting the best sales…

French cheesemakers accidentally discover new best-selling cheese thanks to Covid-19 (VIDEO)

The coronavirus pandemic has rattled many businesses and industries across the globe. In France, iconic wine and cheese producers saw orders dramatically falling after massive closures of restaurants and markets. A family of cheese producers from the French commune of…

Nobel prize-winning economist: The relief package turned out better than I thought it would

Joseph E. Stiglitz is an American economist and a professor at Columbia University. A recipient of the Nobel Memorial Prize in Economic Sciences, he is a former senior vice president and chief economist of the World Bank and a former…

Yuan’s role in global payments increases

The yuan’s share in international payments and settlement under the capital account hit a record in March, as cross-border investment replaced trade as the driving force for the Chinese currency’s internationalization campaign, according to experts. The country’s forex regulator, the…