Companies report billions in losses and decreased value of assets, but still plan to expand oil and gas production going forward.
JUL 31, 2020
Oil companies have lost billions since the coronavirus pandemic began, according to new earnings reports. Credit: David McNew/Getty Images
The world’s leading oil and gas giants this week revealed the scale of the damage inflicted on the industry by the coronavirus pandemic, with top American companies reporting billions in losses while some European companies were able to eke out small profits.
Shell and Total, based in the Netherlands and France, respectively, said a dimming outlook on the long-term demand for oil and gas had forced them to cut the value of their assets by a collective $25 billion. The two companies attributed that lowered outlook to the effects of the pandemic, but also to an accelerating global transition to clean energy
ExxonMobil and Chevron, based in Texas and California, reported large losses as a result of the coronavirus, but made no mention of an energy transition or a looming peak in oil demand.