- Rising US oil production helped major US oil companies post their second annual profits in a decade, the FT reported.
- ExxonMobil and Chevron reported fourth-quarter profits of $36 billion and $21.4 billion, respectively.
- These figures are nevertheless down compared to 2022, when the Ukrainian crisis stimulated energy companies.
U.S. oil giants are making big gains from booming production that flooded the market with crude last year.
ExxonMobil and Chevron both posted their second annual profits in a decade, the Financial Times reported Friday.
Exxon reported a fourth-quarter profit of $36 billion, down from $55.7 billion a year earlier but otherwise the highest since 2012. Chevron reported a profit of $21.4 billion of dollars, also down from $35.5 billion the year before, but apart from that. its strongest since 2013.
Both companies missed the revenue target, with Exxon reporting $84.3 billion versus an expected $85.2 billion, and Chevron posting $47.18 billion versus an expected $51.62 billion.
“If you take the market out of it, if you take out the pricing and the margins and you look at it on an apples-to-apples basis, we have more than doubled our earnings power between 2019 and 2023,” said CEO Darren Woods. from Exxon, to CNBC. Friday.
The fact that profits are lower than in 2022 – when unrest in Ukraine gave oil companies a huge boost – is a consequence of record oil supplies in the United States. The United States pumped more oil than ever in 2023, reaching a record 13.3 million barrels per day, sending prices down 11% for the year. But increased production has helped keep profits near decade highs.
Companies like Exxon and Chevron found themselves at the center of this blockbuster year. As a result, companies have increased their capital budgets for 2024, pouring more money into the Permian Basin – the epicenter of the shale boom.
Chevron’s chief financial officer said its strong quarter was driven by record production in the Permian Basin, according to the Financial Times. And Exxon’s production in the Permian and Guyana increased by 18% in 2023.
- Rising US oil production helped major US oil companies post their second annual profits in a decade, the FT reported.
- ExxonMobil and Chevron reported fourth-quarter profits of $36 billion and $21.4 billion, respectively.
- These figures are nevertheless down compared to 2022, when the Ukrainian crisis stimulated energy companies.
U.S. oil giants are making big gains from booming production that flooded the market with crude last year.
ExxonMobil and Chevron both posted their second annual profits in a decade, the Financial Times reported Friday.
Exxon reported a fourth-quarter profit of $36 billion, down from $55.7 billion a year earlier but otherwise the highest since 2012. Chevron reported a profit of $21.4 billion of dollars, also down from $35.5 billion the year before, but apart from that. its strongest since 2013.
Both companies missed the revenue target, with Exxon reporting $84.3 billion versus an expected $85.2 billion, and Chevron posting $47.18 billion versus an expected $51.62 billion.
“If you take the market out of it, if you take out the pricing and the margins and you look at it on an apples-to-apples basis, we have more than doubled our earnings power between 2019 and 2023,” said CEO Darren Woods. from Exxon, to CNBC. Friday.
The fact that profits are lower than in 2022 – when unrest in Ukraine gave oil companies a huge boost – is a consequence of record oil supplies in the United States. The United States pumped more oil than ever in 2023, reaching a record 13.3 million barrels per day, sending prices down 11% for the year. But increased production has helped keep profits near decade highs.
Companies like Exxon and Chevron found themselves at the center of this blockbuster year. As a result, companies have increased their capital budgets for 2024, pouring more money into the Permian Basin – the epicenter of the shale boom.
Chevron’s chief financial officer said its strong quarter was driven by record production in the Permian Basin, according to the Financial Times. And Exxon’s production in the Permian and Guyana increased by 18% in 2023.