The two largest US oil corporations “profited” thanks to the booming oil price
The profits of the two largest US oil corporations ExxonMobil and Chevron both made miracles thanks to the “galloping” increase in oil prices.
|Both ExxonMobil and Chevron declined to commit to reducing oil production. Photo: AFP|
In the third quarter of 2021, ExxonMobil, America’s largest oil company, quickly turned losses into profit, posting a $6.8 billion net profit from a $680 million loss a year ago. ExxonMobil’s third-quarter revenue grew 60% year-over-year to $73.8 billion, according to the US Energy Information Administration.
Meanwhile, Chevron, the second-largest US oil company, recorded an adjusted profit for the third quarter of $5.7 billion, excluding special categories. This is Chevron’s best quarterly result in eight years. In addition, the $6.7 billion cash flow that Chevron generated in the quarter was also a record for this group.
Chevron’s adjusted profit was not only 34% higher than analysts’ expectations in a Refinitiv survey, but it was also 17 times higher than the $340 million it recorded. A year ago.
Shares of ExxonMobil and Chevron rose slightly last week after outstanding business results in the third quarter. Year-to-date, Exxon stock is up 56%, as of the end of trading day on October 28, while Chevron stock is up 33%.
Despite the positive financial results, ExxonMobil, Chevron and many other oil companies are being questioned for allegedly causing climate change. ExxonMobil and Chevron executives were both sharply criticized on the issue during a congressional hearing last week.
Democratic Representative Ro Khanna called on ExxonMobil and Chevron executives to cut production to respond to the climate crisis like European businesses have been doing.
“Are you ashamed as an American company that your manufacturing activities are increasing (climate change) while European businesses are doing the opposite?”, Congressman Khanna questioned Mr. Michael Wirth, CEO of Chevron.
Chevron executives responded by pointing out that energy demand was growing all over the world, so the group had declined to commit to cutting oil production.
“With all due respect, I am very proud of our company and what we do,” a Chevron representative said.
Similarly, Exxon CEO Darren Woods also refused to commit to reducing oil production. However, “we are committed to cutting emissions,” Mr. Woods said.
At the time of the outbreak of the new Covid-19 pandemic, world oil prices were crushed in the first months of 2020 when countries established blockades and restrictions on travel, causing economic activities to be paralyzed. .
Oil prices then gradually increased again as countries deployed large-scale vaccination against Covid-19 and gradually eased blockade and social distancing, oil price recently surpassed the $80 mark per barrel. For the first time in seven years, the world crude oil futures price hit $85 per barrel last week and then slipped slightly around this mark.