Big Oil Posts Record Loss in 2020
The five integrated supermajors – ExxonMobil (NYSE: XOM), BP (NYSE: BP), Shell (NYSE: RDS.A), Chevron (NYSE: CVX), and Total (NYSE: TOT) – posted a combined record loss of $76 billion in 2020.
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Big Losses
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I looked up one in the list, Royal Dutch Shell, and her 2020 revenues were 344 Billion, BP had revenues of 283 billion, XOM of 265 billion, Total 176 billion and Chevron 147 billion.Big Oil Posts Record Loss in 2020
The five integrated supermajors – ExxonMobil (NYSE: XOM), BP (NYSE: BP), Shell (NYSE: RDS.A), Chevron (NYSE: CVX), and Total (NYSE: TOT) – posted a combined record loss of $76 billion in 2020.
So while 76 billion is a big number for sure, out of 1.215 Trillion, that's 6% of their revenue. I suspect they will figure out how to cut costs and reduce production so prices rise.
In any event, if the losses were due to the pandemic, that has reached it's peak now. The only way is up, baby!
Somehow I don't think that's the most reasonable forecast.
2020 losses will be used as carry forward deductions on future profits.
Ultimately taxpayer will fund this with less tax revenue on profits and the consumer with higher prices at the pump, or at the Walmart oil shelf..
Not a judgement, its just the way the system works.
Ultimately taxpayer will fund this with less tax revenue on profits and the consumer with higher prices at the pump, or at the Walmart oil shelf..
Not a judgement, its just the way the system works.
Thanks for the post. I would say the losses are yesterdays news and the shareholders have taken their beating. Exxon is up 10% recently and refused to cut their dividend that currently works out to 6% plus. Keep watching world wide oil consumption and let me know when its back over 100 million bbls/day. If planes starting flying again its going to bump oil and gas stocks. Buy oil in the ground when its cheap. Meanwhile, don't eat too much green candy. That's just one outlook.
I think it is. Infections are stable right now, hospitals are nowhere near their limit, the elderly are vaccinated and the middle aged are going to be soon.
Even if there's new mutations, life will resume. Restrictions are slowly being lifted aswell and permanently this time.
No, sorry I wasn't referring to that aspect of oil prices.
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Expenses don’t go away … when that and required business investment (holding of leases requiring big spend) exceeds revenue … go figure … If they don’t invest … the wolves of Wall Street attack …
Far from out of the woods over a couple decent months …
Far from out of the woods over a couple decent months …
ok, happy to hear your thoughts about oil prices though. But I feel consumption will go up in a few months, probably not immediately to the level of 2019 though.
Completely agree. Sorry I was probably off the track there.
