Chevron, Exxon Cut Spending on Oil Price Slide

Exxon’s workforce was 16% larger, but the company pumped 54% more oil and gas than Chevron during the third quarter.

Revenue fell 37 percent to $67.34 billion, beating the forecast of $61.71 billion among analysts surveyed by FactSet. The average price for natural gas was $1.96 per thousand cubic feet, down from $3.46.

Chevron’s five new projects are costing the company more than $20 billion.

Net income dropped to $2.04 billion from $5.59 billion, squeezing Chevron’s production profits into razor-thin territory.

Downstream: Chevron’s downstream segment achieved earnings of $2,211 million, considerably higher than the profit of $1,387 million past year.

The price for West Texas Intermediate, the US benchmark, averaged $46.50 in the quarter compared with $97.25 in the year-earlier period.

Chevron also predicted further spending cuts in 2017 and 2018 that would bring its budget down to as low as $US20 billion. However, the market witnessed a few buying interests by investors, and the share price was pushed to hit $0.39, the day high.

Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) reported their third quarter of fiscal year 2015 (3QFY15) results on Friday before the opening bells.

The 47 percent drop in earnings came even as the Irving oil giant boosted daily production by 87,000 barrels of oil equivalent to 3.9 million barrels.

Holding up profits were downstream operations, which earned $2.21 billion. Profit at the chemical business increased 12 percent to a record $78 million in the third quarter.

It also sold off $491 million in assets to improve its bottom line. The proceeds of which will be used for its exploration and production business and to shore up its balance sheet.

Exxon Mobil is dealing with oil prices that have dropped by half since June 2014 and have remained lower for longer than most industry experts expected. Eni’s top recent discovery has been a massive natural gas field off the Egyptian coast. It is slashing costs as it prepares for a long-term low oil price environment. The price average from July to September was $51.30 for a barrel. Net cash from operating activities fell to $15 billion from $25 billion.

Revenue surged 18 percent to $5.94 billion, beating analyst expectations.

Revenue: Revenues fall year-over-year.

Crude oil declined more than 55 percent since previous year, and this descend is felt throughout the global energy industry, forcing many producers and their suppliers to make tough choices. This is a starkly different – yet disturbing – energy world!