The year that has just ended was also an annus horribilis for oil companies. Adding up the losses suffered by ExxonMobil, Bp and Chevron yields a staggering total: 47.9 billion dollars, equivalent to around 40 billion euros.

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#UPDATE US oil giant #ExxonMobil closed the books on a terrible 2020 on Tuesday, reporting losses in the fourth-quarter and a $22.4 billion loss for the full year in the wake of lower oil prices amid the Covid-19 crisis u.afp.com/U5mN

♥ 18 2 feb 2021 · Apri su X →

ExxonMobil, the "most difficult conditions ever"

ExxonMobil recorded a loss of 20.1 billion dollars in the fourth quarter of 2020 (including 19 billion in asset write-downs), rising to 22.4 billion for the full year. It is the first time ever that it has closed the year in the red since it became a listed company, Reuters notes. The oil giant has already tried to limit the damage by cutting investment in new projects by around one third, announcing a 15 per cent reduction in staff and adding 21 billion to its debt pile. The distance from 2019, which ended with a profit of 14.34 billion dollars, is astronomical. These worrying figures are the direct consequence of the "most difficult market conditions Exxon has ever experienced", commented chief executive Darren Woods.

Bp promises to "reinvent itself"

Things are no better for Bp, which recorded losses of 20 billion dollars in 2020, of which 1.4 billion came in the fourth quarter. After 2,500 voluntary redundancies, the British oil company plans to cut a further 7,500 jobs. This too forms part of the path to "reinvent the company", chief executive Bernard Looney said in a statement in which he sought to pour oil on troubled waters. "We have strengthened our finances, reducing costs and completing significant divestments. And despite all of this, the underlying operations of the business have remained safe – it has been one of our safest years – and reliable, and significant new projects have been brought online." The company has promised to reach net zero emissions by 2050 directly associated with its operations and the production of gas and oil, without however providing any further concrete details on how it intends to achieve this.

Chevron also among the oil companies closing 2020 in the red

California-based Chevron also swung from a profit of 2.9 billion dollars recorded in 2019 to a loss of 5.5 billion in 2020. "It was a year like no other", in the words of chairman and chief executive Mike Wirth. Until not so long ago there was talk of a possible merger with ExxonMobil that would have created a giant with revenues of 275 billion dollars, 7 million barrels of oil produced every day and a market capitalisation of around 350 billion. But observers are sceptical that the plan can come to fruition.