{"id":49339,"date":"2017-10-28T05:20:38","date_gmt":"2017-10-28T05:20:38","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=49339"},"modified":"2017-10-28T05:20:38","modified_gmt":"2017-10-28T05:20:38","slug":"exxon-chevron-results-linked-oil-price-not-cost-cuts","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/exxon-chevron-results-linked-oil-price-not-cost-cuts.html","title":{"rendered":"Exxon Chevron results linked to oil price not cost cuts"},"content":{"rendered":"

Exxon Chevron results linked to oil price not cost cuts<\/span><\/strong><\/span><\/h2>\n

Exxon Chevron results linked to oil price not cost cuts: Despite deep capital spending cuts and a refocusing on projects that can generate faster paybacks in recent years, the results on Friday showed the pair, neither of whom hedge oil output, are still at the mercy of price gyrations.<\/span><\/p>\n

Exxon and Chevron have pointed to aggressive plans for boosting low-cost U.S. shale production. But in recent quarters total output at both has atrophied and shale is unlikely to deliver a marked lift until the next decade, based on corporate projections.<\/span><\/p>\n

\u201cBoth are trying to be disciplined and show growth,\u201d said Brian Youngberg, an oil industry analyst with Edward Jones. \u201cBut it\u2019s a little bit of a transition, especially as they\u2019re trying to increase shale (output).\u201d<\/span><\/p>\n

The pair reported the same day as French rival Total SA posted a 29 percent jump in its third-quarter net profit as project ramp-ups and new investments lifted production.<\/span><\/p>\n

Exxon, which reported a better-than-expected quarterly, said its Permian oil production will grow 45 percent each year through 2020, to more than 400,000 barrels per day. The company also has a large shale position in North Dakota\u2019s Bakken shale formation.<\/span><\/p>\n

Still, Exxon said higher prices contributed $860 million to its earnings while volume increases added only $20 million to the latest quarter\u2019s exploration profit. Exxon\u2019s total output in the quarter was the lowest this year.<\/span><\/p>\n

Also on Friday Exxon, part of a consortium with Norway\u2019s Statoil and Portugal\u2019s Petrogal, a unit of Galp Energia, won one of four blocks in Brazil\u2019s coveted pre-salt oil region in an auction.<\/span><\/p>\n

Exxon stock edged up 0.1 percent to $83.53 on Friday afternoon.<\/span><\/p>\n

At Chevron, a writedown of its Bangladesh operations and a drop in U.S. production weighed on results, which missed Wall Street estimates by a wide margin.<\/span><\/p>\n

Chevron\u2019s stock slid 4.5 percent to $113.15, a drop that surprised Chief Executive Officer John Watson, he said during an investors conference call.<\/span><\/p>\n

The San Ramon, California, company, which has been one of the Permian\u2019s largest acreage holders since the 1930s, has only recently begun to aggressively develop its oil reserves there. Watson told Reuters earlier this year the Permian is \u201cvery important\u201d in the company\u2019s portfolio.<\/span><\/p>\n

While the company has yet to forecast 2018 production goals for the Permian, Watson said on Friday that Chevron will grow aggressively in the region.<\/span><\/p>\n

Chevron\u2019s overall average daily output was up 8 percent over a year ago, but that was largely due to the start of giant natural-gas projects. U.S. oil production at Chevron fell overall, as aging field output offset a jump in Permian production.<\/span><\/p>\n

The loss in U.S. oil production narrowed sharply as the price received for its crude rose 13.5 percent over a year earlier.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-oil-results\/exxon-chevron-results-linked-to-oil-price-not-cost-cuts-idUSKBN1CW1XT<\/span><\/p>\n

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