Exxon Reports $1B Lost In Q2 As Oil Use Dries Up

NewsRadio 1080 KRLD
July 31, 2020 - 8:29 am

    Irving-based Exxon Mobil just posted its largest quarterly loss ever.

    The oil giant lost $1.1 billion in the second quarter of 2020.

    The company says pandemic-related shutdowns kept people at home, reducing the need for its products.

    Exxon Mobil's second-quarter revenue of $32 billion was less than half what it was a year earlier.

    The quarter was one of the worst on record for the oil industry, writes the Associated Press. The price of a barrel of benchmark U.S. crude fell below $0 in April, a stunning downfall that had not before been seen in the industry.

    Producers had been pumping far more oil than the world was using as global travel all but shut down, and storage tanks were filling up.

    Exxon announced that month that it would cut its capital spending budget by 30%, to $23 billion, and its cash operating expenses by 15%, in 2020.

    Oil prices have recovered somewhat since, but have been stuck at around $40 a barrel for weeks, which is well below what most producers need to make ends meet.

    As a result, the U.S. oil industry lost more than 100,000 jobs since February, with 45,000 of those jobs shed by upstream oil and gas companies in Texas alone, according to Rystad Energy, a consulting firm.

    *The Associated Press contributed to this report.