The two companies focused on expanding production Oil And gas at a time spent by the two competing companies British Petroleum And huge sums of money have been spent on wind and solar energy projects and renewable energy sources that have not yet yielded results. The two American oil companies also benefited from acquisitions of smaller oil companies.
But their growing production may soon face a challenge due to uncertainty about demand, especially in China, the largest oil importer, and the possibility of the Organization of the Petroleum Exporting Countries (OPEC) lifting restrictions on production next month. The organization is expected to postpone a plan to increase production by 180,000 barrels per day amid fears of weak demand and excess supply.
ExxonMobil pumped a record level of 4.6 million barrels of oil equivalent per day in the third quarter, an increase of more than 24 percent over last year, after it achieved profits from its $60 billion bet on Pioneer Natural Resources and Denbury.
Chevron, which acquired Hess for $53 billion, posted a seven percent increase in third-quarter production to 3.36 million barrels of oil equivalent per day, thanks mostly to its gains in its U.S. shale oil business. The company added a drilling rig in the Permian Basin last quarter and will begin a production expansion in Kazakhstan in the next quarter.
Both companies announced a decline in profits on an annual basis due to weak global refining profit margins, which severely affected BP and Total Energies. Exxon’s third-quarter profits fell five percent from a year ago, while Chevron’s profits fell 21 percent.
The declines were smaller than Wall Street’s expectations and those announced by major European competitors. This week, British Petroleum reported a 30 percent drop in profits compared to last year, and Total Energies reported a 37 percent drop in adjusted net income.
