Facing tumbling profits, Exxon and Chevron focus on Permian

[Elderberry]

Houston Chronicle by  Jordan Blum Jan. 31, 2020

Exxon Mobil and Chevron on Friday said their profits plunged as sickly natural gas and petrochemical prices make oil prices around $50 a barrel look downright robust.

Neither prices nor the industry’s outlook is expected to improve this year amid a global glut of oil, gas, fuel and plastics. The result could be more budget cuts and layoffs, even after thousands of energy workers lost their jobs last year.

“It’s a sorry state of affairs. It’s hard to get excited about the energy industry as a whole,” said Jennifer Rowland, an energy analyst with Edward Jones, especially when integrated energy giants like Exxon, Chevron and Royal Dutch Shell are typically considered the safest investment bets. “Then you have a day like today and you see sometimes there are no safe havens.”

Exxon and Chevron saw their stock prices fall by about 4 percent Friday, wiping away about $20 billion in combined value.

If there is any good news from the companies, it’s that the companies have focused spending in Texas’ Permian Basin, where they can build on growing domination and productivity.

More: https://www.houstonchronicle.com/business/article/Facing-tumbling-profits-Exxon-and-Chevron-focus-15021414.php

[IsailedawayfromFR]

Oil companies have real, tangible assets.  They ain't going anywhere and will hold value in the ground.

Always has been, and always will remain.

It is not a quick buck sector, but one is in it for the long haul.