After a grim Q2 season for Large Oil, the world’s third-most worthwhile vitality firm is warning that 20% of the world’s oil and fuel reserves might not be viable.
Based on Exxon Mobil, one-fifth of the world’s oil and fuel reserves will not qualify as “proved reserves” on the finish of this yr if oil costs fail to get better earlier than then.
A flurry of oil and fuel firms have written off billions in oil and fuel property as the worth of these property within the present oil value local weather is not what it as soon as was once. Exxon was not amongst them.
Exxon is at present reviewing its oil and fuel property, the outcomes of which must be obtainable by November. However Exxon has caught some flack for not making many asset changes over the past decade, whereas its Large Oil friends have.
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Exxon recorded its worst quarterly loss in fashionable historical past within the second quarter of this yr, reserving a lack of $ 1.1 billion, in comparison with earnings of $ three.1 billion in Q2 2019.
Nonetheless, Exxon shouldn’t be transferring to chop its dividend, which analysts count on will value the oil main $ 15 billion. It’s, nevertheless, transferring to make some job cuts, pension matching contribution cuts, and different value self-discipline points, in keeping with varied sources.
A big portion of Exxon’s shareholders are retail buyers, Exxon continues to make their dividend a precedence.
Exxon has been demoted from the world’s second-most worthwhile vitality firm final month, as Reliance Industries unseated the supermajor from its long-held place.
