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Oil Giants ExxonMobil and Chevron Report Increased Production,Solid Profits in Q3 2023
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Despite fluctuating global demand and ongoing geopolitical tensions,ExxonMobil and Chevron both boosted oil and gas output during the third quarter of 2023,demonstrating resilience and strategic adaptation within the energy sector. While profits declined from record highs, both companies maintained substantial earnings.
Key Takeaways: Q3 2023 Performance
Both ExxonMobil and Chevron reported increased production volumes in the third quarter of 2023. This rise in output comes at a time of considerable uncertainty in the energy market, influenced by factors such as the war in Ukraine, OPEC+ production cuts, and shifting global economic conditions.
while specific figures varied, both companies benefited from increased production in the Permian Basin, a prolific shale oil and gas region spanning West Texas and New Mexico.ExxonMobil’s production averaged 3.8 million oil-equivalent barrels per day, while Chevron’s averaged 3.4 million oil-equivalent barrels per day.
Profitability: A Step Down from Record levels
Although production increased, profits for both companies were lower than the record-breaking levels seen in the same period of 2022. This decline reflects a decrease in global oil prices compared to the exceptionally high prices experienced last year. Though,it’s crucial to note that “lower” profits still represent substantial earnings.
ExxonMobil reported net earnings of $9.1 billion for the third quarter, down from $11.4 billion in Q3 2022. Chevron’s net income was $6.7 billion, compared to $11.6 billion in the prior-year quarter. These figures demonstrate the cyclical nature of the oil and gas industry, where profitability is heavily influenced by commodity prices.
| Company | Q3 2023 Net Income | Q3 2022 Net Income | Change (%) |
|---|---|---|---|
| ExxonMobil | $9.1 billion | $11.4 billion | -20% |
| Chevron | $6.7 billion | $11.6 billion | -42% |
Strategic Implications and Future Outlook
The continued investment in production by ExxonMobil and Chevron signals a belief in the long-term demand for oil and gas, even as the world transitions towards renewable energy sources. Both companies are together investing in lower-carbon technologies, but thier core business remains firmly rooted in fossil fuels.
Chevron, such as, is focusing on carbon capture and storage and biofuels, while ExxonMobil is prioritizing hydrogen and advanced recycling technologies. Though, the scale of these investments remains significantly smaller than their continued spending on oil and gas exploration and production.
