• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 1 min *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 hour Socialists want to exorcise the O&G demon by 2030
  • 1 hour UK, Stay in EU, Says Tusk
  • 1 hour Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 14 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 2 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 2 days Conspiracy - Theory versus Reality
  • 2 days Chevron to Boost Spend on Quick-Return Projects
  • 16 hours How Is Greenland Dealing With Climate Change?
  • 2 days Maritime Act of 2020 and pending carbon tax effects
  • 3 days U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 44 mins Saudi Private Jet Industry Stalls After Corruption Crackdown
Oil Rises After Choppy Start To The Week

Oil Rises After Choppy Start To The Week

Oil prices rose by roughly…

BP Bets Big On The Caspian Sea

BP Bets Big On The Caspian Sea

British Petroleum’s wells are targeting…

Chevron Dips Into Red in Q2 on Continued Price Rout

CVX corporate office

Chevron booked a net loss of US$1.47 billion for the second quarter of 2016, on the back of the continued oil price depression. This is down from a profit of US$571 million for the second quarter of 2015. The company said the negative result included impairment charges of US$2.8 billion. Reuters notes this is Chevron’s biggest quarterly loss for the last 15 years.

Total revenues for the period totaled US$29.28 billion, a decline from US$40.36 billion a year earlier, of which sales and operating revenue accounted for US$28 billion. That’s down from US$37 billion for April-June 2015.

Oil production in the period also fell, to 2.53 million tones of oil equivalent daily.

Commenting on the results, CEO John Watson said, “"The second quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world. In our upstream business, we recorded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs. Our downstream business continued to perform well.”

Like its peers, Chevron has had a hard time tackling the fallout of the oil price rout that started in mid-2014. Cost-cutting, writeoffs on projects and layoffs, however, have turned out to be insufficient to sustain the company’s profitability amid the persistent glut. Asset sales are also a major element of its coping mechanism: the second-largest US-based oil supermajor plans to generate between US$5 and US$10 billion from asset sales.

Despite the distress, Chevron just recently approved a US$37-billion expansion of the Tengiz oilfield in Kazakhstan, which it operates in consortium with ExxonMobil and Russia’s Lukoil. Plans are to bolster production to 39 million tons of crude per year, or 850,000 barrels per day, by 2022.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • EH on July 29 2016 said:
    Well, that's??? ! IMAGINE if you will, all the consumers who been running in the Red since 2003 when has/oil was every where, plentiful @ $1.19 a gal 2 decades before,, kharmas one tough hombre,, hombre.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News