Oct 28, 2019

Big Oil is facing a tough week of third-quarter earnings reports

A sign showing gas prices per gallon in 2014. Photo: Joe Raedle/Getty Images

The world's largest publicly held oil-and-gas companies are slated to report third-quarter earnings this week.

Why it matters: It provides the latest window into how the companies are handling modest oil prices and sluggish global demand growth.

  • BP reports Tuesday; Total SA reports Wednesday; Royal Dutch Shell's comes Thursday; and U.S.-based giants Exxon and Chevron arrive Friday.

Threat level: Per Bloomberg, the companies are expected to post an average 42% drop in earnings.

  • That decline stems not only from oil prices, but also weakness in the petrochemicals market, maintenance keeping facilities at below capacity, and other forces.

But, but, but: It's not just the biggest multinationals facing a tough earnings season.

  • "Investors are bracing for weaker results from U.S. shale players in coming days as lower oil and natural gas prices and cost-cutting measures have weighed on third-quarter operations," Reuters reports.

Go deeper: Big Oil's Q3 lobbying numbers

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Exxon and Chevron profits tumble in Q3 earnings report

Photo: Spencer Platt/Getty Images

ExxonMobil and Chevron both reported steep declines in Q3 earnings this morning, becoming the latest oil giants hit by lower prices.

Why it matters: Exxon is the largest U.S.-based multinational oil-and-gas company, and its financial performance has struggled in recent years.

Go deeperArrowNov 1, 2019

Shell reports third-quarter profit dip but still beats forecasts

Photo: Omar Marques/SOPA Images/LightRocket via Getty Images)

Royal Dutch Shell reported a net third-quarter profit of $4.77 billion on Thursday, a 15% slide from the same period last year that nonetheless exceeded analysts' expectations.

Why it matters: It's the latest — and expected — sign of how lower oil prices are weighing on the industry as profit reports roll in. U.S.-based global giants ExxonMobil and Chevron report tomorrow.

Go deeperArrowOct 31, 2019

To meet climate goals, oil producers must slash production

Illustration: Sarah Grillo/Axios

The world's biggest publicly traded oil and natural gas companies would have to cut production by roughly a third on average by 2040 to meet the goals of the Paris climate deal, according to a new report.

The big picture: The opposite is occurring. Most oil and gas producers are expanding production in response to growing demand and the fact that the world is not on track to meet the Paris ambitions.

Go deeperArrowNov 1, 2019