Both ExxonMobil and BP announced on Tuesday that they had suffered huge losses in 2020 amid the low demand for oil due to the coronavirus pandemic.
Exxon posted $ 22.4 billion in losses for 2020, a loss of $ 20.1 billion for the fourth quarter.
According to Reuters, it was Exxon’s first annual loss.
BP reported $ 20 billion in losses for 2020, including nearly $ 1.4 billion in the fourth quarter.
Meanwhile, Chevron announced last month that it lost $ 5.5 billion in 2020, including $ 665 million in the fourth quarter.
During the pandemic, oil prices fell, especially early in the year as oil demand slowed amid a significant decline in travel and foreign disputes.
In recent months, however, the oil price has recovered, and US crude oil sold at $ 55 a share on Tuesday afternoon. Demand is expected to recover somewhat if the pandemic is brought under control.
“The past year has presented the most challenging market conditions that ExxonMobil has ever experienced,” ExxonMobil CEO Darren Woods said in a statement.
Woods added that ‘reorganizations’ and initiatives ‘have enabled us to respond decisively to permanently improve our cost structure, promote greater efficiency in our businesses and get a stronger business.’
In October, the company announced plans lay off about 1,900 U.S. employees.
About the same time it is has been reported that BP would reduce 7,500 jobs after an additional 2,500 were voluntarily discontinued.
In a statement, BP CEO Bernard Looney highlighted the changes, including the loss of jobs as a reinvention of the company.
“The underlying operations of the company have remained secure – one of our safest years – and reliable, and major new projects have been launched,” Looney added.