Five global oil majors collectively slashed production rates and the value of their assets significantly in the second quarter as the COVID-19 pandemic put fuel prices and demand under intense pressure. The five companies, which are Chevron, Shell, Total, ExxonMobil, and BP, also cut capex by a combined $25 billion between the first and second quarters of 2020.
A report by Reuters said that these companies had cut the value of their assets by nearly $50 billion in the April-June quarter. Exxon has so far reported no sizable impairments. However, it recently signalled that it might eliminate 20% or 4.4 billion barrels of its oil and gas reserves if the downturn persisted until the end of the year.
Previously, BP took a $17-billion impairment and said it would re-focus spending towards renewables and away from oil and gas in the coming years. The London-based oil giant also said that it planned to reduce overall output by around 1 million boepd by the end of 2030 from its current 3.6 million boepd.
