Chevron Typifies Majors' Struggle With Low Prices

摘要

One data point does not make a trend, but two data points are a pretty good start. And if Chevron and Royal Dutch Shell's fourthquarter earnings are any indication, the integrated majors are in for a rough year if the slump in oil prices continues. Chevron reported an adjusted net income of $2.47 billion for the fourth quarter of 2014, down 48% from the prior-year period. A 59% plunge in adjusted upstream earnings to $1.88 billion led profits lower -- a far steeper fall than the roughly 30% decline seen in Chevron's liquids price realizations to around $65-$70 per barrel.