ExxonMobil and Chevron can be happy with ‘boom’ oil prices some time recently. It could be, profit the two energy giants bloomed in this first quarter. However, both companies will also lose money as a result of their decision to leave Russia in the midst of an escalating war with Ukraine.
quote CNN Business, Tuesday (5/4), Exxon, an oil and gas company from the US, will release its quarterly report on April 29, 2022. The company is optimistic that its profit will increase significantly.
Exxon’s core business, namely oil and gas, is believed to increase the company’s profit by up to US$2.3 billion compared to the fourth quarter of last year.
Please be advised, US oil prices increased by up to a third during this time frame. “Not to mention, higher natural gas prices could add up to US$400 million (profits),” said Exxon.
However, remember, the decision to leave the Russian drilling project also has the potential to result in a loss of US $ 4 billion because some of the projects are owned by the government of President Vladimir Putin.
Earlier, Exxon said it would cease operations at the Sakhalin-1 drilling project in Russia. The move was taken in order to punish Russia for its military invasion of Ukraine which was then followed by several other energy companies.
Likewise with Chevron. It is estimated that Chevron’s profit will touch its highest level in seven years due to the surge in oil and gas prices that occurred in recent times.
The bosses of the two companies, Exxon and Chevron, are scheduled along with senior executives from several other big oil and gas companies, to testify before Congress on Wednesday (6/4) tomorrow to discuss the pros and cons of the current situation.
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