As Oil Prices Fall, Exxon Boosts Production To Counteract

(CTN News) – A recent quarterly report from Exxon Mobil revealed that the company’s profit more than doubled during the first quarter, despite energy prices that have declined during this period of economic uncertainty.

Compared with the same period last year, when Russia invaded Ukraine and oil prices soared and net oil and gas production took off, oil-equivalent barrels produced per day increased by nearly 300,000 over the same period last year.

During the three months ended March 31, Exxon earned $14.33 billion from its operations, or $2.79 per share, in terms of profits.

In the first quarter of last year, the company earned $5.48 billion, or $1.28 per share, which was more than twice as much as Wall Street was expecting, and that was more than twice what it earned during the first quarter last year.

There has been no adjustment to Exxon’s reported results as a result of one-time events such as the sale of assets.

This was a slight decline from $90.5 billion a year earlier for the Irving, Texas-based company, which was just short of analyst expectations at $86.56 billion.

As a result, net production for the quarter was 3.8 million barrels of oil equivalent per day, which represents an increase of nearly 160,000 barrels of oil equivalent per day from the same period last year.

The net production figure increased nearly 300,000 barrels a day, Exxon excluding divestments, entitlements, and the Sakhalin-1 expropriation, as a result of the projects in Guyana and the Permian Basin.

It is our mission to increase the value of our business by increasing the production of our advantaged assets to meet the global demand,” said Woods, who is also Chairman and CEO.

There has been a substantial fall in the price of a barrel of benchmark U.S. crude oil this year, as well as a 29% decline over the past 12 months.

As a result of elevated inflation, central banks have been trying to cool their respective economies in order to counteract the effects of elevated prices. As a result, evidence of these maneuvers is already starting to surface.

According to a report released this week, the Exxon U.S.’s economy slowed to just a 1.1% annual pace in the first three months of the year as higher interest rates hammered the housing market and businesses reduced inventories as a result.

On Friday, the price of U.S. benchmark crude oil on the New York Mercantile Exchange was $75.25 per barrel in electronic trading, while Brent crude oil, the international standard, was at $78.74 per barrel.

Chevron Corp.’s performance in the first quarter exceeded Wall Street’s expectations in the energy sector, as well. A profit of $6.57 billion has been announced by the San Ramon, California-based company.

As a result, it generated a profit of $3.55 per share, while its revenue totaled $50.79 billion.

Following the release of Exxon Mobil Corp.’s quarterly results early Friday morning, the company’s shares moved into positive territory.

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