Chevron Corporation, Royal Dutch Shell Plc & Other Oil Co.s Have Lost $1.3 Trillion Since Last Year
By: MICHEAL KAUFMAN: Aug 5, 2015
As the global benchmark of crude, Brent currently hovers around $50 per barrel. Meanwhile, the oil and gas industry has lost $1.30 trillion of its value this year, and this eroded value equals the annual gross domestic product (GDP) of Mexico. The combined market capitalization of 157 listed oil and exploration and production (E&P) companies in North America has dropped from $3.80 trillion last June to around $2.50 trillion this July, marking a decline of 34.20%.
The crude prices have dropped more than 50% since last June, as they fell from $114 to around $50. The declining oil prices have forced oil companies, including Royal Dutch Shell plc (ADR) (NYSE:RDS.A), Total SA (ADR) (NYSE:TOT), and BP plc (ADR) (NYSE:BP) to cut their spending, as BP has started testing projects that will give it a profit of $60 per barrel. Total keeps the price outlook at $70, while Shell keeps it at between $70-110.
The TRUTH will set you FREE.
No comments:
Post a Comment