Global oil giants, bugged by supply and price issues, suffered a drop in profits in 2024 compared to the previous year.
This, as the combined profits of eight of the world’s largest oil companies went down by 16 percent to $217.65 billion lat year compared to figures in 2023.
And the outlook for the global oil giants is not that bright this year.
Among the losers were US-based ExxonMobil and Chevron, the UK’s bp, France’s TotalEnergies, Italy’s Eni, Norway’s Equinor, Dutch-based Shell, and Saudi Aramco, the state-owned oil giant of Saudi Arabia.
Saudi Aramco posted a 12.4-percent drop in annual earnings to $106.20 billion, ExxonMobil recorded a 6.5-percent decrease to $33.68 billion; Shell’s profits slid by 16 percent to $23.72 billion; and Chevron’s decreased 17.4 percent to $17.66 billion
TotalEnergies logged a bigger decline of 26.3 percent to $15.76 billion in profit; bp showed sharp decrease of 35.6 percent to $8.91 billion; Equinor’s profit fell 25.8 percent to $8.83 billion; and Eni reported the most significant decline with 44.5 percent to $2.89 billion.
Jorge Leon, senior vice president at Norway-based consultancy Rystad Energy, said that oil prices declined in 2024 compared to 2023, specifically in the second half of the year, compounded by weaker margins in refining.
“In 2023, Brent crude averaged $83 per barrel, while in 2024 it fell below $80 per barrel, directly impacting revenues,” he said as quoted by Anadolu.
“For 2025, we expect oil prices to average below 2024 levels—around $75 per barrel—so I would not be surprised if oil giants’ revenues this year are even lower than last year,” he added.
For his part, Homayoun Falakshahi, a senior oil analyst at Kpler, said recent price weakness can be attributed to high production levels and demand that was tepid.
However, Falakshahi said supply management efforts by the OPEC+ supply management effective in stabilizing oil prices.
Geopolitical risks, particularly US sanctions on Iran, also caused pressure on oil prices, according to Falakshahi.
Furthermore, seasonal demand increases over the summer could push oil prices back toward $75 per barrel in the next two to three months, Falakshahi said, but prices are expected to decrese later in the year or to slightly below $70 per barrel.
