U.S. oil giant production down profits rely on high oil prices

The two major U.S. oil giant Exxon Mobil and Chevron reported to be the lowest since the 2005 production data, enterprises are expected in the high level of profits can only rely on high oil prices realized.

New York Macquarie Bank analyst Jason Gan HUMMEL expected, Exxon Mobil Corporation second quarter of the output will drop by more than 5 percent, marking at least the biggest decline in 10 years. And Chevron on the 10th is expected that the second quarter of its oil and gas output than the same period last year dropped 3.4 percent.

Meanwhile, according to Bloomberg News collection of analysts expect the results, ExxonMobil's net income in the second quarter to grow 26 percent to 12.9 billion U.S. dollars, U.S. companies set a record quarterly profit. Chevron profits will be over the same period increased by 11 percent to 5.95 billion U.S. dollars. Exxon Mobil and Chevron's second quarter earnings in July 31 and August 1 officially announced.

ExxonMobil and Chevron are doing their best to stop the decline in output. The two companies this year's capital expenditure budget close to 48 billion U.S. dollars, of which 75 per cent increase in production and prevent the decline in inventories. Among them, the Qatar ExxonMobil natural gas project, if launched as scheduled this year, production will increase 40 percent, the company's largest production projects. According to Gan HUMMEL disclose the information, Chevron in Nigeria may soon launch a coastal oil field project. The investment reached 5.4 billion U.S. dollars, Chevron is the largest new projects this year.

According to data provided by Bloomberg News, although this year's oil prices were to break through 147 U.S. dollars per barrel, but ExxonMobil and Chevron of the shares respectively in 1982 and since 2002 has been the largest decline, the two companies worth a total reduction of about 90 billion U.S. dollars. In addition, the major U.S. oil company stock prices reflect changes in the S & P oil stock prices this year has been a decrease of 12 percent, the worst since the 2002 performance. (Xinhua)