When Oil Falls but Exxon and Chevron Don’t

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They also cheered the strategic pivot of European majors to focus back on boosting their upstream production, Exxon and Chevron’s record-breaking Permian output, the synergies the U.S. supermajors began reporting from recent multi-billion-dollar acquisitions, and the cost-cutting measures of all five Big Oil firms.This year, the majors face a more challenging test and potentially a more delicate balancing act to please investors as prices continue to linger in the low $60s per barrel, except for brief spikes on geopolitical news.The share price rally against falling crude oil prices could come to an end as Big Oil may have to choose to sacrifice some buybacks as profits are set to slide with the expected lower oil price, analysts say.Good 2025 for Cash Flows and Cost CutsLast year, the supermajors moved to streamline operations, reduce job numbers in the thousands, and, in the case of ExxonMobil and Chevron, began reaping the benefits of recent mega-mergers.Big Oil accelerated layoffs in search of further cost cuts and greater efficiency amid industry consolidation, weaker oil prices, and technology advances. The number of office-based employees and contractors is shrinking, as the companies have pledged billions of U.S. dollars in cost savings and slimmer corporate structures. That’s to eliminate inefficiencies and high costs while keeping payouts to shareholders at much lower prices compared to the 2022 highs.Exxon has already eliminated about 400 jobs in Texas since it acquired Pioneer Natural Resources in a $60-billion deal finalized in May 2024. Exxon has also said it would slash 2,000 jobs worldwide, with nearly half of these cuts at its Canadian business, Imperial Oil.Chevron, which bought Hess Corporation for $53 billion, has said it would reduce its workforce by 20% by the end of 2026 as part of wide cost cuts. This includes 800 jobs in the Permian.BP, which is under intense shareholder pressure to slash costs and reduce debt, said in August that it was accelerating the reduction of contractor numbers and office-based workforce.With thousands of job cuts, BP expects “material incremental savings from the first quarter of 2026,” chief financial officer Kate Thomson said on the Q2 earnings call.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.11 (-0.17%)Nasdaq23,515.39 -14.63 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX15.86 +0.02 (+0.13%)Gold4,595.40 -28.30 (-0.61%)Trending tickersBTC-USD Bitcoin USD 95,190.81 -522.30 (-0.55%)NVO Novo Nordisk A/S 62.33 +5.21 (+9.12%)SMCI Super Micro Computer, Inc. 32.64 +3.22 (+10.94%)APP AppLovin Corporation 568.76 -38.23 (-6.30%)VERO Venus Concept Inc. 8.00 +6.56 (+455.56%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.24 +2.67 (+16.11%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +8.99 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.42 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.96 (-9.65%)Most activeIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Holdings Inc. 12.16 -0.66 (-5.15%)NVDA NVIDIA Corporation 186.23 -0.76 (-0.41%)INTC Intel Corporation 46.96 -1.35 (-2.78%)BBAI BigBear.ai Holdings, Inc. 6.12 -0.05 (-0.81%)Top economic eventsEarnings eventsMy earnings eventsEarnings events