U.S. Oil Industry Reports Huge Profits in the Second Fiscal Quarter
In a significant jump, the U.S. oil market recorded significantly high profits, accompanied with significantly high net income, in the second quarter of the year 2010. The rise is directly attributed to the increase in the prices of petroleum and natural gas, for, during this fiscal quarter, oil prices reached $71 a barrel.
On Friday, Chevron Corporation scored profits of $2.70 a share, exceeding the $2.44 a share profits expected by Thomsen Reuters analysts. This rise tripled the Company’s profit, reporting net income of $5.41 billion. The oil giant recorded 2010 sales of $51 billion, soaring up from the $40 billion sales noted in 2009. These series of victories dashed last year’s poor performance, which resulted in Chevron discharging a big lot of its employees.
In addition, profits of Exxon Mobil Corporation showed a massive rise from 2009’s $4 billion profits, scoring $7.6 billion profits in 2010. Occidental Petroleum, as well, increased its earnings by 61% and its sales by 30%, during this lucrative second quarter of 2010. ConocoPhillips reported a rise in its share value from 57 cents to $2.77 a share.
Despite this marathon of growth, Fadel Gheit, a Senior Energy Analyst for Oppenheimer & Co. warned the investors that this climb will not last for long due to the slow pace of the economic recovery.
One particular Company remained out of the race, which is British Petroleum, recording net loss of around $15 billion, as a result of the oil spill in the Gulf of Mexico.