Because of the Covid-19 epidemic, a lot of business starts from cryptocurrency and continued the highest-earning oil and gas firms lost billions in 2020. The crude oil price has fallen due to a trade war and a significant drop in demand, rendering many wells unprofitable.
In 2021, revenues started recovering, but practices have changed to work with a lower oil price. At the same time, the price of crude oil has risen significantly, prompting numerous producers to raise their profit forecasts.
When China implemented lockdowns in early 2020, state-owned Sinopec was one of the first firms to face the consequences of the pandemic. The company has quickly rebounded since then.
Official statistics suggest that Sinopec made $323 billion in 2020, despite Chinese corporations providing far less information than companies in many other countries. According to GlobalData, the company’s sales are expected to drop by 28.8% in 2020. At the same time, net income decreased by 43%, leaving Sinopec with a market capitalization of around $70 billion.
In 2020, the company’s refining and exploration/production segments combined lost almost $22 billion. However, $21 billion in earnings from its marketing and distribution industry compensated for the losses in its bank account.
The first ship arrived in May at the Sinopec Zhongke Refinery Port, China’s largest oil port. The dock has a 300,000-ton berth and eight airports, providing a 5.61 million-ton-per-year throughput. The port was built by more than 18,000 people, with the first phase costing more than $6 billion.
The corporation has moved toward developing hydrogen production in line with China’s forthcoming Five Year Plan. It has installed hydrogen refueling stations in at least four provinces and started developing infrastructure and technology for all colors of hydrogen.
PetroChina is the publicly traded branch of China National Petroleum Corp., a state-owned corporation. According to the company’s annual report for 2020, it outperformed its post-pandemic forecasts. Chairman Zhou Jiping attributed this to Covid-19’s spread focusing on high-yield developments.
Compared to the previous year, the corporation increased oil production by 4.8 percent and gas production by 9.9 percent. At the same time, it lowered the cost of producing natural gas by 8.3% to $11.1 per barrel.
Even though the firm’s revenue declined by 23.2 percent in 2020, its financial position “remained steady,” according to PetroChina’s annual report. The company has increased its full-year dividend by more than 20%. PetroChina hit record gross profit levels in 2021, boosted by the rebound of the Chinese economy and increased oil prices.
In the Sichuan, Ordos, and Tarim basins, the company discovered hydrocarbon reserves, which it will now develop. The business made significant discoveries in Chad and Kazakhstan. PetroChina plans to lower emissions in 2025, intending to reach “near-zero” emissions by 2050.
Saudi Aramco hit its highest-ever single-day crude oil production output of 12.1 million barrels per day in April 2020. It pumped a record-breaking 10.7 billion cubic feet of gas in a single day in August. At the same time, global sanctions caused Saudi Aramco to pump 6% fewer hydrocarbons in 2019 than in 2018.
Saudi Aramco became public on the Saudi stock exchange that year, while the Saudi government owns most of the corporation. This alliance was vital in 2020 when Saudi Arabia worked with other OPEC members and the Russian government to reduce oil production as demand fell. As a result, Saudi Aramco will be in charge of selecting its production in mid-2020 to raise crude oil prices.
In 2020, the company’s capital expenditures will decrease by $6 billion. On the other hand, Aramco spent money in June to buy majority ownership in Sabic, a chemical business. It also committed to establishing a chemicals facility in eastern Saudi Arabia with TotalEnergies and invested in a joint-venture materials company with Baker Hughes, an oilfield service company.
In 2020, the firm generated pre-tax earnings of $101 billion and net income of $49 billion, representing over 60% of the previous year’s total. The corporation fared much better as oil prices returned in 2021, with profits nearly tripling.
Saudi Aramco has also joined the Hydrogen Council, which aims to speed up the development of hydrogen. The company tested hydrogen export infrastructure by sending a sample shipment of blue ammonia to Japan in August. In 2020, however, the company’s flaring intensity increased marginally.
Royal Dutch Shell
The highest-earning oil corporation not owned by a government, Shell lowered its spending and operating costs in response to the virus’s spread. To ensure it had adequate capital to respond to the challenges posed by Covid-19, it backed out of the Lake Charles LNG project and sold its Appalachian holdings.
The corporation will lose $21 billion in the 2020 fiscal year. The majority decline was due to sales nearly halving to $180 billion.
On the other hand, Shell continued to invest in several projects, including LNG processing in Nigeria. As oil prices rose, the corporation used the extra cash to pay down debts and raise dividends. Many of the company’s Canadian assets were sold to Crescent Point Energy for $707 million in 2021. It also signed an agreement for onshore extraction in Egypt with Cairn Energy and Cheiron Petroleum Corp.
Shell’s push into renewable energy continues with wind developments in the Netherlands and the United States. In addition, the corporation experimented with floating and airborne wind projects while also agreeing on energy transition principles with seven other major companies.
After establishing a net-zero aim just before the start of Covid-19, British oil company BP agreed to the transition principles as well. The company’s financials were similar to Shell’s, with sales dropping to $180 billion.
The upstream part of the corporation lost $21 billion in the fiscal year 2020/21. Despite this, the cost per barrel of oil equivalent remained about $6.30. The revised valuation of BP’s non-operating assets resulted in a $16 billion reduction in value, albeit this might alter when oil prices rise.
BP sol its petrochemicals division to Ineos for $4 billion in June. The business began operations on the Alligin field in the United Kingdom and the Ghazeer field in Oman in early 2020. In October 2020, engineers generated the first gas from Egypt’s Qattameya field, while in December 2020, the ultra-deepwater R Cluster project in India produced its first gas.
Meanwhile, the company’s diversification initiatives proceeded. It announced investments in wind farms in the United States, a carbon capture project in the United Kingdom, and a green hydrogen project in Germany. Its Lightsource company built multiple solar farms in the United States, while its Chargemaster branch set up electric car charging stations around the United Kingdom.