Oil markets remain uncertain following strong profit reports from Exxon Mobil and Chevron. Meanwhile, record production in the U.S. contrasts with declining drilling activity in Saudi Arabia.
Exxon and Chevron Profit
Exxon Mobil reported its highest oil and gas production in over two decades, allowing the company to exceed analyst profit expectations. Exxon's CEO Darren Woods stated, 'The results proved the value of our strategy and competitive advantages.' Similarly, Chevron also expected profit growth due to high production levels and strict capital spending control.
Declining Production in Saudi Arabia
Saudi Arabia has cut its rig count to 20 in July 2023, the lowest level since February 2005. This reduction has occurred for six consecutive months as OPEC+ countries increased supply, making demand forecasts less optimistic.
Market Outlook
Despite the decrease in oil drilling, Saudi Arabia is ramping up investments in natural gas projects. There are plans to shift from oil to gas, which should help the country maintain lower oil consumption levels by 2030. Issues with production capacity and exporting gas abroad are becoming increasingly relevant for Aramco.
Amidst fluctuating oil markets and contrasting results from American and Saudi companies, the focus on natural gas indicates long-term changes in the region's energy policy.
