Five largest oil and gas companies’ 2020 revenue drops 30% despite posting $1 trillion in sales
Although the coronavirus pandemic heavily impacted the energy sector in 2020, some of the leading companies under the oil and gas category still posted impressive revenues.
However, the companies are yet to hit their pre-pandemic levels as the economic recovery continues.
Data acquired by Finbold indicates that the five largest oil and gas companies recorded a cumulative revenue of $1.14tn in 2020, representing a loss of about 30.9% or $500bn from the 2019 figure of $1.65tn.
PetroChina’s last year revenue stood at $280.7bn, a drop of 19.28% from 2019’s figure of $347.8bn.
Elsewhere, Sinopec, also from China, ranked second with a 2020 revenue at $271.1bn, a drop of 37.32% from 2019’s figure of $432.5bn. Saudi Aramco is in the third spot, with 2019 revenue standing at $294.9bn dropping 22.09% to $229.7bn last year.
Uk-based BP recorded the largest drop of revenue by 39.38%, from $297bn to $180bn between 2019 and 2020. ExxonMobil from the United States posted $275.5bn in 2020 revenue dropping 35.30% to $178.2bn in 2020.
Changing consumer behavior might impact oil industry recovery
As the sector aims to return to pre-pandemic levels, the report highlights possible scenarios that might challenge the goal. According to the research report:
“In the next few years, consumption is forecast to remain below its pre-pandemic trend. However, the pandemic is likely to affect oil consumption in the longer term due to a shift in consumer behavior. For example, air travel globally might not fully recover as people opt for remote meetings. Elsewhere, a shift towards working from home might further lower the gasoline demand.”
The revenue revival might also be impacted by increasing campaigns to shift towards renewable energy sources. Some oil and gas companies adapt by investing in green energy initiatives to cater to their environmentally conscious investors.