IRVING, Texas, April 30 (UPI) -- Two of the world's largest energy companies, Exxon and Shell, said a balanced portfolio meant they were able to cope in a market plagued by low oil prices.
"Exxon Mobil's balanced portfolio delivered solid financial results in the quarter," Chairman and Chief Executive Officer Rex Tillerson said in a statement Thursday. "Regardless of current market conditions, we remain focused on business fundamentals and competitive advantages that create long-term shareholder value."
Low oil prices are forcing energy companies from BP to rig leader Schlumberger to shed staff and capital in an effort to endure.
Exxon said it earned $4.9 billion during the first quarter of 2015, compared with $9.1 billion year-on-year. Capital spending on exploration, or the upstream sector, was down 9 percent. Nevertheless, the company said its gross production of 4.2 million barrels of oil equivalent per day was 97,000 barrels per day above first quarter 2014 levels.
For rival Royal Dutch Shell, its profits in the downstream sector, the refining and trading side of the business, was $2.65 billion, compared with $1.56 billion year-on-year. That provided a balance to the $675 million earned from oil and gas production, off sharply from last year.
"We continue to reduce our operating costs and capital spending; and by deferring and reshaping new projects, we can achieve further efficiencies and savings in the global supply chain, " Shell CEO Ben van Beurden said.
Shell earlier this year acquired British energy company BG Group in one of the largest deals of its kind to date. That, and a move to divest from risk-laden areas of Nigeria, led Shell's CEO to say the company would weather the storm.
