Oil & Gas on the Rocks: The Pandemic’s Tough Blow
The oil and gas sector was already wobbling before COVID‑19 hit. Prices were falling, inventory was piling up, and investors were tightening their belts. Then the lockdowns came, and the world’s demand for crude went into freefall. Even the biggest players saw their earnings and market value crash—no one was spared.
Key Numbers that Hit Hard
- Top five U.S. oil and gas giants lost $307 billion in market cap.
- That loss represents a 45% drop compared to last year.
These figures come from StockApps’ latest data, showing how the pandemic amplified an already fragile market. With fewer fleets pulling fuel and more fuel sitting idle, the bottom line was slammed hard.
What It Means for the Industry
The downturn has forced companies to reassess strategies and consider heavier investment in renewables. But for now, the key takeaway is this: the pandemic didn’t just pause the world—it rattled the very core of the oil economy.
Bottom Line
Even the giants aren’t immune. Because demand shrank, profits fell, and prices plummeted—it’s a reminder that change can come faster than expected.
Market cap still below March levels
When Oil Prices Suddenly Took a Nose‑Dive
Why the Market Went From Boom to Bummer
In the run‑up to the pandemic, the global oil market already felt the squeeze from a few heavyweight dramas.
- US–China trade war – hit the currency warp, inflating costs.
- Oil over‑production – rub‑rub, dumping more barrels than the world could drink.
- Russia vs. Saudi Arabia – a standoff that turned the price tag into a fiasco.
The 2020 Roller‑Coaster
March found demand collapsing like a candy bar. Saudi pushed for a cut, but Russia said “nope.” The Arab nation flooded the market to keep the prices low – the puzzle chain reaction.
- Saudi + Price Drop – short‑term relief, long‑term chaos.
- Russia Follow‑Up – both parties abused the open‑market mob, dropping prices by over 60% at the start of 2020.
OPEC and Russia later rebelled with a joint production cut, hoping to steady the ship. Unfortunately, the COVID fiasco blew up the entire economy, and crude prices quit hovering near the $40‑barrel mark – a 40% tumble since early 2020.
Bankruptcies, Burnout, and Bloomberg Bad‑News
When money stops pumping, companies feel the sting.
- Oil & gas bankruptcies – the ripple effect has swept the US barrels into a financial sinkhole.
- Largest gas producers – booted out of pockets, struggling with quarterly reports and hit investors.
Market Capitalization: From Billion to Slum
By September 2019, the top five US oil & gas titans had a combined worth of $674.2 bn.
Fast‑forward to the Black Monday crash of March, and that heavy weight slid 45% to $373 bn. A modest rebound followed, with a leap to over $461 bn in June. Then the world dipped again.
- Q4 slump – as of the week opening, the collective value hit $367 bn, $6.2 bn below March’s peaks.
Bottom Line: The Low‑Price Landscape Is Still a Rough Ride
With oil prices inching around the $40 mark and the sector’s giants still fighting for footing, the future of energy investment looks like a cocktail of uncertainty, resilience, and a hearty dash of humor.
Exon Mobil`s market cap halved in 2020, almost $155bn lost YoY
Exxon’s Grand Exit: From Dow‑Queens to Dusty Foundations
Big news, folks: In August, Exxon‑Mobil—once the shining star of the global stock market—was dismissed from the Dow Jones Industrial Average after a whopping 92‑year reign. The oil giant’s shares have taken a massive nosedive, with the company’s market cap plunging roughly 52% year‑on‑year—from nearly $300 bn in September 2019 to a mere $144 bn earlier this week.
Gas (and Oil) Giants Take a Backseat
- Phillips 66: America’s fourth‑biggest gas producer, this company’s market cap dipped by 49.6%, settling at around $22.9 bn this week. A solid second‑place loss in 2020.
- EOG Resources: The Yahoo Finance data shows a historic slide—losing over $21 bn from September 2019. It’s the third‑most significant drop among the top five US gas producers.
- ConocoPhillips: With a 42% market‑cap plunge, shares lost nearly $30 bn year‑on‑year during the COVID‑sharp decline.
- Chevron: The smallest of the group’s drop, Chevron’s valuation stands at $141.5 bn today—a 36.9% slump since last year.
In short, the oil and gas juggernauts have all been shot down by the pandemic’s economic storm, leaving big gaps in the “industrial” picture.
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