Major oil companies, such as BP, Total, Royal Dutch Shell, Exxon Mobil, Chevron, and Total, incurred losses amounting to $77 billion during a year described by Shell's CEO, Ben van Beurden, as exceptional, due to a decline in demand caused by the coronavirus.
Patrick Pouyanne from Total stated, "We will all remember 2020 as a historic year that brought unexpected challenges and led to significant changes." The spread of the coronavirus and the lockdowns aimed at slowing the virus's spread caused catastrophic repercussions on oil prices, forcing producing countries to cut their production. As a result, questions have increased about the financial models of major oil companies, which face a long-term threat from the shift away from fossil fuels to combat climate change. Last month, Standard & Poor's Credit Ratings Agency stated that it believes energy transition, price volatility, and weakened profitability increase risks for oil and gas producers. Shares of Chevron, ExxonMobil, Shell, Total, and Cnooc have been placed on watch for downgrade. Brent crude rose by 0.38% to $61.31 per barrel, while West Texas Intermediate crude increased by 0.33%, reaching $58.55.
