Despite being notoriously lucrative in the business world, the oil business has nosedived in the past year. Over the weekend the latest results were released and look to be worse than expected.
Oil Giant Chevron announced a 90% drop in earnings and while Exxon Mobil earned $8.9 billion in profit during 2014, this year it experienced a drop of over half at $4.3 billion.
Financial experts don’t see oil prices making a recovery any time soon and they estimate this is due to the amount of oil that is on sale, the Middle East continues to produce the so called black gold while the US capitalises on its own energy boom.
To put in perspective just how much the picture has changed for Big Oil, in 2009, Exxon used to be the largest company in the world according to market capitalisation. This week it has fallen to the fifth spot, behind technology giants such as Apple, Google and Microsoft.
Some investors are wondering if now is a good time to purchase shares in oil companies like Exxon and Chevron since the shares are trading so low. Exxon stocks are currently down by approximately 20% since 2014, and Chevron has fallen by 30%.