Energy In-depth: Big Oil Takes It On The Chin

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BIG OIL TAKES IT ON THE CHIN AS PROFITS PLUNGE AT EXXONMOBIL, SHELL
Supermajors Exxon Mobil and Shell saw a huge decline in first quarter profits as plunging international crude oil and natural gas prices continue to hurt earnings for companies that explore and produce oil and gas. Irving, Texas-based Exxon Mobil, the largest publicly traded company by market capital behind Apple and Microsoft, saw its first quarter earnings fall 46% to $4.9 billion, compared to $9.1 billion a year earlier.

“ExxonMobil’s balanced portfolio delivered solid financial results in the quarter,” said Rex W. Tillerson, chairman and CEO. “Regardless of current market conditions, we remain focused on business fundamentals and competitive advantages that create long-term shareholder value.”

First quarter earnings for Royal Dutch Shell fell by 56% to $3.2 million, compared to $7.3 billion in the same period of fiscal 2014.

CATERPILLAR SURPRISES AGAIN, DIVES INTO SOLAR POWER BUSINESS
A few weeks ago, Caterpillar surprised the tech and startup world and announced that it had created a new analytics and innovation division. On Thursday, the Peoria, Ill.-based agri and farming equipment giant announced a strategic alliance with publicly-traded First Solar Inc. to develop an integrated photovoltaic (PV) solar solution for microgrid applications.

Under the deal, Tempe, Ariz.-based First Solar will design and manufacture a pre-engineered turnkey package for use in remote microgrid applications, such as small communities and mine sites. The package will feature Cat-branded solar panels manufactured by First Solar and will include a balance of system components, company officials said.

Caterpillar will exclusively sell and support the new product featuring Cat-branded solar panels through its worldwide Cat dealer network, along with its current offerings of generator sets and energy storage. Acting as a central source, the industrial giant said Cat dealers will be uniquely positioned to provide customers with this fully integrated and supported single solution in the large and rapidly growing microgrid market today.

MURPHY OIL SLIDES INTO THE RED AS OIL, NATURAL GAS PRICES CUT PROFITS
Murphy Oil Corp. fell into the red during the first quarter as declining crude oil and natural gas prices cut a huge swath across the oil giant’s entire operations. For the period ended March 31, El Dorado-based Murphy Oil reported a net loss of $14.4 million, or eight cents a share, compared with a profit of $155.3 million, or 85 cents a share, a year earlier. Revenues fell to $921.7 million, down 28% from $1.28 billion a year ago. Read more here.