HOUSTON — Big Oil isn’t so big anymore.

Exxon Mobil, BP and other large oil companies collectively lost tens of
billions of dollars last year, posting their worst performance in years
and, for some companies, in decades.

The pandemic was largely to blame. It sapped demand for gasoline, diesel
and jet fuel as countries and states locked down and people stayed home.
But such painful years could become more commonplace as growing concerns
about climate change, tighter regulations, and the rise of electric cars
and trucks force a reckoning for an industry that has dominated the
global economy over much of the last century. General Motors further
raised the stakes for the industry last week when it said it aimed to do
away with internal combustion engines and sell only electric cars by 2035.

The oil industry is slowly transitioning to a future dominated by
cleaner energy. BP, Royal Dutch Shell, Total and other European
companies are investing considerable resources in offshore wind and
solar energy while cutting back on oil. But those investments are
unlikely to pay off for years, maybe even a decade or two.

The American oil majors have been far slower to pivot from fossil fuels,
but they are feeling increasing pressure from investors to change their
business models. Exxon said this week that it was investing $3 billion
in a new business called Low Carbon Solutions, which will initially
focus on carbon capture and sequestration projects.

***On Tuesday, Exxon reported that it lost $22.4 billion in 2020,
compared with a profit of $14.3 billion in 2019. Much of the loss came
from a $19.3 billion write-down of assets, including natural gas
operations that the company acquired when energy prices were much higher.***

And BP said on Tuesday that it lost $5.7 billion last year — its first
loss in a decade. The company made a $10 billion profit in 2019. Now the
company is cutting at least 10,000 jobs from a work force of about
70,000 people and selling some $25 billion in businesses it decided it
didn’t need anymore.

Conoco Phillips, the largest American independent producer, lost $2.7
billion for the year. Chevron said last week that it had lost $5.5
billion, down from a profit of $2.9 billion in 2019.
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