Pandemic causes multi-billion dollar loss for Shell
BY NINIAN CARTER
February 4, 2021 – Oil behemoth Shell has reported a sharp drop in full-year profits as the Covid-19 pandemic takes a heavy toll on the oil and gas industry.
Royal Dutch Shell has posted a net loss of $21.7bn for 2020, after the coronavirus pandemic caused the demand for oil to slump.
As a result, it says it may need to take measures to cut production – this comes on top of last September’s announcement that 9,000 jobs would go worldwide.
In recent days, oil industry rivals have posted similarly sizeable losses for last year, including BP with an $18.1bn loss and Exxon Mobil down $22.4bn.
If the oil industry is to survive then it will need to consolidate assets and evolve, with early rumours pointing to this beginning with a potential merger between Exxon and Chevron in the United States.