Chevron has become the most valuable American oil company for the first time in 30 years. At the close of trading on the New York Stock Exchange on Wednesday, October 7, it was valued at $142.03 billion, higher than its main competitor, ExxonMobil, at $141.65 billion, according to the site.
The market leader in terms of capitalization of the company was allowed to become a smaller drop in value. In fact, competitors have collapsed in value since the beginning of the year, but for ExxonMobil, the decline was 50 percent and for Chevron only 40 percent.
The exclusion of ExxonMobil from the Dow Jones Industrial Average allowed ExxonMobil to be more stable than its competitor, although the company was its oldest member. The presence in the index provides an opportunity to raise more funds, and Chevron is currently the only energy company in Dow Jones.
Amid these problems, ExxonMobil previously announced plans to cut up to 1.6 thousand jobs in Europe, or a tenth of all employees. Exxon employs around 75,000 people worldwide.
The reason for the problems of American oil companies was the collapse of commodity prices amid the coronavirus pandemic and a sharp decline in demand. In the second quarter alone, ExxonMobil's losses reached nearly $1.1 billion.