Producer Profits on Crude Oil Decline

refuel-331992_1280While lower gas prices are a positive for many people, producers of crude oil are not happy because of the decline in their profits.

Crude’s slide, down more than 50 percent from last summer, is taking a large bite from the bottom lines of oil giants Exxon Mobil and Chevron. On Friday Chevron said its second-quarter net income plunged 90 percent from the same period a year ago, while Exxon profit dropped by half in the second quarter.

Chevron, Royal Dutch Shell and several oil industry service firms, this week announced large-scale job cuts to cut costs.

But some analysts believe the energy sector is just starting to get used to this new normal of lower crude oil prices.

Find out more at CBS Money Watch.

Photo courtesy of: goiwara