By Ron Bousso
LONDON (Reuters) – Royal Dutch Shell <RDSa.L> and BP <BP.L> have lost over half of their market value so far this year, with both shares hitting 25-year lows this week, battered by weak oil prices and investor concerns over their plans to shift to low-carbon energy.
Exxon Mobil, the largest U.S. oil company, which is set to report its third straight quarterly loss at the end of this month, has seen its shares dive 52% since the start of the year.
Oil companies are squeezed by a steep drop in oil prices due to the COVID-19 pandemic combined with growing investor pressure to align their businesses with the 2015 Paris agreement to limit global warming.
Responding to the pressure, Europe’s top companies outlined strategies to curb greenhouse gas emissions in the coming decades, with BP and Italy’s Eni <ENI.MI> planning to rapidly cut oil output by 2030.