Chevron Corp. reported a loss of $665 million for fourth-quarter 2020, compared with a loss of $6.6 billion in fourth-quarter 2019. Included in the current quarter was a charge of $120 million associated with the Noble Energy acquisition. Foreign currency effects decreased earnings by $534 million. Adjusted loss of $11 million in the quarter compares to adjusted earnings of $2.8 billion in fourth-quarter 2019.
Chevron reported a full-year 2020 loss of $5.5 billion, compared with earnings of $2.9 billion in 2019. Included in 2020 were net charges for special items of $4.5 billion, compared to net charges of $8.7 billion for special items in 2019. Foreign currency effects decreased earnings in 2020 by $645 million. Adjusted loss of $368 million in full-year 2020 compares to adjusted earnings of $11.9 billion in full-year 2019.
Upstream
Worldwide net oil-equivalent production was 3.28 million b/d in fourth-quarter 2020, an increase of 6% from a year ago. The increase was largely due to the Noble Energy acquisition, partially offset by production curtailments. Worldwide net oil-equivalent production for the full-year 2020 was 3.08 million b/d, an increase of 1% from the prior year.
US upstream operations earned $101 million in fourth-quarter 2020, compared with a loss of $7.47 billion a year earlier. The increase was primarily due to the absence of fourth-quarter 2019 impairments of $8.2 billion, partially offset by lower crude oil realizations.
Net oil-equivalent production of 1.20 million b/d in fourth-quarter 2020 was up 197,000 b/d from a year earlier. The increase was due to 231,000 b/d of production from the Noble Energy acquisition. Additional production increases from shale and tight properties in the Permian basin were more than offset by normal field declines, weather effects in the Gulf of Mexico, and a 25,000 b/d decrease related to the Appalachian asset sale. The net liquids component of oil-equivalent production in the quarter increased 14% to 880,000 b/d, while net natural gas production increased 39% to 1.89 bcfd, compared to last year’s fourth quarter.
International upstream operations earned $400 million in fourth-quarter 2020, compared with $731 million a year ago. The decrease in earnings was primarily due to the absence of a 2019 gain of $1.2 billion on the sale of the UK Central North Sea assets, lower crude oil and natural gas realizations, and lower crude oil sales volumes. Partially offsetting the decrease was the absence of fourth-quarter 2019 write-offs and impairment charges of $2.2 billion along with lower operating expenses. Foreign currency effects had an unfavorable impact on earnings of $158 million between periods.
Net oil-equivalent production of 2.08 million b/d in fourth-quarter 2020 was flat relative to fourth-quarter 2019. Higher production due to 124,000 b/d of production from the Noble Energy acquisition and favorable entitlement effects were offset by production curtailments associated with OPEC+ restrictions and market conditions, asset sale-related decreases of 82,000 b/d, and normal field declines. The net liquids component of oil-equivalent production decreased 2% to 1.10 million b/d in the fourth, while net natural gas production of 5.90 bcfd increased 3%, compared to last year’s fourth quarter.
Downstream
US downstream operations reported a loss of $174 million in the quarter, compared with earnings of $488 million a year earlier. The decrease was mainly due to lower margins on refined product sales and lower sales volumes, partially offset by lower operating expenses and higher earnings from 50%-owned Chevron Phillips Chemical Co. LLC.
Refinery crude oil input in the quarter decreased 17% to 806,000 b/d from the year-ago period, as the company cut refinery runs in response to the weak refining margin environment.
Refined product sales of 1.02 million b/d were also down 17% from fourth-quarter 2019, mainly due to lower jet fuel, diesel, and gasoline demand associated with the COVID-19 pandemic.
International downstream operations reported a loss of $164 million in the quarter, compared with earnings of $184 million a year earlier. The decrease in earnings was largely due to lower margins on refined product sales, partially offset by lower operating expenses. Foreign currency effects had an unfavorable impact on earnings of $108 million between periods.
Refinery crude oil input of 541,000 b/d in the quarter decreased 6% from the year-ago period, primarily due to the economic slowdowns in response to the COVID-19 pandemic, partially offset by the absence of the fourth quarter 2019 major planned turnaround at the Star Petroleum Refining Co. in Thailand.