The world’s top oil and gas companies locked in cheap borrowing rates to raise a record amount of debt in the second quarter of 2020 and boost cash reserves as a buffer against a collapse in revenues because of Covid-19.
The dash for debt piles pressure on company balance sheets and the issue is particularly acute for BP and Royal Dutch Shell . Already burdened by high levels of borrowing, they also face the disruption of a major shift towards renewables and low-carbon.
The world’s top seven energy firms – BP, Shell, Exxon Mobil , Chevron , Equinor , Total and Eni – raised $60 billion in debt in the quarter, nearly half of the $132 billion in oil and gas sector borrowing over the period, Refinitiv data showed.
