While decreased fuel costs may seem great for most people, oil producers are less thrilled due to the drop in their profit margins. The plummeting prices of crude oil, down over 50% compared to the previous summer, are having a significant impact on the earnings of oil powerhouses such as Exxon Mobil and Chevron. On Friday, Chevron announced a drastic 90% drop in their net income for the second quarter, compared to the same time last year, while Exxon reported a half reduction in their profits for the same period.
This week, several companies in the oil industry, including Chevron and Royal Dutch Shell, revealed substantial job cuts as a cost-saving measure. However, certain analysts propose that the energy sector is just beginning to adapt to this new normal of lower crude oil prices.
Find out more on CBS Money Watch.
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