NEW YORK, Nov 1 — US oil giants Exxon Mobil and Chevron reported a drop in their third-quarter profits today on lower oil prices, even as increased investment in US shale projects boosted output.

The companies have pumped heavy investment into the Permian Basin, a shale-rich region in Texas and New Mexico drawing considerable interest due to newer technologies that have made developing unconventional shale resources profitable.

These efforts enabled Exxon and Chevron, the two biggest US oil companies, to increase overall oil and gas production in the quarter ending September 30.

But results were dented by a retreat in crude oil prices during the three-month period, as signs of a slowing global economy amplified worries about a glut of supply.

US oil prices traded in the US$50-US$60 (RM208-RM250) a barrel range for much of the quarter, down about US$15 from the prior year.

Exxon reported quarterly profits of US$3.2 billion, plunging 49.2 per cent from the year-ago period, as revenues fell 15.1 per cent to US$65 billion.

Chief Executive Darren Woods said the company’s ramp-up in the Permian was running ahead of schedule, saying "we are making excellent progress on our long-term growth strategy.”

At Chevron, net profits were US$2.6 billion, which was 36.2 per cent below the same period of 2018. Revenues were US$36.1 billion, a 17.9 per cent decline.

"Third quarter earnings and cash flow were solid, but down from our very strong results of a year ago,” said Chevron Chief Executive Michael Wirth.

"Lower crude oil and natural gas prices more than offset a three per cent increase in net oil-equivalent production from last year’s third quarter.”

Exxon shares rose 0.6 per cent to US$68.00 in pre-market trading, while Chevron’s fell 1.0 per cent to US$115.00. — AFP