Exxon and Chevron Megadeals Reveal Why Days of Easy Oil Are Over

Exxon Mobil Corp. and Chevron Corp. spent recent days telling investors why they want to spend $114 billion combined on two megadeals. On Friday, their earnings reports revealed why they need to.

Exxon’s oil production is hovering near the lowest level since its merger with Mobil Corp. more than two decades ago. Chevron disclosed headwinds for key growth projects in Kazakhstan and the Permian Basin in West Texas and New Mexico.

In short, the days of easy oil production growth are over.

The market reaction was swift and brutal. Chevron plunged nearly 7% and Exxon closed 1.9% lower, even as ...