Opec deal tests oil majors' risk-reward appetite

Paris

OPEC's deal to cut production and boost prices gives oil companies the opportunity to shake off two years of layoffs and slumping profits to start investing again - if they still have the risk appetite.

Just ask Patrick Pouyanne, chief executive officer of Total SA. Throughout the downturn, he has consistently warned that tens of billions of dollars of investment cuts around the world will create an oil-supply shortfall within a few years. The situation presents an opportunity for the French producer and refiner, which will consider next year whether to start developing expensive new projects.