Big Oil faces a ‘good sweating’; some aren’t fit
For the last few years, oil industry giants have enjoyed a bonanza but the tailwind has now turned into a headwind
Add BT as a preferred source
WHEN John D Rockefeller wanted to punish a rival, he cut prices to force them to operate at a loss. The father of the modern oil industry had a name for it: a “good sweating”.
A century later, the Organization of the Petroleum Exporting Countries and allies (Opec+) is giving Big Oil the modern equivalent of Rockefeller’s time-tested tactics.
Not everyone will be fit enough for it. For the last two-and-a-half years, Big Oil has enjoyed a bonanza, profiting from the impact of Russia’s invasion of Ukraine and Opec+’s tight control of the market. High prices inflated cash generation, leading to bumper payouts to shareholders – via, above all, buybacks.
TRENDING NOW
Asia-Pacific aviation: is up really the only way?
Philanthropy should belong in the family wealth conversation: Standard Chartered Global Private Bank
Russia’s ‘pivot to Asia’ takes a turn as it prioritises ties with isolated regimes over bigger economies
Income Insurance CEO Andrew Yeo resigns, company in process of identifying successor
