Big Oil used to run the table in the United States and around the world, but recent government, shareholder and environmental policies have saddled the super-majors with a host of problems, according to a recent report from Goehring & Rozencwajg Associates, a firm that invests in commodities and natural resources.
The report, titled The Incredible Shrinking Oil Majors, says Big Oil’s problems are continuing to mount as forces are being applied by various ESG groups and shareholders, exacerbating the industry’s reserve replacement and production problems. Among the recent developments: both capital spending and production of oil and natural gas continue to fall for the four super-majors (Exxon, Chevron, Royal Dutch Shell and Total Energies).
In 2019, upstream capital expenditures averaged $15 billion per quarter for these four companies. Upstream spending collapsed in tandem with oi