In the last five years, the top five natural resource groups have lost or written off nearly $50bn on bad deals or poor project management; four of these companies' bosses have also lost their jobs. If those statistics aren't remarkable enough, it is even more surprising that these energy majors still seem able to raise money for new ventures.
In the oil business, financial discipline has generally been much tighter. Perhaps the most revealing aspect of the latest Quarterly results is that Chevron has overtaken Shell as the world's second most valuable oil company and has surpassed ExxonMobil as the business with the best return on capital employed.
The change seems to be the result of ExxonMobil’s and Shell’s exposure to gas investments in the US, where shalegas has caused a collapse in the gas price. Chevron is “more oily” than its leading rivals - its production volumes are split about 70/30 between oil and gas, while Exxon last year was 52/48 and Shell was 50/50.
'This article is from the OATS Bulletin. Please visit www.oats.co.uk for additional lubricants industry insights.'
In the oil business, financial discipline has generally been much tighter. Perhaps the most revealing aspect of the latest Quarterly results is that Chevron has overtaken Shell as the world's second most valuable oil company and has surpassed ExxonMobil as the business with the best return on capital employed.
The change seems to be the result of ExxonMobil’s and Shell’s exposure to gas investments in the US, where shalegas has caused a collapse in the gas price. Chevron is “more oily” than its leading rivals - its production volumes are split about 70/30 between oil and gas, while Exxon last year was 52/48 and Shell was 50/50.
'This article is from the OATS Bulletin. Please visit www.oats.co.uk for additional lubricants industry insights.'
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