Oil majors in the age of renewables

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Oil majors in the age of renewables
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The global oil and gas industry is experiencing one of the most severe downturns in 30 years. A perfect storm of overproduction, geopolitical tensions and the long-term move towards alternative energy sources (renewables) has caused oil prices to fall to levels that are often below the long-term break-even cost of production.

Although the oil price is currently well above the low point of below US$30 per barrel seen in January 2016, the long awaited rebound in the oil price has failed to materialise. Many commentators now doubt that it ever will. That means, medium-term, the industry could be in trouble – unless it can change tack.

However, the fact remains that the oil and gas industry has produced some of the largest companies in the history of capitalism and the sector forms a giant pillar of the global economy. This month I ask: Whither the oil majors in the age of renewables?

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Comments (1)

  • John Cass says:

    Oil was always going to slump this month: the pumpers excelled themselves in December in order to get one over on each other ahead of the agreed cuts in production and December production is only now hitting the market. No idea why commentators expected anything different but the cuts should begin to work their way through beginning April.

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