Big Oil Might Be In Better Shape Than U.S. Shale

For much of the past three years, the oil majors have
struggled to adapt to the new reality of low oil prices, while at
the same time, their smaller and nimbler rivals deftly pivoted to
the ebbs and flows of oil price movements. Big Oil, it has been
said, was ill-equipped to deal with $50 oil, dragged down by the
enormous expenses on their billion-dollar megaprojects. Shale, on
the other hand, was the future, and production surged in places
like the Permian Basin. The oil majors finally saw the writing on
the wall, and followed their smaller competitors…

For much of the past three years, the oil majors have
struggled to adapt to the new reality of low oil prices, while at
the same time, their smaller and nimbler rivals deftly pivoted to
the ebbs and flows of oil price movements. Big Oil, it has been
said, was ill-equipped to deal with $50 oil, dragged down by the
enormous expenses on their billion-dollar megaprojects. Shale, on
the other hand, was the future, and production surged in places
like the Permian Basin. The oil majors finally saw the writing on
the wall, and followed their smaller competitors…