Oil firms back in the black
Investors want to see oil companies striving for value rather than volume in the year ahead
This year's progressive rise in worldwide oil and gas mergers and acquisitions activity has built on 2016's recovery from the depths of the 2015 oil-price crash. The industry as a whole has shown increased discipline as oil prices have more than doubled since their early-2016 nadir. Companies are broadly aiming to be cash-positive at prices over $50 a barrel, targeting returns in the mid-teens for new projects and over 20% for brownfield expansion and consolidation projects. The mood is one of "cautious optimism", according to Wood MacKenzie corporate analyst Tom Ellacott. "I don't think you're going to see a surge of investment next year," he says. "You may see a small improvement." Investo
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
