Majors’ divestment dilemma
Depressed oil prices are forcing large-cap producers to roll back spending. But will they continue to try to shed non-core assets?
The equity markets had long been in a mood to reward large-cap international oil companies (IOCs) that pledged a very similar diet of capital disciple. Targeted spending in only the projects offering the best returns, lowered costs and cash returned to shareholders were firmly in favour. And high-grading the portfolio by divesting non-core or high-cost assets was a de rigeur part of the story. But no one expected or planned for an oil price of below $30/bl. Millions of extra barrels of oil have flooded the market in the past few weeks following the collapsed Opec+ talks. And the crisis is being aggravated by the Covid-19 pandemic, which has removed global energy demand on an unprecedented s
Also in this section
13 March 2026
Brussels is again weighing a cap on gas prices amid the Hormuz crisis, but the measure could backfire by deterring the LNG cargoes Europe urgently needs
12 March 2026
Emergency oil stocks provide a last line of defence to oil market shocks, so the IEA’s unprecedented 400m bl release represents something of a double-edged sword
12 March 2026
LPG could rapidly expand access to clean cooking across Africa and prevent hundreds of thousands of deaths from indoor air pollution each year, but infrastructure shortages and regulatory barriers are slowing investment and market growth
11 March 2026
Missiles over Dubai and disruption in Hormuz are testing the emirate’s reputation—and shaking the energy hub at the centre of the Gulf economy
