Majors cheer business model resilience

摘要

The majors' scale and integrated business models have helped them weather the lower oil price environment, but their approach to the transition away from fossil fuels remains cautious. The companies have adapted to lower oil prices of around $50/bl, after two years of painful adjustment. "The business model of the majors is working better in this type of environment," Total chief executive Patrick Pouyanne says. Pouyanne and his BP counterpart, Bob Dudley, reminded the Oil and Money conference in London that the firms' mega-mergers of 1998-2001 created integrated oil giants with the scale to ensure resilience to oil prices below $10/bl. "Size matters in this business", as it allows the majors to cut costs more efficiently and spread risk across large portfolios, Pouyanne says.