For Exxon and Shell, Age of Ultramajors Comes at the Wrong Time
- Despite their size, both companies suffering with cheap oil
- Exxon and Shell cutting spending as fast as everyone else
As oil and gas prices have tumbled, Exxon and Shell have been forced to retreat. With oil barely above $30 a barrel, they’re cutting spending, including some costly, high-risk mega-projects.
Photographer: George Osodi/BloombergThis article is for subscribers only.
This may not be the best time to be bigger than big.
The $64 billion tie-up of Royal Dutch Shell Plc with BG Group Plc and the steady growth of Exxon Mobil Corp. are creating a new league of two: the ultramajors. Executives at smaller companies are even starting to joke that Chevron Corp., Total SA, BP Plc, ConocoPhillips and Eni SpA are merely the mid-cap sector of Big Oil.