Oil Majors' $100 Hangover Hurts Profit as Cost Cuts Fall Short
- Shell, BP costs surpass 2005, when oil last averaged in $50s
- Exxon, Shell, Total forecast to have worst quarter since 2005
Oil Outlook: How High Will It Go?
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The world’s biggest oil companies, set to report their worst quarterly earnings in more than a decade, are finding their cost-cutting efforts haven’t matched the decline in crude prices over the past two years.
While producers have been deferring projects, eliminating jobs and freezing salaries, the process will take three years to complete, according to Barclays Plc’s Lydia Rainforth. In the meantime, profits are being hammered.