Analysts believe the big international oil companies will be forced to curb generous dividend rises, rein in soaring investment spending and may even cut back on jobs, after four years of complaining of difficulties in finding staff.
January 25th, 2009:
Shell and BP profits could be hit by crude collapse
The partys over for Big Oil
Earnings will be dismal. Theyre all under pressure to cut costs. The sharp drop in oil and gas prices has tremendous far-reaching ramifications on the landscape, Gheit said.
Speculation on Exxon Acquisition of Royal Dutch Shell growing
Speculation has been growing as to whether Exxon will make an acquisition, possibly for BG Group or for all or part of Royal Dutch Shell.
Shell in worst profit slump for 10 years: profits have collapsed by 62% in the fourth quarter
Shell is still bruised by its experience in the late 1990s when the price of oil fell to a 25-year low. The company responded in 1999 by slicing $6.2bn off its $15.7bn capital expenditure programme, which included a $3bn reduction in its budget to explore for new sources of oil. This contributed to the reserves scandal of 2004, when the company had to downgrade a fifth of its reserves, resulting in the departure of chief executive Philip Watts.
Shell set to report a near 50% collapse in fourth quarter earnings
Outgoing chief executive Jeroen van der Veer, who will be replaced by Peter Voser in July, faces a difficult end to his time in office as analysts warn that the major oil companies will this year have to scale back investment programmes and even cut jobs.