• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 12 minutes The Plastics Problem
  • 3 hours SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 3 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 8 hours IMO 2020
  • 1 hour Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 6 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 8 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 10 hours EIA reports 12 mm bbls Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 10 hours Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 9 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 6 hours On the hobby side of things
  • 28 mins Democrats Green Beauty Pageant
  • 9 hours Oil Demand Needs to Halve: Equinor
Alt Text

Two Events That Will Determine Oil Prices

The next couple of weeks,…

Alt Text

Libya’s Oil Production Could Double Within 5 Years

Frequent field outages and security…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Why Chevron And Shell Are Better Bets Than BP and Exxon

Want to invest in the oil majors? Take a look at Chevron and Royal Dutch Shell, but steer clear of ExxonMobil, BP, and Total.

That is the conclusion from a new analysis from Tudor, Pickering, Holt & Co., which identified Chevron and Shell as the best of the lot. The reason for choosing Chevron, for instance, is that the American oil major will have high-margin growth, largely due to the completion of several large-scale projects. The Gorgon LNG project is one example – with huge capex requirements behind it, Chevron will enjoy free-cash-flow turnaround. Tudor Pickering Holt also likes Chevron’s “top quality” Permian Basin assets.

For Shell, it is much more about the dividend, which Tudor Pickering describes as “safe.” Shell is in the midst of a $30 billion asset sale, which could be difficult to pull off. But Tudor Pickering is more optimistic, calling the disposal campaign “achievable,” helping Shell to slash its debt pile and return to share buybacks.

If Tudor Pickering Holt is keen on Chevron and Shell, it is less so on some of its peers. BP has a “stretched” balance sheet, in large part because of its massive liabilities related to the 2010 Deepwater Horizon disaster. Total has high debt levels and a dearth of new long-term projects, which could hurt growth. And what about the world’s largest publicly traded oil and gas company? Tudor Pickering Holt argues that Exxon faces growth challenges as well, “which should weigh on its premium valuation.” Related: Big Oil Could Spark A Renaissance In U.S. Shale

The oil majors were not without their own news in recent days. Exxon announced a very large oil discovery off the coast of Guyana, which might go a long way to improving its growth prospects. Separately, Chevron and Exxon, along with some partners, announced their decision to move forward with a $37 billion expansion of the Tengiz oil field in Kazakhstan, one of the largest final investment decisions in two years. Investors may differ on whether or not the decision is a smart one, but the oil majors are clearly still pursuing growth.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News