A Reset was the dominant theme from the Oil Majors’ third quarter earnings calls. A reset of long-term oil and gas price assumptions and a reset of portfolios to focus on the most competitive hydrocarbons and lower carbon assets, while playing to companies’ existing strengths.
Across the board third quarter earnings were impacted by lower prices for both gas and liquids. The weak macro outlook led companies to adopt a more conservative commodity price view for 2020. More cautious, long-term price assumptions saw some companies report impairments in the quarter. There were also warnings from analysts that if the macro conditions persist, companies may be forced to slow the pace of buyback programmes.