From Yahoo Finance: 2025-04-28 11:29:00

Big Oil faces financial strain as Trump’s trade war and volatile markets threaten shareholder returns and drilling plans. BP, Chevron, Exxon, Shell, and TotalEnergies may cut spending on new projects. Analysts predict prioritization of share buybacks and dividends over capital expenditure to maintain investor appeal.

The five supermajors are expected to report $22.5 billion in profits for Q1, 11% higher than the previous quarter but half of 2022 levels. Shell anticipates a strong quarter, while Chevron may need to increase debt to fund buybacks and dividends. US shale producers are cutting spending due to falling cash flow.

Globe-spanning oil giants face challenges from Trump’s tariffs, impacting supply chains and financial health. BP’s US onshore business is shielded from tariffs, but its offshore sector relies on imported steel. Decision-making will hinge on oil’s price and tariff effects, with operational changes likely to take time.

Read more: Trump’s Desire for Cheap Crude Puts Big Oil’s Plans to Test