From Quiver Quantitative:

The oil industry, or ‘Big Oil’, saw a significant drop in profits in 2023 compared to 2022. However, major oil and gas companies like BP, Chevron, Exxon Mobil, Shell, and TotalEnergies collectively returned over $111 billion to shareholders through dividends and buybacks. Investor interest has waned due to the rise of the tech sector, oil price volatility, and growing environmental concerns. The industry’s commitment to investment discipline and environmental responsibility will likely define the sector’s trajectory in the coming years. Exxon Mobil led the sector in shareholder returns, distributing $32 billion in 2023.

The sector’s strategy is marked by a clear divide between American and European companies, with the former focusing on boosting oil production and the latter allocating more capital to low-carbon and renewable ventures. Despite profit decline, the oil industry is focusing on consistent returns and shareholder appeasement. Big Oil’s ability to sustain high returns while navigating energy transition remains crucial and investor sentiment and energy demand trends will determine the sector’s long-term prospects. Increased transparency and sustainability efforts could rebuild investor confidence. The leading oil companies have remained focused on maintaining investor confidence by ensuring predictable returns and demonstrating financial discipline. Despite conflicting transatlantic strategies, these companies are promising stability, higher payouts, and responsible environmental practices.



Read more: Big Oil’s Record Returns in 2023: Balancing Profit and Sustainability