Big Oil Accelerates Transformation Plans to Rebuild Shareholder Value
Weak shareholder returns in the oil and gas sector, coupled with a pandemic-induced demand shock, are challenging the industry. O&G companies are under pressure to choose between increased diversification and greater discipline as their primary strategy for creating value and winning back investor confidence, according to a new report released today by Boston Consulting Group (BCG).
The pandemic has caused international oil companies (IOCs) to accelerate their plans to reinvent themselves for a new energy landscape. With less capital available to spend, they face starker decisions on how to allocate it. Regardless of their approach, companies must prove to investors that they can create sustained value. BCG’s report, Diversification Versus Discipline: Value Creation in Oil and Gas 2021, analyzes total shareholder returns (TSR) across large oil and gas companies globally and offers insights gained from a survey of 150 institutional investors in oil and gas.