Big Oil Shrugs at $60 Crude—for Now

Big Oil Unfazed by $60 Crude Prices for Now
By Tsvetana Paraskova – May 20, 2025, 6:00 PM CDT

Oil company executives have expressed confidence in their ability to weather the current market downturn and continue to provide dividends to shareholders. Despite the recent drop in oil prices to $60 per barrel, major international oil firms like ExxonMobil, Chevron, Shell, BP, and TotalEnergies reassured investors during their first-quarter earnings calls that it is business as usual.

The market downturn began in April after the first quarter ended, leading to lower cash flows in the second quarter compared to the first. However, executives remain optimistic about their companies’ ability to navigate the challenging market environment.

ExxonMobil, for example, exceeded analyst estimates due to increased production in Permian and Guyana. Chevron also remains positive about future cash flows, especially with developments in the Gulf of Mexico and Kazakhstan expected to drive growth.

Shell announced a $3.5 billion buyback program, continuing its trend of share repurchases. The company’s CFO, Sinead Gorman, emphasized Shell’s preparedness to manage uncertainties and maintain dividends even at lower oil prices.

Meanwhile, BP reduced its quarterly share buyback program following weaker-than-expected earnings, lower cash flow, and rising debt. TotalEnergies, on the other hand, remains confident in sustaining its buyback program despite the challenging market conditions.

Overall, major oil companies have only made modest cuts of 2% to their total capital expenditure guidance, indicating a cautious approach amid lower oil prices. Analysts predict that while Big Oil may not need to make significant changes at $65 per barrel, prolonged periods of prices below $60 could lead to adjustments in spending and buyback programs.

In conclusion, the oil industry is currently facing uncertainties, but companies are confident in their ability to weather the storm and deliver value to shareholders.