Document summary
This report examines the seven super-majors’ potential future project portfolio looking at production and capex using Rystad Energy’s UCube Upstream database (as at July 2014). The oil & gas sector is currently facing pressure from investors to focus on capital discipline, and several majors have stated that their capex will either fall or stay flat over the coming years. In order to sustain shareholder returns, companies should focus on low cost projects, deferring or cancelling projects with high breakeven costs. Capital could be redeployed to share buybacks or increased dividends. Investors may wish to push companies for more detailed disclosure of project level economics, and challenge developments that carry an undue risk of wasting capital and destroying value.