Viewpoint: Mood Swings at the Majors

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The recent round of earnings of Western oil majors showed a stark divide between US-based and European-based firms, with natural gas and LNG stuck in the middle of the narrative. US majors have for the most part been rewarded by investors for leaning stronger into fossil fuels, when the European majors have been pushing harder for greener investments. As a result, Chevron and Exxon Mobil currently trade at share price multiples of 12 to 13 times forward earnings while European majors trade at roughly half that. The existential crisis could run deeper for Euro majors: The Financial Times reported that Shell considered dropping its London listing and moving to the US to appease upstream-minded investors.

Low-Carbon Policy, Gas Supply, Gas Demand, Earnings, Majors, Renewable Electricity
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