for Corporate earnings
The oil majors are posting their best quarterly figures in years, an indication that they are adapting to the new price environment. After several years of spending cuts and rising debt, the largest integrated oil companies have turned a corner.
Independent producers are struggling to hit output targets at current price levels while the majors are focusing on becoming more efficient.
The oil majors reported very dismal numbers for the first quarter, but earnings exceeded market expectations largely because of earnings from their downstream units: Refining operations have allowed the large integrated oil companies to weather low oil prices much better than upstream E&P companies.
Although the oilfield service giants will undoubtedly survive, there’s a lot of uncertainty going forward, prompting them to focus on cost per barrel optimization and improving efficiency