The oil 'supermajors' are due to release their second-quarter results this week.
The oil 'supermajors' are due to release their second-quarter results this week.

All eyes on the kings of black gold



Investors across the world will be keeping a close eye on the energy giants this week.

With Brent crude, the European benchmark, trading above US$100 for the past three months, oil prices are expected to drive earnings when the big players report second-quarter results in the next few days.

This will also be a time of self-examination.

ConocoPhillips, the third-biggest oil company in the US, announced this month it would split its exploration and production operations from its refining arm to form two companies.

The move brings an end to a 15-year stretch of acquisitions and mergers that led to the creation of the supermajors - huge companies whose ranks include ExxonMobil and BP.

The decision by ConocoPhillips raises questions about the future growth of these organisations, which are involved in every stage of oil delivery, from well-boring to lubricant sales in petrol stations.

"Every big oil company will like to review their strategy," says Louis Besland, a vice president at the consultancy AT Kearney. "At a time when there are new sources of energy - like solar, like nuclear - the oil becomes more and more expensive to get [out of the ground]."

The actions of the oil giants will have an impact on the Middle East region - and in particular Abu Dhabi, where four of the world's five biggest energy companies, ExxonMobil, Shell, BP and Total, hold stakes in enormous concessions.

The emirate was also the site of a withdrawal by ConocoPhillips, which won the rights to develop the Shah sour gas field in 2008 but pulled out last year because of the tough financial terms.

Its replacement, announced this year, was not one of the supermajors but Occidental, a US company that focuses on exploration and production.

That underlines a study by AT Kearney of 50 energy companies showing that the specialised players performed better for shareholders than their larger counterparts.

"The market, rightly or wrongly, favours clear models," says Mr Besland. "They prefer models where you have a clear upstream company, where there's a clear focus."

Against that backdrop, The National looks at the challenges oil companies face in the second half of the year.

A Cat, A Man, and Two Women
Junichiro
Tamizaki
Translated by Paul McCarthy
Daunt Books 

MATCH INFO

World Cup qualifier

Thailand 2 (Dangda 26', Panya 51')

UAE 1 (Mabkhout 45 2')

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%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Chad%20Stahelski%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Keanu%20Reeves%2C%20Laurence%20Fishburne%2C%20George%20Georgiou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
Super Saturday race card

4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Blackpink World Tour [Born Pink] In Cinemas

Starring: Rose, Jisoo, Jennie, Lisa

Directors: Min Geun, Oh Yoon-Dong

Rating: 3/5