Big Oil Offers Record Returns to Lure Investors Back

• The top five Western oil and gas firms, including BP, Chevron, Exxon Mobil, Shell, and TotalEnergies, returned over $111Bn to shareholders in 2023 through dividends and share repurchases, slightly exceeding the $110Bn returned in 2022.
• The oil and gas firms experienced a significant drop in net profits in 2023 to $123Bn, compared to the record $196Bn in 2022 when energy prices surged following geopolitical events. Despite the decrease, companies aim to reassure investors amid uncertain prospects for fossil fuels.
• Amid geopolitical turmoil and economic uncertainty, Chevron CEO Mike Wirth emphasized the commitment to delivering higher returns and lower carbon, seeking to maintain confidence among investors, including pension funds traditionally attracted to the sector for steady dividends.
• The energy sector's influence on the S&P 500 has diminished, accounting for 4.4% of the index by January 2024, down from around 14% in the last decade. Factors such as the tech sector's rise, oil majors' performance issues, and increasing environmental concerns contribute to the reduced interest in the energy sector.

(Source: Reuters)