As global oil prices continue to decline, international energy giants are demonstrating divergent strategies. ExxonMobil Corp. (NYSE: XOM) announced last Friday that it will maintain its stock buyback program despite Brent crude falling below $65 per barrel, contrasting sharply with BP Plc and Chevron Corp., which both announced cuts to repurchases this week.
Supported by increased production from cost-efficient projects in Guyana and the Permian Basin, the Texas-based energy giant reported adjusted first-quarter earnings of $1.76 per share, aligning with market expectations. The company executed $4.8 billion in share buybacks during the quarter, reaffirming its commitment to a $20 billion annual repurchase plan through 2026. Chief Executive Officer Darren Woods stated, Our competitive advantages will continue to drive progress toward our 2030 goals and beyond in this uncertain environment.
ExxonMobil is accelerating the launch of 10 new projects this year, including oil developments in Guyana, the Permian Basin, and Brazil, liquefied natural gas (LNG) ventures along the U.S. Gulf Coast, and chemical expansions in China. Chief Financial Officer Kathy Mikells emphasized that the buyback commitment remains intact as long as commodity prices stay at “reasonable levels,” with financial projections anchored to a $65-per-barrel oil price benchmark.
In contrast to ExxonMobil, European counterparts face heightened challenges amid the energy transition. BP slashed its share buybacks by more than half and reduced 2025 capital expenditures, while TotalEnergies SE maintained shareholder returns but resorted to additional borrowing. Analysts note that ExxonMobil currently requires oil prices of $88 per barrel to cover capital expenditures and shareholder returns—higher than Shell and BP—yet its debt levels remain significantly lower than peers.
While Chevron Corp. surpassed earnings estimates with first-quarter adjusted EPS of $2.18, it reduced second-quarter buybacks by 30% to $2.75 billion. Chief Financial Officer Eimear Bonner acknowledged that market fundamentals are softening due to the Trump administration’s tariffs and OPEC’s supply increase plans. The company faces operational risks: a critical arbitration hearing this month over its $53 billion Hess Corp. acquisition (which includes Guyana assets), OPEC quota constraints at Kazakhstan’s Tengiz megaproject, and delayed gas expansion plans in Israel due to geopolitical tensions.
According to RBC Capital Markets, Chevron needs oil prices at $95 per barrel—the highest among peers—to breakeven after covering capital spending, dividends, and buybacks. To mitigate pressures, the company has implemented cost-cutting measures, including a 20% workforce reduction and a 25% cut to low-carbon investments. Notably, Chevron’s production in Kazakhstan and the Permian Basin rose 20% and 12% year-on-year, offsetting output losses from asset divestments.
The global oil industry is enduring its toughest challenges since 2014, with Brent crude down 17% year-to-date. Shell Plc affirmed its commitment to capital spending plans, with CFO Sinead Gorman noting, It’s harder for companies that haven’t positioned themselves as effectively. As the sector navigates this downturn, the diverging paths of energy majors—shaped by contrasting strategic choices—could redefine the future global energy landscape.
