Big Oil Supermajors Are Continuing to Embrace Oil & Natural Gas: Why the Smart Money Is Flowing Into Fossil Fuels Again
Over the past few years, there’s been a lot of noise around the so-called “energy transition.” But the latest moves from the world’s largest oil and gas companies—BP, Shell, ExxonMobil, Chevron, and TotalEnergies—make one thing crystal clear: oil and natural gas aren’t going anywhere anytime soon.
In fact, the biggest players in the global energy market are doubling down on hydrocarbons after disappointing returns from green energy experiments. For investors and professionals in the energy sector, this is welcome news. It signals a return to fundamentals, stable growth, and long-term profitability.
BP and Shell Pivot Back to Their Core
Let’s start with BP. After years of trying to reinvent itself as a green energy company, BP recently announced it’s reversing course. The British supermajor is now increasing its oil and gas investment by a staggering 25%, while slashing spending on its low-carbon ventures by 70%. This move comes following pressure from activist investor Elliott Management, which pushed BP to face the hard truth: the green transition hasn’t paid off.
BP plans to launch 27 new oil and gas projects over the next five years, including a major natural gas development in Trinidad and Tobago and oil projects in Iraq. While the company still expects its 2030 production to be slightly below 2019 levels, the crucial point is that it’s no longer cutting production as once planned. That’s a huge shift—and one that’s good news for the oil and gas workforce, service companies, and investors alike.
Shell, meanwhile, is focusing on what it does best: liquefied natural gas (LNG). After seeing lackluster returns from wind and solar, Shell is now prioritizing gas growth with a strategy aimed at increasing LNG sales by 4–5% annually through 2030. It’s also reducing overall capital expenditures to become more efficient and profitable in the process. Shell’s return to hydrocarbons reinforces what many in the U.S. already know: the world still runs on oil and gas.
U.S. Supermajors: Staying the Course—and Winning
Unlike their European counterparts, Exxon, Mobil and Chevron never strayed far from their roots, and they’re reaping the rewards. While others were experimenting with large-scale renewables, U.S. majors stuck with oil and gas—and are now outperforming across the board.
Exxon plans to increase its oil and gas production by 18% over the next five years, and Chevron is actively growing through major acquisitions like its purchase of Hess Corporation, which brings valuable assets in Guyana into its portfolio. Chevron also recently expanded its massive Tengiz field in Kazakhstan, adding 260,000 barrels per day of new production capacity.
These aren’t the moves of companies planning to wind down operations. These are confident, forward-looking investments into the world’s most dependable energy sources.
What This Means for the Industry
For the broader oil and natural gas industry, this renewed focus is great news. It validates what many insiders have long argued: hydrocarbons remain the backbone of global energy. The world simply isn’t ready to run on wind and solar alone, and investors are taking notice.
Even better, this pivot opens up new opportunities for direct participation in oil and gas investments, particularly in domestic plays and long-term production projects. As majors lead the charge, independent producers and investors have a clear signal: demand is here to stay, and the market is healthy.
In short, we’re witnessing a major reset. Big Oil has realized that chasing the “green dream” too quickly can come at a high cost. Now, with a renewed focus on profitable, proven energy sources, the oil and gas industry is well-positioned for another strong decade—and that’s something worth celebrating.
