In the coming years, the power structure of global oil markets is set for a major shakeup if the reserve life of International Oil Companies (IOCs) continues to decline. The dwindling of investments, caused by a very tough economic environment and the growth of activist investing, has resulted in a major decline in new projects and the underdevelopment of existing or prospective opportunities. Citibank warned in a recent research note that IOCs, such as Shell, Exxon, and Chevron, are looking at a major decline of reserve/production life spans. According to Citi, the overall average reserves in place have fallen by 25% since 2015, with less than 10 years of total annual production available. These issues appear to have been under-assessed by financial markets, with analysts unable to accept that the very future of IOCs is under threat. An oil company can only exist if it has reserves and is […]