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Business risk for big Integrated Oil Companies


LongHaul
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I am researching some of the big Integrated Oil Companies (XOM, CVX) and have never invested in oil and gas.

What are the biggest long term business risks for these companies? 

 

Thank You.

 

Oil prices stay low, they dig up their low cost reserves to produce cash flows, not replace depleting resources due to shareholder pressures of focusing on the short term and/or OPEC keeping oil prices low and effectively letting the company go into liquidation.

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A quick and "dirty" google search found this:

 

http://www.wsj.com/articles/SB10001424052702303277704579348332283819314

 

Big Oil Companies Struggle to Justify Soaring Project Costs

Chevron, Exxon and Shell Spent More Than $120 Billion in 2013 to Boost Oil and Gas Output, but Production Is Down

 

That's just an example to basically what rishig already mentioned.

 

The other thing maybe future technology development, like electric cars combined with Gen 4 nuclear. But it may take some 20-30 years to develop.

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