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Oil majors’ business model under increasing pressure

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Gorgon, a massive liquefied natural gas project off the north-west coast of Australia, is one of the wonders of the modern age. Its $54bn price tag makes it — in nominal terms at least — one of the most expensive engineering projects ever completed.

It could also be a monument to a fading era, the last hurrah of Big Oil.

With US crude hitting 12-year lows last week, some in the industry are asking whether the business model of large international oil companies such as Chevron, ExxonMobil and Royal Dutch Shell, the three principal partners in Gorgon, is fundamentally flawed.

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