Oil majors in the past two weeks have committed to cutting costs this year as the price of oil continues a nearly yearlong slump that analysts and federal forecasters say could last well into 2026.
Executives at Exxon Mobil, Chevron, Shell and ConocoPhillips said during fourth quarter earnings calls that they’re looking to slash billions of dollars from their budgets while also either increasing or maintaining their shareholder dividends and stock buybacks.
Analysts said most of the oil majors began making cuts in earnest last year. Oil prices have struggled to rise above $70 per barrel of global benchmark Brent crude since March 2025, according to the U.S. Energy Information Administration.
EIA has forecast that oil prices could sink to an average of $56 per barrel of Brent crude in 2026 — a 19 percent decrease from the 2025 average price. By 2027, EIA estimates Brent could slip further to an average of $54 a barrel.
