ConocoPhillips hopes less is more as it cuts downstream assets

ConocoPhillips is cutting free its volatile downstream assets and returning to its E&P core. Does this mark the beginning of the end for the vertically integrated oil-company model?

After a decade of growth that tripled its market value, ConocoPhillips has decided that bigger is no longer better. On 14 July, the Houston-based, vertically integrated company announced plans to spin off its downstream operations into a separate, publicly traded entity in the first half of 2012, shedding its status as one of oil’s majors.   Chief executive Jim Mulva, who plans to retire after the split, said: "We believed the integrated model was the best approach for us. It provided an opportunity to expand our resource base and increase our earnings at competitive returns. We took the approach that all of our business lines needed size and scope to compete with the largest companies