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
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
