As one of the lieutenants of the former BP boss John Browne, Tony Hayward had a front-row seat at the creation of the oil supermajors. He was to captain one of the premier-league behemoths created by the wave of mega-mergers in the late 1990s. But speaking in Abu Dhabi this month, he now seems to have cooled on the business model he helped to pioneer.
With oil prices touching record lows of about US$10 per barrel in 1998, the industry became convinced that bulk was a winning strategy. In response to the internet mania and "New Economy" companies such as the gas trader Enron, Big Oil needed a compelling story.
The majors argued that acquiring smaller competitors would allow them to cut costs, eliminate redundant staff and execute the large opportunities opening up in deep water and the former Soviet Union.
Oil supermajors must rethink their game plans - The National
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