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ExxonMobil's (XOM +0.2%) 7.5% Y/Y decline in oil and gas output (Q3 earnings) shows how hard it...

ExxonMobil's (XOM +0.2%) 7.5% Y/Y decline in oil and gas output (Q3 earnings) shows how hard it is for the energy giant to keep replacing declining production, let alone grow, Christopher Helman writes. It’s becoming clear that only through JVs with giant state-controlled companies in places such as Russia or Qatar that XOM can generate meaningful growth.
Comments (2)
  • This has been an issue at xom for many years. Presumably management knows about it too.

     

    Based on the increase in the value of my xom position over the years, they seem to have figured out a way to deal with it.
    1 Nov 2012, 12:48 PM Reply Like
  • I would disagree with the assessment that they have no prospect for future growth. The Kearl oil sands project comes online in the next few months, which will initially generate 160,000 barrels a day. They also have a couple very large fields in the Gulf, the Hadrian which has at least 700 million barrels and the Julia field which has one billion barrels. Add that to the joint ventures with Roseneft and other projects and I think they are fine.
    1 Nov 2012, 03:44 PM Reply Like
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