User 201845

Exxon Mobil Appears at Lower End of Valuation Range

I believe that you need to look at the typical international agreement with major producing countries to gain an understanding of the data. Most agreements with major oil producing counties give a margin so to speak to the major oil company to cover operating costs and profit; therefore when oil prices are high (above $100/bbl) the producing country retains more of the proceeds from the oil produced and and the major oil company receives a lower percentage of the total oil reserves than when oil is in the $60-$80 range.