longoil

Is Exxon Betting on $100 Oil?

>>>Of course, the bigger the numbers the greater the chance that Ghana will renege on the current deal.<<<

Jeep,

I would not put Ghana in the same category as corrupt (or more corrupt) African nations. Ghana is a relatively a safe and secure African country to do business in. Ghana is a relatively non-corrupt country compared to its African neighbors and many other nations around the world.

Check the Corruption Perception Index:
en.wikipedia.org/wiki/...

USA is #18
Ghana is #69
Nigeria is #121

I think Exxon is a smart company for chosing to do business there and they will have an easier time in Ghana than Shell is having in Nigeria right now.

Is Exxon Betting on $100 Oil?

According to a Oct 6th CNN article, T. Boone Pickens predicts $100 oil next year, if a global economic recovery occurs.

If the US does not implement an energy independence plan within the next ten years, he sees oil going to $300.

money.cnn.com/2009/10/...

Is Exxon Betting on $100 Oil?

Every major oil company in the world is betting on $100+ oil.

The deep sea fields of the coast of Brazil, only become profitable when oil is $90+.

Every major player (XOM, CVX, TOT, Shell, BP) has a stake in the Canadian oil sands and you need $50 to $70 oil to make a profit there.

Most of the easy to lift oil (i.e. sweet and light) is gone. We are stuck with heavy sour oil, oil sands, deep sea oil and GTL.

8 Possible Targets for Exxon's Cash

I agree with most of the potential buyout targets, except Suncor. Exxon already has a 25% stake in Syncrude (the other major oil sands producer) through its ownership of the subsidiary Imperial Oil. I don't think the Canadian government would allow this scenario.

Exxon will most likely continue its current path of artificially increasing share holder value via share buy backs. At the current rate, Exxon will be a private company with no shares listed by 2020. But its reserves will be mostly depleted by then if it doesn't develop or acquire new ones. The economic slump has setup many excellent buying opportunities as the author has stated.

Too Soon to Re-enter Oil Stocks?

Perfect time to buy; Low stock prices, end of summer driving season is near and winter heating season will begin soon. Historically, late August to early September are excellent entry points for oil stocks.