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Politics : View from the Center and Left

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To: KLP who wrote (6280)	12/7/2005 3:57:59 AM
From: Dale Baker	Read Replies (1) of 542590

Exxon currently has an operating margin around 15% and net margins around 10%. Shell and Conoco operate around 12% and 8%, operating and net. I imagine those numbers are higher than historical norms since much of the oil being sold at current spot prices was discovered and developed years ago. Drilling and exploration are way up - I saw a stat saying the number of drilling rigs is up 30-40% over 2004. But the total production doesn't seem to go up that much due to old fields being depleted and patchy success with new drilling. Energy is a very cyclical business, feast or famine. Grocery stores tend to run at a steady 1-2% net margin regardless.

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