Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: quasar_1 who wrote (153)	10/24/2000 2:22:58 PM
From: excardog	Respond to of 74559

quasar: Regarding high oil prices look over the following Exxon Mobil Corporation Announces Estimated Third Quarter 2000 Results IRVING, Texas--(BUSINESS WIRE)--Oct. 24, 2000--Exxon Mobil Corporation (NYSE:XOM - news): Third Quarter Nine Months 2000 1999 2000 1999 Net Income $ Millions 4,490 2,188 12,500 5,626 $ Per Common Share Assuming Dilution 1.28 0.62 3.55 1.60 Earnings Excluding Merger Effects/Special Items $ Millions 4,290 2,205 11,790 5,671 $ Per Common Share Assuming Dilution 1.22 0.62 3.35 1.61 Revenue - $ Millions 58,852 48,986 168,889 130,945 Capital & Exploration Expenditures - $ Millions 2,646 2,935 7,294 9,850 The interesting data besides corporate Americas largest quarterly profit is in the last column Capital & Exploration you will notice 2000 expense trails 1999 by roughly 2.6 billion or 26%. 1999 was a very soft year for capex due to the very depressed price of oil. So here we are October 2000, $33 dollars a barrel for oil and XOM the largest oil company in the world hasn't spent anywhere near last years budget and has just recorded a 4 billion dollar profit. There is a fly in the ointment here. Chevron and Texaco are to merge. Chevron has stated they are not at this time going to raise capex. I guess absorbing Texaco's assets are cheaper then drilling. I'm still trying to digest what all this means but with the world using 77 or 78 million barrels a day in oil it would on the surface suggest that oil companies might need to start searching for some. I doubt these wells are bottomless. Something to think about.