Alpha Diallo
All posts from Alpha Diallo
Alpha Diallo in Alpha Diallo,

Problems with Big Oil

 (Image source: wired)

Third quarter earnings release from Big Oil companies such as Exxon Mobil Corporation (NYSE:XOM), ConocoPhillips (NYSE:COP), Chevron Corporation (NYSE:CVX), Royal Dutch Shell plc (ADR) (NYSE:RDS.A), and BP plc (ADR) (NYSE:BP) all showed the follow problems:

  •      Continued weakness in refining margins
  •      Increasingly higher exploration and production costs – Oil is just harder to find now.
  •      Weakness in the global economy is driving demand lower.

What can Big Oil do to bounce back? Big Oil should aggressively get involved in shale, which is a huge source in North America and cheaper. In addition, fracking and natural gas would be great investments in the future.