Oil Majors Scraping For Barrels At the Bottom of The Ocean

Following up on the last post regarding peak oil and the demise of easy oil, today’s Wall Street Journal has several articles spotlighting the plight of oil majors:

While the details differ, the general theme remains the same — oil majors are forced to settle for 2nd tier projects due to being locked out of the best prospects, which themselves pale in comparison to the giant fields of Saudi Arabia or the once mighty Canterell Field in Mexico once you take into account the effort needed to exploit these new opportunities.

BP is buying Devon’s energy deep water assets at a fair price with little boost expected in their production profile for a few years. While Exxon’s deal to buy XTO will have more an immediate impact on production rates, analysts fear it to be a lower-return venture then the oil major has traditionally pursued. While US natural gas may be plentiful and repeatedly exploitable, it is also landlocked and subject to domestic pricing pressures.

Both instances confirm the days of easy oil are over.

More on this topic (What's this?)
How Connected Are Oil Majors To The Price Of Oil?
Jim Chanos is Shorting Oil Majors - Which One?
Jim Chanos is Shorting Oil Majors – Which One?
Read more on Oil & Gas Majors at Wikinvest

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