Jabbar + 465 JN November 20, 2019 (edited) "The IEEFA analysts said . . . . Exxon earns billions of dollars in profits from its global operations each quarter, but almost nothing from its U.S. onshore assets, offering evidence that the company’s shale business is not offering much of a return at all. In the latest quarter, Exxon only took in $39 million from its U.S. business, despite spending $3 billion, or 39 percent of the company’s global spending, IEEFA calculated." DOESN'T THE IEETF UNDERSTAND THAT THE OIL MAJORS THAT HAVE WORLDWIDE OPERATIONS USE "TRANSFER PRICING" TO MOVE ALMOST ALL THEIR U.S. PROFITS OFFSHORE TO FOREIGN DOMICILED SUBSIDIARIES. NONE OF THE IOCs SHOW MUCH U.S. PROFIT AND PAY LITTLE TO NO U.S. INCOME TAX IN THE STATES. TRANSFER PRICING . https://oilprice.com/Energy/Crude-Oil/Is-Big-Oil-Wasting-Its-Time-in-The-US-Shale-Patch.html Edited November 20, 2019 by Jabbar Quote Share this post Link to post Share on other sites
Guest November 20, 2019 Where's the article man? Quote Share this post Link to post Share on other sites
cbrasher1 + 272 CB November 20, 2019 1 hour ago, DayTrader said: Where's the article man? https://oilprice.com/Energy/Crude-Oil/Is-Big-Oil-Wasting-Its-Time-in-The-US-Shale-Patch.html 1 Quote Share this post Link to post Share on other sites
Rob Kramer + 696 R November 20, 2019 https://ieefa.org/ieefa-update-exxonmobil-abandons-goal-of-quick-cash-from-permian-fracking/ Quote Share this post Link to post Share on other sites
Rob Kramer + 696 R November 20, 2019 The IEEFA related links look quite hostile to fracking . From an investment standpoint it's not the best "bang for your buck" in return. But from a massive company standpoint they have operations in many different areas and oil types. If they want to grow production numbers fast, have a play on higher oil potential that may be a year or years out (from when they started fracking), or think they can consolidate the local fields paying pennies on the dollar or even just want to hire fellow Americans in good jobs. I dont see the problem. If Saudis oil feild restart didnt happen so quick and/or trade deal happened and wti was 70$ they would have looked real smart. Quote Share this post Link to post Share on other sites
Jabbar + 465 JN November 20, 2019 (edited) 14 hours ago, Rob Kramer said: The IEEFA related links look quite hostile to fracking . Just like the author of the OP article. Quote From an investment standpoint it's not the best "bang for your buck" in return. Wrong, Chevron CEO said shale is best return in their portfolio. Quote they can consolidate the local fields paying pennies on the dollar The consolidation will start soon. Quote Exxon said they produce oil in Permian with breakeven sub $30. Exxon Permian producing 300,000 barrels day X $55 = over $6 Billion year . . . . and they make no more than $39 million in a quarter. LOL Exxon growing Permian to 1 million barrels day TRANSFER PRICING. ALL PROFITS MOVED OFFSHORE. PAY NO U.S. CORP INCOME TAX SMART Edited November 20, 2019 by Jabbar 2 Quote Share this post Link to post Share on other sites
Rob Kramer + 696 R November 20, 2019 I dont have the time to do due diligence on the matter. I wouldn't take a different companies statement as completely accurate as I wouldn't take what the article has said as completely accurate. From what I've seen in the stocks I've done due diligence on it's more expensive to have a quickly depleted well than a long term producer. I realize this may not be true everywhere . Quote Share this post Link to post Share on other sites
Jabbar + 465 JN November 20, 2019 (edited) 6 hours ago, Rob Kramer said: I dont have the time to do due diligence on the matter. I wouldn't take a different companies statement as completely accurate as I wouldn't take what the article has said as completely accurate. From what I've seen in the stocks I've done due diligence on it's more expensive to have a quickly depleted well than a long term producer. I realize this may not be true everywhere . Agree generally speaking a land based conventional wells will over time produce oil at a lower unit price than drilling numerous shale oil wells. However, most new oil exploration, development and production outside of the OPEC nations is OFFSHORE and has very drilling, startup and operation costs where the best payback is on the out years. Some believe oil prices will plateau and ultimately decline thus reducing the return for out years. Time value of money. Offshore requires upfront royalty agreement and ongoing costs of FPOS (Floating Production and Oil Storage Vessel). https://oilprice.com/Energy/Crude-Oil/Is-Big-Oil-Wasting-Its-Time-in-The-US-Shale-Patch.html Edited November 20, 2019 by Jabbar 1 Quote Share this post Link to post Share on other sites
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