Article: Did Exxon only make $39 Million onshore U.S. last quarter ?

[Jabbar + 465]

 

"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

[Guest]

Where's the article man? 

[cbrasher1 + 272]

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

[Rob Kramer + 696]

https://ieefa.org/ieefa-update-exxonmobil-abandons-goal-of-quick-cash-from-permian-fracking/

[Rob Kramer + 696]

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. 

[Jabbar + 465]

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

[Rob Kramer + 696]

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 . 

[Jabbar + 465]

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