THE Exxon Mobil Thread pt 2 (merged)

[MD]

gee, that investment makes their 300 million algae research effort look pretty pitiful.

Their LNG tanker fleet pales in comparison too.

If EM is really queued up to dump $150b into oil development I guarantee there will be a return on that investment. That's their whole bankroll.

[vtsnowedin]

gee, that investment makes their 300 million algae research effort look pretty pitiful.

Their LNG tanker fleet pales in comparison too.

If EM is really queued up to dump $150b into oil development I guarantee there will be a return on that investment. That's their whole bankroll.

Well Duh!! An experienced corporation chooses to invest in more crude oil exploration vs. R&D in algae oil. Perhaps they have made the wrong bet, but do you want to bet against them?

[pstarr]

gee, that investment makes their 300 million algae research effort look pretty pitiful.

Their LNG tanker fleet pales in comparison too.

If EM is really queued up to dump $150b into oil development I guarantee there will be a return on that investment. That's their whole bankroll.

Well Duh!! An experienced corporation chooses to invest in more crude oil exploration vs. R&D in algae oil. Perhaps they have made the wrong bet, but do you want to bet against them?

he has already

[dissident]

gee, that investment makes their 300 million algae research effort look pretty pitiful.

Their LNG tanker fleet pales in comparison too.

If EM is really queued up to dump $150b into oil development I guarantee there will be a return on that investment. That's their whole bankroll.

I am not so sure the board of Exxon is composed of genius material. They just keep doing what they did before and hope it produces the same result. A lab rat could do more. Eventually, and this would be in the current period, this sort of BAU reflex fails. After their admission that 2012 will see production declines, it will most likely be that the next five years will see the same pattern. Then there will be lots of agitation from the shareholders about $30 billion per year being wasted. The shareholders are unlikely to be peak oil believers since peak oil is for the "fringe", so they will not attribute the declines to cold hard reality but will think it is management incompetence. Maybe by 2025 the world will have woken up from the current delusion that it is in.

[prajeshbhat]

I am not so sure the board of Exxon is composed of genius material. They just keep doing what they did before and hope it produces the same result.

Exxon Mobil Corp., Chevron Corp., BP and Royal Dutch Shell all produced less crude last year than in the prior year.

Well, they don't have to do anything. With the oil-prices continuously rising and everything.

Take a look.

[dissident]

Well, they don't have to do anything. With the oil-prices continuously rising and everything.

Take a look.

It's too good to be true. This picture cannot be extrapolated into the future past a couple of years. With enough price rise the global economy starts to shrink and then the profits start to drop due to both consumption decline and price reduction. There seems to be lots of articles these days claiming that we are not in a situation similar to 1980. I don't think they had multi-trillion injections of liquidity back then. And these fixes appear to be wearing off already.

[Keith_McClary]

By the year 2030, the world needs to invest approximately 30 trillion USD to meet global energy demand.

This was from some EIA or IEA report, can't find the original, but quoted here.

$150B is 0.5% of $30T. Every little bit helps.

[Serial_Worrier]

so by 2030, the world will invest $1 to get $1. Why even bother?

[prajeshbhat]

It's too good to be true. This picture cannot be extrapolated into the future past a couple of years.

I really don't think anyone in the board of Exxon cares about whats going to happen a couple of years from now. The farthest they might be worrying about is the Christmas bonus. It seems they have done a good enough job to make record profits for this year already.

Prices are at high levels not seen since 2008 already. Only a matter of time before it beats the $147 per bbl record. Yay.

[SeaGypsy]

I thought it was more like borrow $1 to make 10c with an unknown future interest rate?