Big Trouble At ExxonMobil ?
Posted by Big Gav in exxon, oil, peak oil
Zero Hedge has an article by SRSrocco on Exxon's inability to increase oil production as production costs rise - END OF THE U.S. MAJOR OIL INDUSTRY ERA: Big Trouble At ExxonMobil.
in 1997, Exxon spent $11.8 billion on capital expenditures while producing 2.5 million barrels per day (mbd) of oil. However, their capital expenditures nearly tripled to $34 billion in 2012 as total liquid production fell to 2.2 mbd. Basically, Exxon spent three times more money in 2012 to produce 300,000 barrels per day less than it did in 1997. ...It seems as if Exxon realized early on that peak oil had finally arrived (privately, of course), so it decided to not waste too much money on future oil projects. Instead, the company spent a massive amount of money on stock repurchases over the past two decades... especially since 2005.
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