Monday, February 15, 2010

Exxon Invests

"Hardly known as a wildcatter, Exxon Mobil Corp. is searching for oil in most of the world's regions where high-risk exploration is under way, even as other bog pil companies are being more selective and cutting capital spending. ... Exxon said capital spending reached $27.1 billion last year, up 3.6% from a year earlier. Fourth-quarter spending reached $8.3 billion, Exxon's highest three-month total ever. Exploration expenses charged to income, which capture spending on unsuccessful wells, rose 39% last year. ... Exxon is exploring in eight of the 'hot,' high-risk exploration regions around the world identified by Sanford C. Bernstein and is attempting to invest in a ninth. Aside from Royal Dutch Shell PLC, which is nearly as active, most other oil companies have interests in only half as many such areas, at most", Russell Gold at the WSJ, 2 February 2010, link:

Exxon is better off putting dollars in the ground than holding them. Exxon apparently believes $75 oil is cheap. So do I.

1 comment:

Anonymous said...

Earl... the new reserve currency...