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OIL NEWS * USA - Race for resources tightens as crude prices march ever higher
Exxon Mobil Corp is the world's biggest oil company. While other companies have increasingly boosted oil and gas reserves through acquisitions, Exxon stuck to the drill bit, scouring the globe for new fields and making big, long-term investments to find, develop and produce petroleum
San Francisco,CAL,USA -MarketWatch, by Jim Jelter -Jul 26, 2007: -- This has kept Exxon at the head of its class in the reserve replacement derby so closely watched in the industry. Simply put, reserve replacement measures a company's ability to find oil as fast as it pumps it. Anything less means the company is going backward... Today Exxon announced it went backward. Its second-quarter earnings report showed a production decline of 1% from a year ago... All this means Big Oil's romping ground is shrinking. The "easy" oil is long gone, the rest is getting harder to find, and competition for it is tougher than ever... If there's any silver lining in all this for investors, it's that tight supplies and surging demand are keeping plenty of upward pressure on prices. Crude futures topped $77 a barrel Thursday in New York. And the view that energy prices can only go higher in the long run has supported a 15% increase in Exxon's share price this year... But higher crude prices cannot offset losses from a creeping production decline for long. Which is why Wall Street goes so glum on the sector when its leader stumbles -- even just a little bit...
Labels: oil prices
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