Quote:
Originally Posted by avb3
Exxon, from pressure due to a probe by SEC, are writing down their reserves by 19% of their worldwide number due to the large concentration of their reserves in the oil sands, the cost of recovery, and the low price of oil. In fact, Exxon thinks almost half their nominal reserve will have to be left in the ground.
http://www.nytimes.com/2016/10/29/bu...ound.html?_r=0
Exxon Mobil’s oil sand reserves in Canada’s Alberta province are a prime target for a write-down because they are particularly expensive to mine. Investments in oil sands have been slowing, and several oil companies have given up on the resource. Turning oil sands into a usable form of petroleum requires heavy processing and refining.
Because Exxon Mobil’s earnings on oil and gas exploration and production have been in decline, said Brian Youngberg, a senior energy analyst at Edward Jones, “it is increasingly hard for it to demonstrate its reserves as economical in today’s world of more moderate oil prices.”
“Scrutiny will continue to rise on this issue,’’ Mr. Youngberg said, “especially when it updates its reserves in early 2017.”
With the world’s oil industry producing over a million barrels a day more than global demand, few analysts expect oil prices to rise much through the end of the year — even though the expectation that the OPEC cartel may freeze or cut production in the coming months has moderately stabilized prices in recent months.
Other reports on the same issue:
http://www.bloomberg.com/news/articl...-extends-slump
https://www.ft.com/content/53f66878-...4-8b8e77dd083a
http://www.cnbc.com/2016/10/28/exxon...-reserves.html |
EXACTLY what the Saudis wanted by design. Leave Canada tar sand and marginal heavy oil in the ground. They have succeeded. OPEC wins this time.
Too bad Obama started it all with Iran. Either way with the USA non conventional success it would have come anyways.