Thanks to skyrocketing oil prices, many oil companies again enjoyed record profits in 2007. Chevron Corporation posted a company-best $18.7 billion in profit, while Royal Dutch Shell PLC reported a near-best $31.3 billion. ExxonMobil Corporation, the world’s largest publicly traded oil company, posted a 2007 net income of $40.6 billion, the single largest annual profit in U.S. corporate history.
The long-term future of oil companies may not be so bright, however. ExxonMobil reported a decline in oil and natural gas production in 2007, and many companies are finding it hard to replace their reserves.Not only have the largest oil fields already been developed, most of the promising prospect areas are controlled by state-owned oil companies, which hold 80 percent of the world’s proven oil reserves.
From WorldWatch.Org
The Iraq War was an attempt to reduce that 80 percent significantly.
2 comments:
What a bunch of conspiracy theory crap. Take a look at the info that CNN got a hold of regarding Al Qaeda. That's the reason we went into Iraq. Take a look at China's increase in oil demand over the last ten years. That's why oil is so expensive. If you're going to make a statement, at least have some knowledge of history and current events: a.k.a. what you're talking about. It's crackpot statements like this one that perpetuate the "I know better than everyone else in the world, cuz I found it on the net" garbage that pollutes true deductive and inductive thought. Read some history books and newspapers. Or better yet, take a dollar and go buy yourself a clue.
Wow, another Sound American [H.L.Mencken]
"A sound American is simply one who has put out of his mind all doubts and questionings, and who accepts instantly, and as incontrovertible gospel, the whole body of official doctrine of his day, whatever it may be and no matter how often it may change. The instant he challenges it, no matter how timorously and academically, he ceases by that much to be a loyal and creditable citizen of the republic."
1. Al Qaeda and Iraq had nothing to do with each other.
2. It is true that China's oil demand increased over the last 10 years. But even today, China consumes only 8% of the world's output; the US consumes 24%. That means a 1% increase of demand in the US corresponds to a 3% increase of demand in China. US consumption has also been galloping along and this price increase would have happened - a little bit later only - without any Chinese consumption.
3. The point of article is that the American oil companies have very few reserves under their belts. While they are profitable now, without the ability to get new reserves, their future is dim.
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