Exxon Mobil Corp.’s third quarter earnings rose 55% due to stronger refining margins, higher commodity prices and a spike in production. Output increased by 0.8 million barrels because of the addition of production from natural-gas producer XTO Energy Inc. and liquefied natural gas investments in Qatar. Exxon also increased its natural-gas production to 12.2 billion cubic feet per day. Exxon’s current raise in revenue mirrors a rebound seen at other major oil companies such as Royal Dutch Shell and ConocoPhillips because of a larger demand for refined products and chemicals.
Even though Exxon Mobile’s new gains seem to be a product of the purchase of XTO some analysts are concerned because natural-gas prices are low and it was more of an acquisition that would be seen profitable down the road. But others say and Exxon Mobile seems to agree that if they are going to invest in natural gas, they might as well go all the way, seeing as they are already seeing results.
-Nicole Lombardo
(Wall Street Journal, ISABEL ORDóñEZ)
http://online.wsj.com/article/SB10001424052702303362404575579980800711598.html?mod=WSJ_Energy_leftHeadlines
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ReplyDeleteI completely agree that Exxon Mobile should continue to invest in natural gas if they are profiting from this new acquistion. Especially if they believe there is still a good chance for continuing profit in the long run. However, I wonder why gas companies have recently had an increase in revenue. What is behind this new increase in demand? Lately, demand for oil has been low but something must have caused this sudden change, especially if many companies are experiencing it. For example, a stronger need for heat as fall/winter temperatures settle in. Is this increase in demand something that is here to stay? Or will we once again see a decrease?
ReplyDelete-Ashley Luddy