(XOM) Oil Companies Still Making Piles of Money

July 30th, 2009

by The Investment U Research Team

It’s not without some sort of satisfaction that many consumers react to the news that earning reports from oil companies have been dismal. After all, these companies have been making money off us hand over fist for quite some time.

Of course that doesn’t mean that they aren’t still making money.

Exxon Mobil (NYSE: XOM) reported that profit dropped 66% last quarter. Although it still made $3.95 billion, it’s just not making money hand over fist like last year.

In a eerily similar report, Royal Dutch Shell ADR (NYSE: RDSA) said that it’s profit dropped 67% to $3.82 billion. ConocoPhillips (NYSE: COP) fared even worse, with profits plummeting 76% to $1.3 billion.

Hard times indeed in the petroleum industry.

This all comes on the heels of a volatile market in oil prices, regulators considering limits on oil speculation, and oil stockpiles fluctuating.

The real reason oil supplies have been moving so much is the contango situation that caused millions of barrels of oil to be stored offshore in tankers. As the capacity has opened up some of this oil is migrating ashore – but not much.

This is skewing the supply numbers up and down depending upon the pricing and motivations of the sellers.

Oil is opening up at almost $67 a barrel today, and it’s easy to see how supply and demand pressures will keep that fluctuating for a good deal into the future.

View original at: Investment Advice and Investment Research with a Contrarian Point of View

More on this topic (What's this?)
Oil Companies Still Making Piles of Money (Investment U, 7/30/09)
Oil Companies Still Making Piles of Money (Contrarian Profits, 7/31/09)
The Next Biofuel: Pond Scum? (Money Morning, 7/14/09)
Greenpeace Intercepts Rogue Oil Industry Correspondence (The Value at Risk, 8/14/09)
Read more on Exxon Mobil, Oil & Gas, Oil at Wikinvest

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