The main point of the article is that while oil companies are reporting large earnings these weeks, by some measures the big companies are shrinking. Companies are having "trouble delivering on promises to raise production growth and find enough new sources of crude to replace what they are pumping out of the ground." Further, Shell, who was forced to shut down some of its Nigerian production, is expected to report a decline in output. "Between 2004 and 2006, only ExxonMobil has managed a better than 100% replacement rate on its own."
Saturday, February 2, 2008
This is an article I found in the Wall Street Journal. As a petroleum engineer, I often feel the need to shrink against the wall when profits are announced, and I always look for tomatoes when people ask me what my major is. Even so, this is an interesting article, especially after the lecture on Thursday and the discussion on peak oil. Click for the original article, "Big oil's not-so-big growth plans -- with new reserves harder to snag, Western firms could opt for smaller role."