{"id":45753,"date":"2019-04-29T13:35:02","date_gmt":"2019-04-29T18:35:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=45753"},"modified":"2019-04-29T13:35:05","modified_gmt":"2019-04-29T18:35:05","slug":"lousy-shale-economics-financial-troubles-continue-at-exxonmobil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=45753","title":{"rendered":"LOUSY SHALE ECONOMICS: Financial Troubles Continue At ExxonMobil"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/srsroccoreport.com\/lousy-shale-economics-financial-troubles-continue-at-exxonmobil\/\">LOUSY SHALE ECONOMICS: Financial Troubles Continue At ExxonMobil<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After reporting lower than expected earnings, ExxonMobil\u2019s stock price sold off on Friday.&nbsp; The company blamed poor performance on reduced production volumes and a weaker oil price.&nbsp; However, the real culprit will turn out to be Exxon\u2019s big move into the Great U.S. Shale Oil Ponzi Scheme.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As I mentioned in my recent article,&nbsp;<a href=\"https:\/\/srsroccoreport.com\/exxonmobils-u-s-oil-gas-financial-train-wreck-producing-shale-is-destroying-its-bottom-line\/\"><em><strong>EXXONMOBIL U.S. OIL &amp; GAS FINANCIAL TRAIN-WRECK: Producing Shale Is Destroying Its Bottom Line<\/strong><\/em><\/a>, the company will continue to spend a great deal of capital with little financial reward.&nbsp; So, it wasn\u2019t a surprise to see Exxon\u2019s Q1 2019 earnings decline by $3.6 billion compared to the previous quarter\u2026 even though U.S. oil production had increased.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While weaker earnings were experienced across all of the company\u2019s sectors, upstream (oil &amp; gas wells), downstream (refining and marketing products) and chemical, the big RED FLAG was in the U.S. oil and gas sector.&nbsp;<strong>&nbsp;According to Exxon\u2019s Q1 2019 Earnings Release, the company invested $2.5 billion in CAPEX (capital expenditures) on its U.S. oil and gas wells, to earn a paltry $96 million in earnings<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dizgpp7sc1t8t.cloudfront.net\/wp-content\/uploads\/2019\/04\/ExxonMobil-Upstream-Earnings-vs-CAPEX-Q1-2019.png\" alt=\"\" class=\"wp-image-20138\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Now, compare the miserable U.S. upstream earnings to Exxon\u2019s International upstream earnings of $2.78 billion on $2.8 billion of capital expenditures.&nbsp; &nbsp;ExxonMobil will likely invest close to $10 billion in CAPEX on just its U.S. upstream sector (spent over $5 billion of CAPEX past two quarters) this year, and if oil prices fall, it will impact their earnings quite negatively.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This next chart shows how much money Exxon is investing in its U.S. oil and gas sector each quarter:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dizgpp7sc1t8t.cloudfront.net\/wp-content\/uploads\/2019\/04\/ExxonMobil-US-Oil-Production-vs-CAPEX-Q1-2018-Q1-2019.png\" alt=\"\" class=\"wp-image-20140\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">We can see that Exxon ramped up capital expenditures in its U.S. oil and gas properties (mostly shale) significantly since the beginning of 2018.\u00a0 Over the past year, the company has spent $8.8 billion to increase production by 77,000 barrels per day.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LOUSY SHALE ECONOMICS: Financial Troubles Continue At ExxonMobil After reporting lower than expected earnings, ExxonMobil\u2019s stock price sold off on Friday.&nbsp; The company blamed poor performance on reduced production volumes and a weaker oil price.&nbsp; However, the real culprit will turn out to be Exxon\u2019s big move into the Great U.S. Shale Oil Ponzi Scheme. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1041,1875,723,12073],"class_list":["post-45753","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-exxonmobil","tag-shale-industry","tag-shale-oil","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=45753"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45753\/revisions"}],"predecessor-version":[{"id":45754,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/45753\/revisions\/45754"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=45753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=45753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=45753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}