NEW YORK — A big shift is happening in Big Oil: An American giant now ranks behind a Chinese upstart. Exxon Mobil is no longer the world’s biggest publicly traded producer of oil. For the first time, that distinction belongs to a 13-year-old Chinese company called PetroChina.
Recently I told you about a new technology sweeping America’s shale fields.
It’s the next game changer – in a long line of game-changers – that will help boost U.S. oil for decades.
While mainstream analysts and folks on Main Street overlook these game changers and the sheer size of American energy, you and I will have a font row seat to some once in a lifetime profit opportunities.
By Josh Young:It has not been a good time to be invested in major oil and gas companies. Across the majors, production, reserve replacement and earnings have disappointed. (A continuation of a trend discussed in this prior article).
Oil production from North American shale fields will outpace every member of OPEC except Saudi Arabia within two years, according to Exxon Mobil Corp., the world’s biggest energy company by market value.
Globally, crude output from shale and similar rock formations that require intensive drilling techniques will increase 11-fold by the end of 2040, led by explorers in the U.S., Canada and Russia, Exxon said today in its annual long- term forecast for global energy.
North America's oil and gas production boom will allow the continent to become a net energy exporter by 2025, according to the U.S. edition of Exxon's annual forecast. But this assumes expanded production in Canada's controversial oil sands. Many argue that their development environmentally hazardous.
Barely five years ago, when Canadian pipelines could do no wrong and Canada was the darling of the United States’ oil industry, a joke making the rounds at Enbridge Inc.’s expanding Houston base was that Hugo Chavez had been named Employee Of The Year.
“He’s done a lot to help us,” Stephen Letwin, who was in charge of Calgary-based Enbridge’s U.S. operation, said at the time.
Exxon Mobil Corp.’s plans to develop a US$14-billion underwater oil field off Newfoundland’s coast allows the world’s biggest energy company to hedge against discounted crude from Canada’s oil sands.
“The better pricing is definitely an issue,” Brian Youngberg, an analyst at Edward Jones & Co. said by phone from St. Louis on Jan. 4. “While things could change in the time it takes to finish the project, it’s a great way for Exxon to hedge their pricing.”
Exxon Mobil (NYSE:XOM) is starting production at Kizomba Satellites Phase 1 project in Angola this week. The project in offshore Angola is expected to produce a total output of 100,000 bbl/day of crude as the fields are developed further.
Exxon Mobil (NYSE:XOM) is a leading independent oil and gas exploration and production company in the world and competes with other major oil companies like Anadarko (NYSE: APC) BP (NYSE:BP), Chevron (NYSE:CVX