FROM RUSSIA, WITH OIL: ExxonMobil and Rosneft, the U.S. and Russian oil giants could invest over $500 billion in a joint venture to explore for and produce oil in the Arctic and the Black Sea. They agreed in August to team up to develop oil and natural gas fields in Russia and North America.
"Big Oil" has to make "Big Investments" in exploration and capital equipment to earn those "Big Profits" We hear a lot from the media and politicians about the "big profits" of "Big Oil" companies like ExxonMobil, which earned $9.45 billion in the first quarter of 2012, and $41 billion last year. But the media never reports about the "big investments" companies like ExxonMobil make, which are almost equal to the profits it earns.
On Monday, at the suburban residence of Russian Prime Minister Vladimir Putin, the chiefexecutives of the US and Russian oil giants, ExxonMobil and Rosneft, signed a deal to collaborate in the development of oil and natural gas fields in Russia and North America. The agreement was officially announced on Wednesday and holds the potential for $500 billion to be invested in the exploration and production of oil in the Arctic and the Black Sea.
MOSCOW (Reuters) - Oil major ExxonMobil and Russia's Rosneft unveiled an offshore exploration partnership on Wednesday that could invest upward of $500 billion in developing Russia's vast energy reserves in the Arctic and Black seas. Under the deal, signed in Moscow on Monday after nearly a year of talks, the partners will seek to develop three fields in the Arctic with recoverable hydrocarbon reserves estimated at 85 billion barrels in oil-equivalent terms. ...
As Barack Obama and Vladimir Putin argue over human rights in Russia and the fate of fugitive U.S. intelligence analyst Edward Snowden, the countries’ biggest oil companies are preparing to drill for giant oil discoveries together in the Arctic Ocean.
The global oil-exploration deal announced by Exxon Mobil and Rosneft is the latest black eye for BP, Rosneft's original partner in the Russian Arctic, and could raise more uncomfortable questions about the company's growth strategy.