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.
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.
In a dramatic stroke of luck for the Kremlin, this morning there is hardly a person in the world who is happier than Russian president Vladimir Putin because overnight state-run run OAO Rosneft announced it has discovered what may be a treasure trove of black oil, one which could boost Russia's coffers by hundreds of billions if not more, when a vast pool of crude was discovered in the Kara Sea region of the Arctic Ocean, showing the region has the potential to become one of the world’s most important crude-producing areas, arguably bigger than the Gulf Of Mexico.
Exxon Mobil Corp. posted higher-than- expected profit as international sanctions against Russian interests clouded the U.S. oil explorer’s efforts to tap some of the world’s biggest crude reserves.
First-quarter net income was US$9.1-billion, or US$2.10 a share, compared with US$9.5-billion, or US$2.12, a year earlier, the Irving, Texas-based company said in a statement Thursday. Per-share profit exceeded all 20 estimates from analysts in a Bloomberg survey and surpassed the average by 22 cents.