Is Exxon Right This Time?
I've written the cover story for BusinessWeek, which hit the stands today. The topic is Exxon. The premise of the story is to take a reading of Big Oil by examining the most successful by far of all the companies; if Exxon has got problems, the rest definitely do. The story points out that Exxon retains superlative cash flow, but has numerous weaknesses built in to its system.
Ultimately, Exxon has successfully navigated the real and supposed crises of the last several decades by sticking steadfastly -- some say rigidly -- to much the same highly cautionary formula devised in the 1870s by John D. Rockefeller, the founder of Exxon predecessor Standard Oil.
So where are we today? At the cusp of a fundamental shift in global energy, as many argue? Or, as Exxon asserts in continuing to adhere to its orthodoxy, are we in just another cycle?
Ultimately, Exxon has successfully navigated the real and supposed crises of the last several decades by sticking steadfastly -- some say rigidly -- to much the same highly cautionary formula devised in the 1870s by John D. Rockefeller, the founder of Exxon predecessor Standard Oil.
So where are we today? At the cusp of a fundamental shift in global energy, as many argue? Or, as Exxon asserts in continuing to adhere to its orthodoxy, are we in just another cycle?
Labels: big oil, energy independence, energy policy, Exxon, the oil and the glory
2 Comments:
Posting for O&Ger Dwight Baker:
BOOM, BUST, BUY the principles that John D. Rockefeller laid out long ago still works today and will as long as Exxon maintains some if not all of the control of international politics, but how much further does the BUST need to go before the time will come for the right BUY?
I think the article is somewhat unfair in failing to point out the fact that the stark XOM production decline you describe is attributable very largely to automatic PSA entitlement changes, which reduce the volume taken by foreign companies as the oil price goes up. Not mentioning this makes the situation look worse than it is.
Post a Comment
Links to this post:
Create a Link
<< Home