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OIL
Oil company Estimated net incomeFinancial Times profit predictions
BP $4.8 billion Up 85 percent
Chevron $3.7 billion Roughly doubled
Conoco $2.0 billion More than doubled
Exxon $6.8 billion Net income roughly doubled
Shell $4.0 billion Up about 30 percent
2011 Projected 1st Quarter Net Profits for Major Oil Companies
What is net profit? Net Profit is total revenue minus total expenses, in other words, after all the bill are paid (salaries, equipment, facilities, research and development, etc…)
Price per barrel 3/1/2011
Energy demand will increase 58% over
the next 25 years.Trillions will be spent to secure the
world'senergy supply... and all sources are on
the table.Oil, Natural Gas, Solar, Wind. Fortunes
stand to be made.
What's Waiting for Us in 2011
• The return of $100 oil• China's energy scramble reaches new
heights • Exxon Profit Rises 53 Percent• Soaring Oil Profits, Declining Discoveries,
and Danger Signs
Honestly, how come oil prices are jumping
• The honest answer is the reason oil prices keep setting records is that demand for fossil fuels is growing faster than the world’s oil producers can find new sources to satisfy that demand and replace the oilfields that are used up.
• Prices of commodities in limited supply are set by the market, not the producer.
• Congress has no more control over oil prices that you do.
Why are Oil Prices so High?
• "One of the things I think is very important to realize is that the growth in the world oil consumption is not that strong”
• "...There is substantial evidence that the large amount of speculation in the current market has significantly increased [oil] prices."
• http://video.foxbusiness.com/v/4550150/oil-spike-all-hype/?playlist_id=87185
What is OPEC
• An organization consisting of the world's major oil-exporting nations, OPEC was founded in 1960 to coordinate the petroleum policies of its members and to provide member states with technical and economic aid.
• OPEC is a cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
U.S. Oil Reserves
