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Big Oil’s secret impoverishment

Posted February 7, 2008

"A barrel of oil is trading around $90 and not showing any signs of falling back to $50 or $60 anytime soon. Profits are up. And all should be well and good in oil country. That rationale couldn’t be more wrong." — Andrew Mickey

by Andrew Mickey

Baltimore – (TFN ):  The headlines seem to be rolling in nonstop for Big Oil: “Chevron Posts Record $17 Billion Profit. BP Profit Up 52%, Record $4.4 Billion Quarter.” And the giant among giants, “Exxon Mobil Reported All-Time Record $39.5 Billion Profit.”

We’ve all seen these headlines before and, sad to say, many investors bought into the hype. Both Chevron and Exxon Mobil shares have climbed more than 150% in the past five years. BP, despite constant problems with its pipelines and international operations, has scored a 50% gain in the past five years.

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Andrew Mickey is a regular contributor to Taipan Daily, your FREE resource for late-breaking investment opportunities to help you beat Wall Street to the profits.

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On the surface, it seems like a pretty safe bet, right? Big equals safe. With Big Oil sporting a total market value of more than $2 trillion, how could you go wrong? A barrel of oil is trading around $90 and not showing any signs of falling back to $50 or $60 anytime soon. Profits are up. And all should be well and good in oil country.

That rationale couldn’t be more wrong. Read on to learn why Big Oil isn't making the big bucks you thought they were.

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Posted by Andrew Mickey · Filed Under Oil and Energy 

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