oil. oil company profits oil companyestimated net income financial times profit predictions bp$4.8...

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

OPEC

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