Wednesday, February 16, 2011

Exxon Struggles to Find Oil - WSJ.com | Share on LinkedIn

Oil Companies have to replace BOE equivalents and Natural Gas is a dirt cheap way to do it, or the short term back door, so they thought. Problem is they can't book the "Proven Undeveloped Reserves" under new SEC/Accounting rules, so they are all dropping that off their books. The other problem is natural gas in the ground is not worth much on a NPV basis, and if they produce they drive the market down further. Shale Gas has become the curse, then you add the EPA Tax that is coming. Market is starting to recognize that they are stuck in a death spiral on Natural Gas for a while. " 26 seconds agoExxon Struggles to Find Oil - WSJ.com | Share on LinkedIn

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