Oil Falls, Company’s Could Loose Big
From Reuters: Big
Oil profits in danger as price of crude slides
“NEW YORK (Reuters) - Energy stocks have taken a beating as crude oil prices plummeted
this week, but oil producers will really feel the pain on the bottom line, threatening
to wipe out billions of dollars in profits.If this week’s $5.50 oil price drop is sustained over the year, Exxon Mobil Corp.
would lose nearly $3 billion in profit — about $540 million for every dollar off
the price of oil per barrel, analysts said.Chevron Corp. and ConocoPhillips , the second- and third-largest U.S. oil companies,
would lose about $330 million and $200 million, respectively, for every dollar off
the price of oil per barrel per year.”
I doubt we will be hearing any concern from the looney’s about this.
If the general public only had a smidgen of knowledge of economics, they would probably
understand the problem here.