October 28, 2016 Read More →

Exxon: Profits Down, Reserves in Question

Bradley Olson and Anne Steele for the Wall Street Journal:

Exxon Mobil Corp., which is under state and federal investigation for how it accounts for the value of its oil and gas wells, said Friday that it may be forced to recognize that as much as 4.6 billion barrels of its reserves are no longer profitable to produce.

The disclosure came as the oil producer reported a 38% decline in quarterly profit.

The vast majority of Exxon’s holdings under scrutiny are in Canada’s oil sands, an area that has been devastated by low prices and environmental concerns as countries around the world seek to reduce high-emitting forms of energy. The company also said it plans to examine its assets to determine whether their value should be written down.

The Exxon release came as the company reported third-quarter earnings of $2.7 billion, a 38% decline from the same period last year, as revenue slid more than expected amid the prolonged swoon in oil prices.

Full article ($): Exxon Warns on Reserves as it Posts Lower Profit

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