Oil is abundant and prices high, but steeper costs push Big Oil into a global slump

  • Article by: JONATHAN FAHEY , AP Energy Writer
  • Updated: August 1, 2013 - 6:05 PM

NEW YORK — New troves of oil have been found all over the globe, and oil companies are taking in around $100 for every barrel they produce. But these seemingly prosperous conditions aren't doing much for Big Oil: Profit and production at the world's largest oil companies are slumping badly.

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brotherkennyAug. 1, 13 7:17 PM

The only reason fracked oil is even economical is because the price of oil is high. The technology for fracking has been around since the 70s, but the economics didn't work until now. There was no way to make a profit previously. So obviously too, since the production costs are higher for that oil, the margins are lower. Also, the companies doing the fracking are smaller and not the major oil companies. I guess the majors controlled enough of the government that they never thought there would be any competition. Somehow we should blame this all on the environmentalist, it must be a socialist plot. I know all the prediction were that oil was going to go up in price because of rising costs and more demand and fewer resources, but heck we all know that was just a plot too.

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wplettfanAug. 1, 1310:40 PM

Maybe we the taxpayers need to kick in more to the $4 billion in subsidies that big oil gets each year. I feel bad for them. Maybe we should call the waaaaaaaaaaambulance.

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alexjackAug. 2, 1311:22 AM

It's time for the price of oil to reflect the environmental costs associated with it's extraction and use. The oil companies have been getting off scot free reaping all the profits and letting consumers either pay for clean up or breathe and drink from a polluted environment. Of course, those costs will be pushed back to the consumer but then clean energy can truly be competitive and market forces can work in favor of a clean environment.

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