Summary
ExxonMobil earned $4.7 billion in the third quarter of 2009, in line with its peers. Earnings were off 68% from last year. Liquids production were up 2%. The poor results are surprising when the company just reported the start up of three liquefied natural gas (LNG) trains in Qatar's North field. Train number 4 scheduled to go on line by end 2009. Projects will generate 5 billion cubic feet /day and 300,000 bbl/day of high quality liquid. If Qatar can barely move the needle, what can?
Analysis
For all the hype, Iraq is not going to be anyone's big play. Iraq is well-explored and its supergiant fields Kirkuk and Rumaila are in advanced states of depletion. That is the good news. The bad news is civil unrest, political chaos and turmoil are national standards. Like it or not, a place like Iraq (and there are many of them) cannot be ruled like a regular nation. It takes a cold blooded, hard-hearted tyrant like you know who to run the country and even then it does not run very well. The chances of Iraq becoming a major crude oil producer are zero. As for Old Jersey, not to worry. Plenty of opportunity abounds in the Asia Pacific region, even more in West Africa and the nascent shale gas boom in Europe. John D. , from his heavenly seat, drinking honey and singing hymns must be smiling at how well his creation sailed through the worst financial and economic debacle since the 1930s.
