JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 05/27/11 -- www.stockcall.com/ offers investors comprehensive research on the Major Integrated Oil & Gas industry and has completed analytical research on Exxon Mobil Corp. (NYSE: XOM) and Eni SpA (NYSE: E). Register with us today at www.stockcall.com/ to have free access to these researches.
Crude oil prices climbed back over the $100 a barrel mark on Tuesday and another spike could be on its way. There are few reasons for investors to be cautious about major integrated oil and gas companies though. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the Major Integrated Oil & Gas industry.
www.stockcall.com/ is an online platform where investors doing their due-diligence on the Major Integrated Oil & Gas industry can have easy and free access to our analyst research and opinions on Exxon Mobil Corp. and Eni SpA; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html.
Gas and oil prices will likely continue to fluctuate in the coming months to both the detriment and benefit of companies within the industry. In addition to rapidly changing prices, the US dollar (the standard currency of commodities) has been weak lately further compounding the changes seen in gas and oil pricing. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.
Companies with Libyan exposure like Eni S.P.A could also face difficulties. Eni already reported a year over year quarterly decline in its Libyan production of 129,000 BOE per day. Despite the production decline in Libya, high crude oil prices earlier in the year did drive Eni's revenues up 15.6% over the year prior quarter. Eni SpA research report is available for free by signing up now at www.stockcall.com/E270511.pdf.
Regulatory changes could also be on their way. President Obama recently reiterated his interest in cutting tax incentives for the industry. After companies like Exxon Mobil Corp. posted nearly $11 billion in its first quarter profit, the decision to eliminate tax incentives seemed like it could be hard to argue against. Exxon Mobil Corp. research report is accessible for free by registering today at www.stockcall.com/XOM270511.pdf.
However, most of the tax incentives are in place to protect companies from the risks that are inherent to exploration ventures. Removal of tax incentives would make oil companies less likely to pursue new projects which in turn could lead to less supply and even higher prices. The President may be aggressively pushing for the removal of these incentives, but he will likely encounter a great deal of opposition in the Senate before any drastic changes are made.
Moving forward, if crude oil prices spike again, another series of highly profitable months could be on its way for the major integrated oil and gas industry. However, any combination of price fluctuations, a weak US dollar, declines in Libyan production and regulatory changes could all dent the bottom lines of companies in the industry.
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William T. Knight