LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - May 17, 2019
By: GoldSeek.com

Gold Miners’ Q1’19 Fundamentals
By: Adam Hamilton, CPA, Zeal Research

Three safe-haven reasons to own gold
By: Richard (Rick) Mills, Ahead of the herd

Trump’s China Blunder
By: Peter Schiff, President and CEO Euro Pacific Capital

Is the Trade War a Catalyst for Gold?
By: Jordan Roy-Byrne CMT, MFTA

Bitcoin Mania Is Back! Are You Ready to Rumble?
By: Rick Ackerman, Rick's Picks

Precious Metals Update Video: Gold support around $1,282
By: Ira Epstein

Asian Metals Market Update: May-17-2019
By: Chintan Karnani, Insignia Consultants

GoldSeek Radio Nugget: Louis Navellier
By: Chris Waltzek, GoldSeek Radio

Gold: Ratio Charts Offer the Key to the Bull
By: Rambus

>
 
Search

GoldSeek Web

 
Blood Continues To Flow In The U.S. Oil Industry As Precious Metals Rally


 -- Published: Sunday, 31 July 2016 | Print  | Disqus 

By Steve St. Angelo, SRSrocco Report

The top three U.S. oil companies released their financials today and the results were completely horrible.  Exxon Mobil was the only one of the three that still made a profit for the first half of the year, however it was down a stunning 62% compared to the same period last year.

Unfortunately, Chevron and ConocoPhillips results were much worse as they suffered a combined net income loss of $4.7 billion for the first half of 2016.   We must remember, these are the major U.S. oil companies that are supposed to be highly profitable.  I hear this all the time from politicians and folks who believe in lousy conspiracies.

If we take a look at the chart below, we can see how much blood is flowing from the top three U.S. oil companies:

Top-3-U.S.-Oil-Companies-Net-Income-NEW

As I stated, Exxon Mobil still was able to show a profit of $3.5 billion, but this was down 62% compared to the $9.1 billion net income during the same period last year.  Chevron actually enjoyed a positive net income of $3.1 billion during the first half of 2015, however this became a net loss of $2.2 billion 1H 2016.  And then we have ConocoPhillips that suffered a $2.5 billion loss 1H 2016 versus a small profit of $93 million during the same period last year.

If we combine the total for these three major U.S. oil companies, they reported a $12.3 billion profit in the first half of 2015 compared to a net loss of $1.2 billion in the first six months this year.

So, individuals who don’t believe in peak oil because the U.S. oil companies are making big profits, need to wake up and look at the data.  The low oil price and the rising debt levels on these oil companies balance sheets are destroying them.  While Exxon Mobil is still making a profit, it is nothing compared the BIG MONEY it was making a few years ago.

I don’t have a chart for this, but look at these figures:

Top 3 U.S. Oil Companies Net Income (1H 2011 vs 1H 2016)

Exxon Mobil: (1H 2011) = $21.8 billion

Exxon Mobil: (1H 2016) = $3.5 billion

Chevron (1H 2011) = $13.9 billion

Chevron (1H 2016) = –$2.2 billion

ConocoPhillips (1H 2011) = $4.7 billion

ConocoPhillips (1H 2016) = $-2.5 billion

What a difference in five years… aye?  These top three U.S. oil companies made a combined net income profit of $40.4 billion during the first half of 2011 versus a net loss of $1.2 billion 1H 2016.  And… I believe the situation will become a lot worse for these companies going forward.

The Precious Metal Prices Continue To Rally

Kitco-Metals-Prices-072916-NEW

As the oil price continues to fall, gutting the entire U.S. oil industry, the precious metals continue to rally.  Today, the price of gold is up $12.40 to $1,347, while silver is higher by $0.11 to $20.23.

This is a very interesting disconnect as U.S. economic indicators point to a contraction on top of deflating energy prices.  Some analysts have been forecasting a huge deflation with falling gold and silver prices.  I don’t think this will happen.  Gold and silver may have different plans, especially if we see more problems coming out of the European banks.

Investors need to prepare themselves for the coming collapse of most paper assets and real estate values.  I don’t see the oil price recovering anytime soon, so this will put severe pressure on the U.S. oil industry.  Without rising energy production, ECONOMIC ACTIVITY GOES SOUTH… in a BIG WAY.

The idea that investors should only purchase 5-10% of their assets in gold or silver will become a HUGE MISTAKE going forward. 

Check back for new articles and updates at the SRSrocco Report.


| Digg This Article
 -- Published: Sunday, 31 July 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.