That is not true. ExxonMobil is expanding the exploration and production of heavy oil on the North Slope. Oil companies are continually expanding. Oil fields naturally deplete and produce less oil each year without expansion. They have to increase production through new wells or additional facilities just to stay even.
.....But XOM has not added to exploration.......
That is not true. ExxonMobil is expanding the exploration and production of heavy oil on the North Slope. Oil companies are continually expanding...........
I'm sorry if my post was misleading. Yes they're spending on capital and exploration, but not in line with their earnings and cash flow increases.
From their 10Q filing of 11/5:
Nine month:
Net Income $25.4 Bil an increase fromm 2004 by $8.5 Bil
Capital Expenditures $9.9 Bil an increase by 1.3 Bil
Exploration expenses $635 Mil vs 2004 $789 mil.
Share buyback $18.5 Bil, up from 2004 by $7.9 Bil
So, while net income is up 50%; capital spending is up 15%, exploration expenses are down; and shareholder buyback has increased by 75%.
Perhaps future expenditures will change this picture, but at this point I don't see any huge increase in re-investment in oil infrastructure.