Gradual Liquidation

This phrase was used by a New York Times writer this weekend on Exxon. In citing the facts of Exxon and most of its global peers over the past year that the current production of oil is not being replaced in new findings with the billions being spent on drilling. A decade ago, Exxon invested more than $2 for every dollar it distributed to shareholders. Last year the figure was 70 cents. In 2005, Exxon reduced the number of shares outstanding (by buying common shares in the open market)by 4 percent. Gradual liquidation is an excellent strategy for a company in a declining industry with few investment opportunities. "Let us hope this is not the case here."

All the media is focused on is the current high storage numbers and warm weather. The bigger story is the replacement reserves are not being discovered!! Thus the rising value of existing or remaining crude supplies!