Profits moving into exploration ?

[Shannow]

Although some of the record profits realised recently are, in fact on reduced volume, plus the fact that exploration is a deductible rather than a taxable.

Is increasing profitability in exploration (two and threefold in quite a few years) an indicator that things are becoming tight ?

Corporate welfare when the taxpayer pays for exploration, rather than at the pump ?

 

[bruno]

Exploration is a gamble . It is a sensible use of profits though .

 

[eljefino]

I don't exactly follow, exploration should be a business expense and biased against revenue before "profit" is figured in the first place.

 

[Shannow]

Trying to find a link I guess.

Read that exploration costs are up 4 or 5 times...greatly more than the true costs have increased.

Down here, at least, exploration is a more than 100% tax deduction (125 or 150%).

 

[another Todd]

I believe much of todays exploration is funded by the US taxpayers. Record profits go in the pocket.

 

[bruno]

Whose pocket ? The shareholders ?

 

[Steve S]

When the corporations own the politicians what can be expected???

 

[Fuelman]

There has been several financial news stories over the last couple of years about a large percentage of the oil companies record profits are being used to buy back outstanding stock. This is going on industry wide.

 

[BigOil]

Really?.."I believe much of todays exploration is funded by the US taxpayers..." The company I work for puts virtually all net income back into capital investments. It's a no-win business for opinion though, the industry drove huge costs out of barrel of finished oil...these savings reduced increases in costs in the late 80's and 90's. They made very modest profits at the time ...earning 0 to maybe 15% on shareholders money. It's better now, true...but I suppose that governments and foreign firms will figure out how to meet our energy needs in the near term (oil is not going away anytime soon). Can't see why a USA company making money and re-investing is a bad thing? Profit motivates results.

 

[wileyE]

Could me driving around town looking for the lowest gas prices be deductible as "exploration"?

 

[oilyriser]

Some kinds of exploration seem to require drilling through living matter to get to the oil.