Naturally Interesting

Business Week examines why Exxon isn’t projecting increased oil production.

“It really goes back to what is an acceptable investment return for us,” Tillerson said. In other words, producing incremental barrels just to ease prices for consumers is not part of the company’s calculations. Last year, ExxonMobil led the industry with a return on capital of 32%.

It is not all malfeasance on Exxon’s part though.

Exxon plans on bringing new fields online in Russia, the Middle East, and Africa over the next four years but they won’t be enough to generate growth beyond what the company is losing due to the maturation of its fields in the North Sea and Alaska, the nationalization of its fields in Venezuela, and volumes lost due to those production sharing agreements with other countries. “It has always been a challenge to grow volumes when you are working off of a base as large as ours,” Tillerson told the analysts