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Are they counted the days of the oil companies?

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While still growing investment and persistent high oil prices, recent indices and analysis of the oil market demonstrate that extraction and profits fall considerably. The big oil companies ExxonMobil, Chevron, Royal Dutch Shell, BP and Total have confirmed that in the second quarter of 2013, profits fell compared with the same period of the previous year. Despite the significant increase in capital expenditures, shown a decrease in the production of oil and gas in all companies, indicates the Russian newspaper 'Védomosti'. Leading companies "have difficulties to increase the volume of production, despite the high level of oil prices," says Dan Pickering, co-president of investment bank Tudor Pickering Holt. "The independent companies grow annually by 30%, while large companies are forced to fight to maintain the current level," he added. All this affects the market capitalization of the companies. Since the beginning of this year, the growth rate of the total cost of the five largest oil companies stood at 15 percentage points lower than the growth rate of the S&P 500 (Standard & Poor's 500 Index, one of the indices major U.S.). In opinion of experts, each company has its reasons for the bad results of the second quarter of 2013. Shell, Eni and Total were affected by the theft of oil and the sabotage of oil pipelines in Nigeria. BP suffered from increased taxes and unfavorable currency rates. Exxon, in turn, was affected by the reduction in refining margins, while Chevron increased costs of repair of refineries in the United States. But the companies have a common problem. In general, investments in the oil sector have grown, but sometimes the cash flows from operations is not enough to fund both investment and the payment of dividends. "The balance sheets of many companies in the oil sector are improving, but the budgets of major companies are scarce," said Pickering. A similar situation occurred in 1999 and at the beginning of 2009, when oil prices fell sharply. But this time, the prices are still high and the deficit is not associated with a decrease in income, but with the growth of investments. Meanwhile, more optimistic experts are saying that in the coming years will grow the extraction rate of the oil majors. "Now it invests more than before, and that should bear fruit in the form of production growth in the future," said Norman Valentine, an analyst at Wood Mackenzie company. Wood Mackenzie estimates that the rate of growth of the production of large enterprises by the year 2020 may be 3% per year on average. [caption id="" align="alignnone" width="630"]Petrolera RIA Novosti / Alexei Malgavko[/caption] From Actualidad.rt.com
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