Watch out investors oil is becoming just another commodity Archives

daniel February 16, 2018 Can Chevron Survive?, cheaper robotic drilling equipment, Chevron (NYSE: CVX), How Much Cash Does Chevron Have?, How OPEC is Driving US Oil Production and creating a new Oil Glut, robot roughnecks, So far Chevron has managed to thrive in the oil glut era, the oil glut era, the Oil Gut, Watch out investors oil is becoming just another commodity, Will the Oil Gut Kill Chevron and other oil companies?

Will the Oil Gut Kill Chevron and other oil companies?

The danger to companies like Chevron is that oil is slowly becoming a bulk commodity with a low value. Companies will still make money in the oil business but profits will be far lower because prices will be low.

Instead, oil producers like Chevron will be more like miners such as Rio Tinto Plc (NYSE: RIO) with lower share prices and less cash. RIO was trading at $57.82 a share on 14 February 2018 while CVX was trading at $112.14 a share.