Bloomberg this morning ; Standard & Poors have stripped EXXON MOBIL of its gold plated credit rating it has held since the depression in 1930 . Now only Microsoft and Johnson & Johnson have the prestigious rating . EXON MOBIL has doubled its debt over the past year , and because funds for E & D have all but evaporated only 67% of oil reserves have been replaced . The important message here is that they are all in the same boat . No new oil is being replaced !! All the Worlds oil producers have been pumping madly out of their tired old existing wells which are getting more and more expensive to operate , and failing to explore and develop new oil fields ' excluding expensive shale and oil sands , which cant compete ' Which beings in line my theory , that once oil rebalances , prices will rise alarmingly , as new money will have to be found to take up the grossly depleted oil fields and develop new oil . The estimates from OPEC were an additional $ 1,000,000,000,000 US every year for the next ten years , just to keep up !!!! And how will they fund this Trillion dollar a year in extra E & D . Higher oil prices and higher prices at the pump . One follows the other . How will this effect MRM ?? One would think an explosion of E & D activity would be very favourable indeed...... Cheers and good luck Mermaids...
MRM Price at posting:
44.0¢ Sentiment: Hold Disclosure: Held
