TOTAL S.A. (ADR) (TOT), BP plc (ADR) (BP): What You Need to Know About Big Oil’s Recent Quarter

Patience for big priojects

Despite the less than attractive production numbers this past quarter, there are several signs that suggest that big oil is about to get a big boost in production. The Kashagan — of which Royal Dutch Shell plc (ADR) (NYSE:RDS.A), Exxon Mobil Corporation (NYSE:XOM), and TOTAL S.A. (ADR) (NYSE:TOT) each have an 18% stake — is one of the most anticipated projects to come on line in many years. The super giant oil field holds an estimated 38 billion barrels of oil in place and could be a very long life asset for the companies involved. In fact, almost all of these major projects will affect multiple partners. Gorgon is split between Chevron Corporation (NYSE:CVX) (47.3%), Exxon (25%), and Shell (25%), and the Mars B offshore project is 71.2% owned by Shell. So, as much as these companies may be competing against each other, their prospects are all tied to the success of the others.

What a Fool believes
Investing in big oil takes a very long-term view, because quarters like this past one will happen from time to time. While these kinds of quarters may not be deal breakers, it certainly does expose some of the weaknesses of these companies that are worth taking a look at. Long term, all of these companies have major projects coming on line that should significantly affect revenue and earnings, so be sure to check up on how these companies are doing after start-up.

The article What You Need to Know About Big Oil’s Recent Quarter originally appeared on Fool.com.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool recommends Chevron and Total SA. (ADR). 

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