Exxon Mobil Corporation (XOM): Among Oil Majors, Earnings Highlight Worrying Trend

For instance, ConocoPhillips (NYSE:COP), another massive U.S. oil company, saw production rise by just 1.2% in the first quarter. And for the full year 2013, Conoco’s total production is expected to decline slightly to an average of between 1.485 million and 1.52 million barrels of oil equivalent per day, down from last year’s average of 1.527 barrels of oil equivalent per day.

Similarly, French oil giant TOTAL S.A. (ADR) (NYSE:TOT) reported a 2% decline in production for the first quarter, which, along with falling crude prices, led to a 7% drop in its first-quarter profits compared with the same quarter a year ago.

Going forward, I expect the trend of stagnant or declining production to continue for the foreseeable future. In my opinion, the reasons are structural: The marginal barrel of oil has become much more costly to extract, and the industry will continue to have to spend more and more money to yield additional oil output.

The article Exxon’s Earnings Highlight Worrying Trend Among Oil Majors originally appeared on Fool.com.

Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Total and owns shares of Denbury Resources.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.