We're Producing The Wrong Kind Of Oil -- Bloomberg -- February 1, 2019

XOM: profits tops estimates. Nothing but good news for ExxonMobil today. Earlier it was reported that Rystad Energy named ExxonMobil the oil, gas explorer of 2018. Back to its earnings:

• excluding the impacts of tax reform, revenues from to $6.4 billion from $3.73 billion a year ago
• production: 4 million bopd
• the Permian: up 90% over one year ago (considering its production there was minimal, this was not a tough metric to beat)
• EPS: $1.41 vs $1.08 forecast

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Oil: And, yes, we  have a nominee for the 2019 Geico Rock Award: Javier Blas has just noticed that "we" are producing the wrong kind of oil. We've been talking about that for years. That's what the Keystone XL was all about.

Over at Bloomberg:

The shale boom has created a world awash with crude, putting a lid on prices and markedly reducing U.S. dependence on imported energy. But there’s a growing problem: America is producing the wrong kind of oil.

Texas and other shale-rich states are spewing a gusher of high-quality crude -- light-sweet in the industry parlance -- feeding a growing glut that’s bending the global oil industry out of shape.

Refiners who invested billions to turn a profit from processing cheap low-quality crude are paying unheard of premiums to find the heavy-sour grades they need. The mismatch is better news for OPEC producers like Iraq and Saudi Arabia, who don’t produce much light-sweet, but pump plenty of the dirtier stuff.

The crisis is Venezuela, together with OPEC output cuts, will exacerbate the mismatch. The South American producer exports some of the world’s heaviest oil and Trump administration sanctions announced this week will make processing and exporting crude far more difficult. American refiners are scrambling for alternative supplies at very short notice.

I used to be concerned about this. No longer.

Chevron has made the first move.

WTI: By the way, WTI solidly above $54 now. Nice to see.

Market: strong again today.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here.

Christmas Eve stock market low, a generational bottom? Link here.

American Girl and Tupperware: falling by the wayside.