XOM: Rising costs of oil development increases risk for oil stocks, investors run

Rising costs of oil development increases risk for oil stocks, investors run

When Exxon announced that it would abandon construction of an ultra-clean fuel processing plant in Qatar due to rising steel and energy costs, it set off a landslide of concerns about the future of US oil companies (see peak oil). Despite the promise of high oil prices, the increasing difficulty and expense of oil extraction is threatening companies like Exxon. Skittish shareholders begin a mass exodus towards lower-risk stocks.

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