What Should Investors Do With Exxon?

The video discusses Exxon Mobil's 30-year track record and the challenges faced by big oil companies like Exxon and Chevron in replacing their oil reserves. It highlights the difficulties in estimating the terminal value of oil and the impact of OPEC's broken cartel on global oil pricing. The discussion emphasizes the free market dynamics currently influencing oil prices.

What is a significant challenge faced by big oil companies like Exxon and Chevron?

• Increasing their production capacity

• Expanding into renewable energy

• Replacing their production with new reserves

• Reducing their operational costs

What is the concept of 'terminal value' in the context of oil?

• The price of oil in the futures market

• The final price of oil before it is sold

• The estimated long-term value of oil reserves

• The cost of extracting oil from reserves

Why is it difficult to predict the future price of oil?

• Because of the varying quality of oil

• Due to the unpredictability of OPEC's actions

• Due to the constant changes in extraction technology

• Because of fluctuating demand

What has caused the OPEC cartel to be described as 'effectively broken'?

• Increased competition from renewable energy

• A lack of new oil discoveries

• A lack of discipline in supply management

• Political disagreements among member countries

How does the current state of the OPEC cartel affect the global oil market?

• It causes a decrease in oil prices

• It results in a free market for oil

• It leads to a more regulated market

• It stabilizes the global oil supply