BizWeek on Big Oil

Wednesday, May 10, 2006 | 05:58 AM

0620covdc Interesting cover story in Business Week on "Why You Should Worry About Big Oil."

Before anyone leaps to the wrong contrarian conclusion, note that major business news weekly cover stories are less effective contrary indicators (although they have all had their day in the sun).

Rather, it is the mainstream press (more than  the financial media) that tends to catch the crescendoing top as a cover story.

For example, this Business Week story isn't a breathless recap on why Oil is so expensive ($75 and going to $200!); Instead, it discusses why the large Oil Cos are vulnerable --despite the huge cash hoards and record profits.

Graphic courtesy of BusinessWeek

Recall our prior discussions on Magazine Cover Indicators:

For single companies, it rarely works. See all of these Apple cover stories as an example.

On the other hand, it often works with politics; See the Howard Dean covers, as well as the shrill blonde harpy cover. Broader issues like "Tech is Back!" at Forbes was also a good tell. And of course, the grand daddy of magazine covers was Business Week "The Death of Equities".   



(There's more after the jump.)


Why You Should Worry About Big Oil
Business Week, MAY 15, 2006

Wednesday, May 10, 2006 | 05:58 AM | Permalink | Comments (14) | TrackBack (1) add to | digg digg this! | technorati add to technorati | email email this post



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» Why You Should Worry About Big Oil from The Agonist
Why You Should Worry About Big Oil Businessweek, May 15 (Via the Big Picture) By Stanley Reed, with Christopher Palmeri in Los Angeles, Peter Coy and Rose Brady in New York, and Mark Morrison in Austin, Tex. You'd think the Apr. 26 oil summit in Qatar wou [Read More]

Tracked on May 10, 2006 8:16:01 AM


"BP uses a $20 per barrel oil price to “test” its spending projects—i.e. to decide whether to go ahead with drilling for oil.When reminded that oil currently sells for about three-times that figure, the BP investor relations person vigorously defended this $20 “test” price, noting that BP sees oil trading in a $20 to $35 a barrel range over the long haul."

as reported at

Posted by: guambat stew | May 10, 2006 7:18:57 AM

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