Marathon Oil has said it will split into 2 companies. The plan is to split off the oil exploration and producing arm and the marketing and refining arm. They claim this move will make them more FLEXIBLE.
It appears the earned only $2.53 billion, in the third quarter last year. This is bad because it is only about 1/6 of the earnings made by marketing and refining.
I could be wrong because in the report there are many conflicting figures.
The way I translate this move is thus.
By splitting, the exploration and producing, sectors will be able to charge the refining and marketing more money. Marketing and refining will have to up their price at the pump. Translation: We pay more at the pump. Marathon exploration and producing earns more money. Our paying more money at the pump “PUMPS” up the income for the marketing and refining arm.
A WIN-WIN. For Marathon. A LOSE-LOSE, for us, the consumers. I’m not saying Marathon is the only company doing this. Marathon is merely the example I selected.
That Is How I See It.