Mixture Of oil and Minerals Bears Fruits
Oil sector attracts and frightens at the same time. It is so nimble that prices for oil and gas products changed from $10 to $35 and back to $25.
The policy of BHP Billiton is clear: it wants to raise its profits and secure its business by mixing petroleum and mining.
BHP Billiton chief executive Brian Gilbertson is planning to spend as much as $4 billion in five years to ensure that growth at the world's biggest mining company will increasingly come from oil and gas.
Another reason of mix business is their wish to widen their market share. Now occupies the one sixth of worldwide supply of iron ore.
After the recent announcement oil and gas is the company's most profitable business in the first half of the year, and almost as profitable as iron ore in the full fiscal year.
In the company's five-year project pipeline, oil and gas represents as much as 40 percent of the $10 billion that may be spent.
The company spent $1 billion on six oil developments last year.
Although shares of the company have declined it still shows best results in comparison with its rivals.
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