The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Trefis) -- Crude oil is arguably the most important commodity in the world today. All eyes are on crude oil prices and oil's dynamics because no country can satisfy its domestic oil demand independently and because countries rely heavily on oil for industrial and retail uses.
According to the International Energy Agency, at present price levels, the world's oil import bill could reach as high as $2 trillion in 2012, which would be near 3.3% of global GDP of almost $60 trillion. Let's look at how inflated oil prices can impact some of the oil-and-gas and energy companies like Chesapeake Energy (CHK), Exxon Mobil (XOM), Baker Hughes (BHI) and Halliburton (HAL).
Oil and Gas Production CompaniesFor oil and gas companies like Exxon Mobil, this environment creates opportunities to ramp up the production and try to satisfy the domestic U.S. demand and grow exports. We believe that the average oil prices and production volumes will be impacted. Below is the realized sales price for oil and natural gas liquids for Exxon which you can modify to see the impact on its estimated fair value.
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