Positive Signs in the Oil Patch

This column was originally published on RealMoney on Feb. 2 at 7:24 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

We found out yesterday what happens when earnings peak in the oil patch, but the numbers are great anyway: The stocks go up.

When you get a magnificent quarter, as you did yesterday with Exxon (XOM Quote), but the earnings are down 4%, you would expect the growth hounds on the Street would run from it. Nope, they bought it.

They did the same to Royal Dutch (RDSA Quote), which, at last, is out of the doghouse because of its high replacement rate, although it is using tar sands in its calculations. ...