Buy Oil?

[strife]

So, I was over my parents talking to my dad and I asked him how his stock was doing because I know he's heavily invested in Exxon(retired after working there ~40 years), and he said it was doing okay, down a little(not sure what time frame he was using), but not too bad. I mentioned to him that I figured Exxon stock would be down a lot since the price of oil is so low and he brought to my attention something I never really thought about or was even aware of.

Exxon obviously buy oil... but they don't buy it at current market prices. They sign like a 30 year agreement with oil harvesters and pay that rate over the agreement. Since they do that, the oil price going up or down, doesn't really have much of an impact on their stock. So Oil may be $100 a barrel, but Exxon may only be paying $30 for it(no idea actual cost).

He also said that Exxon, buys the shit oil, so that price they advertise being the price of oil a barrel, isn't what Exxon uses. They use the trash oil and make gas out of it, and all of the trash it takes out of the oil, uses that for other stuff. Pretty interesting. He also mentioned that the good stuff(that is mentioned when they give the price of oil), Exxon isn't really set up to process.