Where’s All That Oil Money Going?

NEW YORK (CNN/Money) – With American motorists shelling out over $2 a gallon for gas, oil companies have managed to pile cash; The question is, what are they going to do with it?

Give it back to shareholders? Buy each other out? How about more oil production? More likely it will be a combination.

As oil continues to trade in the $50 a barrel range, profits for oil majors have skyrocketed.

Fadel Gheit, an energy analyst at Oppenheimer & Co., a New York brokerage, says that oil companies have record amounts of cash sitting on their balance sheets.

Where’s the reinvestment?

CNN