The new joint-venture formed by Exxon-Mobil (XOM), Chevron (CVX), ConocoPhilips (COP) and Royal Dutch Shell (RDS.A) as a rapid response system to the Gulf of Mexico oil spill is best characterized as too little, too late. The companies have initially committed a measly $1 billion to the force. A fund with a starting point of $20 billion-$30 billion would have been more appropriate and practical. The enormity and complexity of the BP's (BP) Deepwater Horizon oil spill demonstrates how quickly a contain-and-cap operation can shoot over $1 billion. Oil fell 56 cents to $78.74 per barrel in Friday morning trading.
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