Tag Archives: mobil

Business/Economics, International, Technology, U.S.

Oil & Gas Prices: Exxon Mobil will cut oil production, blames high fuel prices on speculators, blames Republican controlled Congress for too much regulation

Exxon Mobil, the world’s largest corporate producer of oil and natural gas, announced they will cut oil/gas production for 2012 by at least 3%.

This comes as companies like Exxon have said that they have to increase spending of their record setting profits on developing access to new sources of petroleum.

Exxon has already spent tens of billions in the past year, and they’re planning nine projects for 2013, and 12 projects for 2014.

However, it could be that the real reason Exxon Mobil is reducing production is that Iraq is challenging their contracts with the Kurdistan Regional Government.  Iraqi officials say Exxon’s contracts with Iraqi Kurdistan are illegal.  Iraq is taking legal action to kick Exxon out of the huge oil fields in northern Iraq!

Even so, Exxon Mobil’s CEO, Rex Tillerson, said fuel prices are not up because of lack of supply: “On pure supply-demand fundamentals, the markets are well supplied.”

So why are prices going up? Tillerson says “Gasoline prices are up because crude oil is up.”  Really? Duh! But wait, there’s more.  Tillerson also indicated oil prices will continue to go up because of supply issues: “People who are trying to secure those supplies are going to pay what it takes…today with the view that they might not be able to get them later.”

Basically he’s saying that despite plenty of oil already in the supply system, the speculators are driving up prices because they are afraid the oil supply will suddenly stop.

Tillerson explained that it’s not just wars that could stop the oil/gas supply, but over regulation by the Republican controlled U.S. Congress: “Our regulatory process has become so complicated by so many duplicative agencies, by so many mandates from Congress, that now it has become a way to stop things from happening. There are a thousand ways you can be told ‘no’ in this country.”

Oh, and by the way, all those billions of dollars that Exxon Mobil is going to be spending ($185 billion estimated) on those dozen or more projects in the next few years, is expected to increase their production by only 4% to 8% by 2016!!!

 

Business/Economics, International, Technology, U.S.

Black Horse & What Economic Recovery? Exxon Mobil to quit Japan

…there before me was a black horse! Its rider was holding a pair of scales in his hand. Then I heard what sounded like a voice among the four living creatures, saying, “A quart of wheat for a day’s wages, and three quarts of barley for a day’s wages, and do not damage the oil and the wine!”

Exxon Mobil announced that they will give up their controlling stake in Japan’s Tonen General, a major Japanese refinery.

This comes as Japan has 94% of it’s nuclear power plants shut down, and the government planning on increasing power generation through petroleum products.

Officially Exxon Mobil says demand for petroleum is down in Japan, because of fuel efficient vehicles.

Could the real reason be that Japan’s economy is in shambles, with record unemployment levels in 2011, so that even if demand for oil products went up no one is able to pay for them?

Business/Economics, Idaho, International

Canadian oil company equipment stuck in Idaho, Montana suing

Canadian Imperial Oil (a subsidiary Exxon Mobil Corp) has massive equipment, called modules, stuck in Lewiston, Idaho.  They need to get it to their Kearl oil sands project in northern Alberta, Canada.

The problem is their size.  Idaho Transportation Department has yet to approve transportation of the equipment through Idaho, one of the problems is that the modules won’t fit under any overpasses in Idaho.  Oil company officials say they will have to cut them in half.

In Montana, there are lawsuits to stop the transportation through its territory. Montana officials say the size of the Imperial Oil equipment will require burial of overhead power lines, upgrading existing roads and building new turnouts (who’s gonna pay for that?).  Montana environmentalists say the company needs to do an environmental impact assessment.

Imperial Oil is complaining that their construction schedule is being compromised.  Maybe they should have worked this out before hand?

Imperial Oil does not have a good business track record, or a good safety track record.  Recently they’ve apologized for the release of a mile-long plume of sulfur dioxide, in Ontario, Canada.

Business/Economics, U.S.

Exxon Mobil lies about paying taxes, includes taxes YOU pay

“We are one of the largest taxpayers in the United States.”- Alan Jeffers, Exxon Mobil spokesman

Exxon announced they paid $3.1 billion in taxes in the United States, but that’s more than the $2.6 billion in profit they made.  How can they pay more in taxes than what they make?  They lie.  Exxon includes the taxes paid at the pump by YOU, and the taxes paid by their own employees.

The Exxon announcement came after criticism about how little taxes they actually pay.  So to pump up their claim of paying taxes they included the taxes that consumers pay when they fill up their vehicles at Exxon/Mobil gas stations.  Does the oil industry think people are that dumb?

On top of that Exxon Mobil used their own employee’s payroll taxes!

So Exxon claims to be one of the largest taxpayers in the country, but Bob McIntyre, at Citizens for Tax Justice, points out “They are counting taxes they don’t pay. Payroll taxes are on the workers, sales taxes are on the consumers.”