Exxon News – 2011
News summaries from
press releases and from unaffiliated news agencies are provided below. The summaries are sorted by month and are further categorized as upstream news, downstream news, and business/finance news.
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• Upstream news:
- Expanding prosperity for a growing world population will drive an increase in energy demand of about 35 percent by 2030 compared to 2005, even with significant efficiency gains, and natural gas will emerge as the second-largest energy source behind oil, Exxon Mobil Corporation (NYSE:XOM) said as it released its new edition of Outlook for Energy: A View to 2030. The growing use of natural gas and other less-carbon intensive energy supplies, combined with greater energy efficiency in nations around the world, will help mitigate environmental impacts of increased energy demand. According to the Outlook, global energy-related carbon dioxide emissions growth will be lower than the projected average rate of growth in energy demand.
- Exxon Mobil Corporation (NYSE:XOM) announced that its subsidiary, Exxon Neftegas Limited, has successfully drilled the world’s longest extended-reach well at the Odoptu field, offshore far east Russia. Exxon Neftegas is the operator of the Sakhalin-1 Project on behalf of an international consortium that includes affiliates of the Russian state company Rosneft RN-Astra and Sakhalinmorneftegas-Shelf; the Japanese corporation SODECO; and the Indian state oil company ONGC Videsh Ltd. The Odoptu OP-11 well reached a total measured depth of 40,502 feet (12,345 meters or 7.67 miles) to set a world record for extended-reach drilling (ERD). The Odoptu OP-11 also set a world record with a horizontal reach of 37,648 feet (11,475 meters or 7.13 miles). Exxon Neftegas completed the record-setting well in only 60 days using ExxonMobil's Fast Drill Process and Integrated Hole Quality technology to maximize performance in every foot of hole drilled at OP-11. Odoptu, one of three Sakhalin-1 Project fields, is situated 5 to 7 miles (8 to 11 kilometers) offshore northeast Sakhalin Island. The ERD process enables onshore drilling beneath the seafloor to the offshore oil and gas reservoirs to successfully operate in a safe and environmentally responsible manner in one of the most challenging sub-arctic environments in the world.
• Downstream news:
• Business/Finance news:
- The ExxonMobil Foundation is contributing $500,000 to Teach For America to recruit and train more than 400 outstanding recent college graduates to teach math and science in public middle schools in low-income communities in Dallas, Houston, South Louisiana and Washington, D.C. The grant benefits Teach For America’s initiative to bring more effective and better qualified math and science teachers to high-need schools in our country’s urban and rural districts. This donation is expected to directly impact more than 27,000 students in inner-city classrooms.
- Big oil companies could unlock big value for shareholders. But to do so they need to slaughter an industry sacred cow: the integration of the exploration and production business with refining and other activities. This model worked for decades but today accords a conglomerate discount to the likes of Exxon Mobil, Shell and BP. Splitting up, as the smaller Marathon is doing, could add tens of billions of dollars to shareholders’ portfolios. As United States members of the group prepare to report earnings starting this week, the world’s big oil companies know they have a problem. Whereas a decade ago their shares fetched price-to-earnings multiples in the high teens, today they languish on valuations ranging from around seven times earnings for BP to 12 times for Exxon, despite the tripling of oil prices over the period. With the majors increasingly locked out of oil-rich nations, the difficulty of ramping up production bears much of the blame. But so, too, does a growing distaste for complexity among investors. Largely for historical reasons, today’s oil giants are ungainly combinations of higher growth exploration businesses shackled to sluggish refining and marketing operations. Observable valuation measures hint at a shareholder preference for simplicity. While the integrated majors as a group trade at around nine times 2011 earnings, pure exploration companies in the United States command multiples closer to 20 times, with independent refiners at about 14 times. Even allowing for the swifter growth of these smaller companies, investors are penalizing big oil companies. Oppenheimer researchers contend the United States majors could raise their valuations 20 percent by spinning off their refining and marketing operations. By this calculus, a partition would add $15 to Exxon’s $79 share price — or $80 billion to its nearly $400 billion market capitalization. Slower-growing leviathans don’t deserve the racier values accorded to the independents. Yet even a modest increase in price-to-earnings multiples could be a boon for investors. For instance, valuing Exxon’s exploration and production business at 13 times expected 2011 earnings — far less than independents command — would yield a stand-alone value of $382 billion, according to research from Madison Williams. Assuming a conservative multiple of 10 times for Exxon’s downstream, or refinery, businesses makes them worth $78 billion, Madison Williams calculates. Combined, that’s a 15 percent higher value than Exxon at present. That kind of illustration makes justifications for integration seem increasingly threadbare. Executives argue that lumping refiners and explorers together offers a natural hedge. In theory, when falling crude prices hurt production, the refining business gets relief from lower input costs. Exxon, for example, fared relatively well during the slide in oil prices of 2008, when its shares fell a mere 15 percent. Still, it seems Exxon was shielded more by its size and a lack of debt, rather than integration. The much smaller rival Marathon, for example, fell 55 percent over the year. In reality, oil prices and refining margins are frequently correlated, since both are led by fuel demand and economic growth. Big oil companies also claim that technology developed in one part of the business can be used in another. Yet with the possible exception of liquefying natural gas, energy experts struggle to think what these supposed synergies may be. Besides, technology can be easily bought or hired: none of the majors seem to have objected to relying on oil services companies like Schlumberger for technology and Transocean for rigs. Finally, energy majors contend that refining expertise helps clinch access to reserves in oil-rich nations. A company that knows refining, they say, is more likely to be granted exploration rights. This may have been true decades ago when large national oil companies were less sophisticated. Now they are more than capable of developing their own refining operations or signing joint ventures. So the benefits of integration are hard to pin down. By contrast, splitting up would make oil companies far easier for investors to value. It would surely sharpen management focus, since different skills are required to run exploration and refining operations. There is no reason to fear that oil giants would have to give up the scale needed to compete. Newly liberated exploration and production companies could simply hook up. Most of the smaller integrated oil companies, like Marathon and Murphy Oil, have already reached these conclusions. It may not be long before the majors do too.
- Media are invited to participate in a conference call on ExxonMobil’s Outlook for Energy at 10 a.m. ET Thursday, January 27. Presenting the Outlook will be William Colton, vice president, Corporate Strategic Planning, and Kenneth Cohen, vice president, Public and Government Affairs. Frank Verrastro, senior vice president and director of the energy program at the Center for Strategic & International Studies, will moderate the session.
- The Board of Directors of Exxon Mobil Corporation (NYSE: XOM) declared a cash dividend of 44 cents per share on the Common Stock, payable on March 10, 2011 to shareholders of record of Common Stock at the close of business on February 10, 2011
- ExxonMobil will release its fourth quarter 2010 earnings on Monday, January 31, 2011. A news release will be issued over Business Wire.
- Exxon Mobil once was poised to acquire a stake in Russia’s largest private oil company, only to have the deal fall apart when the Kremlin arrested the owner and the company went bankrupt. A few years ago BP was squeezed out by its Russian partners, and its top executive was forced into hiding. Yet both Exxon and BP are back big in Russia. So are some other large oil companies, which find the allure of Russian petroleum too strong to resist, whatever the political risks of dealing with the government or becoming partners with the country’s notoriously tough billionaires. Exxon Mobil, America’s largest oil company, signed a deal with the Russian state oil company, Rosneft, to explore offshore in the Black Sea. That came just two weeks after BP agreed to a share swap with Rosneft to form a joint venture to explore off the country’s ice-bound northern coast. Russia being Russia, though, BP is already in trouble over the new deal. Its wealthy Russian partners in a separate, private venture filed an injunction in a London court to block BP’s $16 billion Rosneft agreement. Despite the risks, Russian oil is where the action is for the West. The country is now the world’s largest oil-producing nation, pumping about 10 million barrels a day. That is currently more than Saudi Arabia’s output, although the two countries frequently trade off for first place. The bigger draw now, though, may be Russia’s willingness to engage in offshore exploration. Onshore oil reserves around the world are gradually being depleted. And new offshore drilling in environmentally attuned countries like the United States are currently off limits. But Russia is open to deepwater development. In Exxon Mobil’s case, that is in the Black Sea. With BP, it is even more on the cutting edge — off the Continental shelf in the Russian Arctic. Another big oil company, Chevron, also recently agreed to explore in Russia’s coastal waters. And Royal Dutch Shell — which in 2007 was forced to sell half of its $20 billion Sakhalin II oil and gas deepwater development to the state gas company, Gazprom — has been invited back by Russia to join the Sakhalin III and Sakhalin IV projects in the Pacific Ocean. The country’s top energy official, Igor I. Sechin, at the signing ceremony with Exxon, seemed eager to counter the lingering worry that Russia might nationalize its oil industry at any moment, saying it envisions its energy industry “as a part of an integrated global marketplace.” The signing was held in Davos, Switzerland, on the sidelines of the World Economic Forum. At the ceremony, Rex W. Tillerson, the Exxon chief executive who punched his Russian oil card earlier in his career as a manager of the Sakhalin I development during the 1990s, praised his company’s work with Rosneft as a “successful relationship.” The new deal-making by Rosneft is a matter of necessity, Valery Nesterov, oil and gas analyst at Troika Dialog investment bank in Moscow, said in a telephone interview. Russian law grants Rosneft exclusive rights to potentially rich offshore deposits. But it lacks the technology to develop them. “The only option is to cooperate with foreign companies,” Mr. Nesterov said. Western executives are betting this time that their technical knowledge may insulate them from Russia’s political and business vagaries. The Exxon-Rosneft agreement commits Exxon to spend about $1 billion looking for oil off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is discovered. But Russian authorities have reneged on deals with Exxon in the past. Desperate for investments when oil prices sank in the 1990s, Russia agreed to give Exxon generous terms that exempted it from most taxes and allowed it to sell much of the oil it prospected. But in recent years, local authorities have interfered in operations. In the early 2000s, Exxon was intent on acquiring a large stake in Yukos, once Russia’s largest private oil company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s main shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets to the state oil company, Rosneft. BP is now trying to do business with the state-owned Rosneft over the protests of its private Russian partners in a joint venture known as TNK-BP. BP’s arctic deal with Rosneft, announced late on Jan. 14, would give BP as much offshore acreage as lies in the British sector of the North Sea. But BP’s partners in the TNK-BP joint venture say the Rosneft deal violates their shareholder agreement. According to the TNK partners, BP should have provided the joint venture’s management with a detailed and written description of its arctic exploration plans before reaching the agreement with Rosneft. The venture has a right of first refusal for all BP work in the country, they say. The partners also said BP trampled on their rights by forging a strategic alliance with another company in Russia. The TNK venture, they said, was supposed to be the British company’s only major partner in the country. “BP appears to have closed its eyes to its obligations to TNK-BP,” the partners contend in their 28-page court filing in London, seeking an injunction against the Rosfneft deal. A BP spokesman said the company was aware of the injunction filing, but thought that it had not violated the shareholder agreement with the partners. It was unclear whether the legal action in London might be swiftly resolved, or whether this signified the opening moves in the type of protracted fight with TNK partners that plagued BP in Russia in 2008. Before that dispute, BP had signed a strategic cooperation agreement with another state energy giant, Gazprom, but that proved no help in what became a drawn-out battle with the BP’s partners. That dispute was resolved only when BP effectively surrendered management control of its Russian assets, while retaining the equity ownership in TNK-BP. In that earlier fight, Robert Dudley, the current chief executive of BP, had served as head of TNK-BP before BP lost control of the company. He was compelled to flee Russia and went into hiding for several months after his work visa was revoked.
• Upstream news:
- Exxon Mobil Corporation (NYSE:XOM) announced that additions to its proved reserves in 2010 totaled 3.5 billion oil-equivalent barrels, replacing 209 percent of production. Excluding the impact of asset sales, reserves additions replaced 211 percent of production. The annual reporting of proved reserves is the product of the corporation’s long-standing, rigorous process that ensures consistency and management accountability in all reserves bookings. The corporation’s reserves additions in 2010, the highest since the merger of Exxon and Mobil, reflect strategic acquisitions, new developments, as well as revisions and extensions of existing fields resulting from drilling, studies and analysis of reservoir performance. Reserves additions from acquisitions and subsequent revisions totaled 3 billion oil-equivalent barrels. Additions also came from the Sakhalin-1 Arkutun Dagi project in Russia and other countries including Canada, the United States, Nigeria, Norway and Abu Dhabi. Liquid additions totaled 905 million oil-equivalent barrels for a 102 percent replacement ratio and gas additions totaled 2.6 billion oil-equivalent barrels for a 328 percent replacement ratio. At year-end 2010, ExxonMobil's proved reserves base increased to 24.8 billion oil-equivalent barrels, including 2.8 billion oil-equivalent barrels from XTO. The proved reserves base is split between 47 percent liquids and 53 percent gas, and includes oil sands extracted by mining and equity company reserves. The 2010 proved developed reserves add of 3.3 billion oil-equivalent barrels was also the highest since the Exxon and Mobil merger, driven by the successful startup of several projects, the results of ongoing work programs, and the acquisition of XTO Energy Inc.
- The Marine Well Containment Company announced the completion and availability of an initial well containment response system that will provide rapid containment response capabilities in the event of a potential future underwater well control incident in the deepwater Gulf of Mexico. The initial response system includes a subsea capping stack with the ability to shut in oil flow or to flow the oil via flexible pipes and risers to surface vessels. The system also includes subsea dispersant injection equipment, manifolds and, through mutual aid among members, capture vessels to provide surface processing and storage. The company has consulted with the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) to ensure the system is designed to meet the government’s requirements as outlined in NTL No. 2010-N10. ExxonMobil, in partnership with Chevron, ConocoPhillips and Shell, continues to lead the development of additional system components to expand the initial system’s capabilities, with completion of the expanded system set for 2012.
• Downstream news:
- ExxonMobil Lubricants and Petroleum Specialties is introducing the Mobil Super family, a comprehensive line of premium-quality motor oils that are expertly formulated to help reduce wear, prevent sludge and extend engine life. Backed by the Mobil Super Engine Guarantee, the Mobil Super family of products is designed to help cars run longer and better. Mobil Super is already a successful brand marketed by ExxonMobil in Europe, Asia and Latin America, and it will now be available to drivers in the United States.
- ExxonMobil announced that the company renewed its long-standing technology partnership with the Vodafone McLaren Mercedes Formula 1™ team. The new multi-year agreement maintains the longest continuous oil company sponsorship with a Grand Prix race team. As part of the agreement, ExxonMobil will continue providing Vodafone McLaren Mercedes with Mobil 1 lubricant technology, expertise and support to develop next generation lubricants for the race car engine and gearbox, along with greases, hydraulic fluids and specialist race fuel. The Mobil 1 brand also will be prominently displayed on the Vodafone McLaren Mercedes race cars, driver overalls and driver helmets as it has since 1995. ExxonMobil will leverage the technology partnership as a key component of its global marketing and communications activities.
• Business/Finance news:
- Exxon Mobil, the largest American oil company, reported a 53 percent increase in its fourth-quarter profit, helped by an improving world economy that has increased energy demand and crude prices. It was the strongest quarterly profit in more than two years, reflecting the strong recovery in oil markets. They soared in 2007 and 2008, collapsed in 2009, and returned to loftier heights by the end of 2010. Exxon’s performance was in line with the strong results of most other large energy companies, which have benefited not only from rising oil prices but also from improved margins in their refinery businesses. Nevertheless, the results do not equal the record profits set a few years ago, when oil and gas prices were far higher than they were at the end of last year or even today. Oil prices have been steadily creeping up in recent months to over $90 a barrel, settling at $92.19. The turbulence in Egypt has made traders skittish about the possibility of shortages of supplies if the Suez Canal is somehow blocked or political tensions spread to nearby Saudi Arabia. But natural gas prices, which are increasingly important to big oil companies, which have been increasing their gas investments in recent years, remain depressed. Oil and gas prices rose again with developments in Egypt serving as a reminder that the energy markets were vulnerable to political events in such vital producing countries as Nigeria, Iraq and Iran, which did not suffer major production interruptions in 2010. Rising political tensions mixed with continued growth in economic demand usually means higher energy prices. But the Organization of the Petroleum Exporting Countries still has the capacity to produce more oil in the event of a slowdown in traffic in the Suez Canal or interruptions in production in one or two producing countries. Exxon Mobil’s profit in the quarter was $9.25 billion, or $1.85 a share, compared with $6.05 billion, or $1.27 a share in the period a year ago. Analysts surveyed by Thomson Reuters had expected $1.63 a share. Total revenue in the quarter was $105.2 billion, up from $89.8 billion in the quarter a year earlier. For the year, Exxon Mobil made $30.46 billion, or $6.22 a share, compared with $19.28 billion, or $3.98 a share, for 2009. Revenue for 2010 rose to $383 billion from $310 billion the previous year. Exxon Mobil said its production increased 19 percent in the quarter. Gas production in the United States has tripled as a result of the company’s acquisition of XTO Energy and other purchases of companies with shale field operations around the country. Gas now accounts for almost half of the company’s production, up from 43 percent a year ago. Earnings from the company’s upstream business, which includes oil and gas production, rose to $7.48 billion in the quarter from $5.78 billion in the period a year earlier. The company’s refining and marketing business reported earnings of $1.15 billion after a loss a year ago, driven by higher refining margins. Shares of Exxon Mobil rose $1.69 , or 2.1 percent, to $80.68. Most other oil companies also gained.
- The Hispanic Heritage Foundation (HHF) will host the 12th Annual National Youth Awards Ceremony in honor of actress America Ferrera and seven National Youth Awardees including Jose Antonio Villanueva from Los Altos, CA, for Math and Engineering, sponsored by ExxonMobil. The event will take place on February 9, 2011, on Capitol Hill in Washington, DC in front of an influential audience of 200 community and business leaders, elected officials, educational leaders, celebrities, students and families.
- Students at an HISD Apollo 20 school will get a rare opportunity to learn math from a geoscientist when ExxonMobil announces a grant to help Teach For America attract and train more math and science teachers in high demand. Houston’s Teach For America will receive $125,000 from the ExxonMobil Foundation to recruit, train and support science and math educators in Houston schools
- The Marine Well Containment Company announced its newly formed management team. The company is a not-for-profit, independent organization founded by ExxonMobil, Chevron, ConocoPhillips and Shell, which is committed to providing rapid response equipment to contain a potential future underwater well control incident in the deepwater Gulf of Mexico. The company has appointed Marty Massey as chief executive officer. Formerly U.S. joint interest manager for ExxonMobil Production Company, Massey will lead the management team and operations of the Marine Well Containment Company, with headquarters in Houston.
- The Marine Well Containment Company (MWCC) announced an initial well containment response system that will provide rapid containment response capabilities in the event of a potential future underwater well control incident in the deepwater Gulf of Mexico. Clay Vaughn, vice president of deepwater projects at ExxonMobil Development Company, and Marty Massey, chief executive officer of MWCC, will be available to answer questions from media on a conference call today at 11:00 a.m. ET.
- For the eighth consecutive year, ExxonMobil is hosting “Introduce a Girl to Engineering” sponsored by National Engineers Week, where company employees will host students in various activities designed to encourage careers in engineering. At 14 company locations, ExxonMobil engineers will engage middle-school students with presentations, hands-on experiments and demonstrations – all focused on math, science, engineering and technology.
- The Marine Well Containment Company welcomed Interior Secretary Ken Salazar and Bureau of Ocean and Energy Management, Regulation and Enforcement (BOEMRE) Director Michael Bromwich to Houston as part of ongoing discussions about the company’s interim well containment response system. The system will provide rapid containment response capabilities in the event of a potential future underwater well control incident in the deepwater Gulf of Mexico
• Upstream news:
- ExxonMobil will demonstrate its leadership across the natural gas value chain at the 2011 Gastech Conference and Exhibition, March 21 – 24 at the RAI Exhibition Center in Amsterdam. Celebrating its 25th conference, Gastech brings together leaders in the world’s professional gas community to address issues impacting the industry and its future.
- The changes and challenges of the past decade led to progress and growth for the natural gas industry, Linda DuCharme, director, Gas & Power Marketing, Europe, Russia and Caspian, ExxonMobil International Limited, said in a keynote address at the Gastech Conference and Exhibition in Amsterdam. DuCharme presented the keynote commercial address on “Natural Gas: A Decade of Change and Challenge.” She noted that by examining the changes in the commercial landscape from 2000 to 2010, stakeholders can better understand how natural gas has evolved in the overall energy mix. In the past decade, technological and commercial innovations expanded the flexibility of the LNG market, DuCharme said. “In a sense, 10 years ago, LNG was a boutique business, with deliveries point-to-point and no flexibility in the contracts. But a decade later, we've seen a significant linkage of global markets fueled by a doubling of production. We now have the ability to divert cargoes quickly and easily based on market conditions
- ExxonMobil Iraq Limited, together with the South Oil Company of Iraq and co-venturers Shell West Qurna B.V. and Oil Exploration Company of Iraq, announced a major production milestone in the redevelopment of the West Qurna I oil field in Southern Iraq. Initial field production of 244,000 barrels per day has now increased to 285,000 barrels per day, which exceeds the 10 percent improved production target established under the technical services contract.
• Downstream news:
- Disasters eventually end. Their aftermaths can seem infinite. More than two decades after the spill caused by the 1989 wreck of the Exxon Valdez in Alaska’s Prince William Sound, oil still coats the rocks on remote beaches and the great runs of herring that once filled fishermen’s nets have yet to return. And now, even after the Supreme Court has had its say, even after the company now called Exxon Mobil has pronounced the matter closed and said it would pay no more for environmental and economic damages, the company, the government and a marine biologist with a history of not letting either off the hook are heading back into federal court to argue over the meaning of a special section tucked into the original 1991 agreement over the spill that may or may not cost the company about $100 million. The section is known as the “reopener” provision, and, for the moment at least, it has reopened questions about Exxon Mobil’s continuing obligations and the government’s efforts — or lack thereof — to hold the company accountable. “If they were to be a responsible corporate citizen, they’d just cut a check on Friday and be done with it,” Rick Steiner, the marine biologist who has spent much of his career studying oil-spill issues, said of Exxon Mobil. As for the government, Mr. Steiner said his “greatest fear” is that it “wanted people to forget about” the remaining legal options in the Valdez case. Mr. Steiner has essentially forced the issue back into court single-handedly. In December, he filed a motion asking a judge to rely on the reopener provision to order Exxon to pay $115 million for what he said were unanticipated environmental damages caused by the wreck, which spilled 11 million gallons of oil into the sound and on its shores 22 years ago this month. Mr. Steiner points to studies that show a majority of the species affected by the spill have yet to fully recover. The amount he cites includes $92 million in damages — the reopener provision capped new damages at $100 million — and $23 million in interest. He said the government itself demanded the $92 million payment back in 2006, but has yet to follow up. The government, in consultation with the State of Alaska, replied to Mr. Steiner’s motion with one of its own saying that he had no standing in court. It also cited the government’s continuing studies of environmental damage. A spokesman for the Justice Department referred to a 2009 letter that said “these studies may well affect the scope of the government’s reopener claim.” Then, on Jan. 14, Judge H. Russel Holland of the United States District Court in Alaska, who presided over the 1991 agreement, surprised many people by ordering the parties to hold a hearing on the matter. The case was back on, the reopener provision suddenly relevant. Mr. Steiner, whose past efforts in court in the case have not always succeeded, said he was surprised “and delighted” that the issue is back in the public eye. Exxon Mobil appears less enthusiastic. The company, which has already paid about $900 million under the 1991 settlement, agreed with the government that Mr. Steiner had no standing. But it also took on the government, saying that whatever damage the sound still suffers is not unexpected and therefore does not meet the requirements of the reopener provision. Citing “20 years of intensive scrutiny” by “hundreds of scientists,” the company said, “the Prince William Sound and the oil spill area are in good ecological shape.”
- Mobil 1, the world’s leading synthetic motor oil brand, is teaming up with the popular motorcycle fabricators at Orange County Choppers (OCC) for the Mobil 1 Motorcycle Oil Sweepstakes. One lucky motorcycle enthusiast and a guest will win a trip to New York and a tour of the OCC shop. The sweepstakes is being offered exclusively through Advance Auto Parts.
- Season Three of “Mobil 1: The Grid,” a weekly 30-minute television series devoted to motorsports, will debut in the United States on SPEED at 7 a.m. EST on Saturday, March 5. This popular series will be available worldwide and broadcast in 25 languages.
- ExxonMobil is teaming up with Gymkhana star and World Rally Championship driver Ken Block, making Mobil 1 Extended Performance the official oil of Ken Block and the Monster World Rally Team. The new partnership continues the long tradition of Mobil 1 support in this arena and expands ExxonMobil’s ongoing commitment to motorsports around the world.
- ExxonMobil Japan Group has reopened its Shiogama Terminal, enabling delivery of increased fuel supplies into the Tohoku area of North East Japan, which was affected by the March 11 earthquake and tsunami. The terminal received its first marine shipment of one million liters of gasoline and one million liters of kerosene, to be used for heating fuel, from the TonenGeneral Kawasaki refinery on March 22.
- In celebration of Mobil 1’s sponsorship of Tony Stewart and Stewart-Haas Racing, ExxonMobil will give away a 2011 Chevrolet Camaro customized by Stewart.
- In an ongoing effort to quickly and safely supply much needed fuel to the areas in Japan hardest hit by the earthquake, ExxonMobil Group Japan has increased fuel supply into its Tohoku region dealer service station network by 140 percent above pre-earthquake levels. Since the March 11 earthquake and tsunami, ExxonMobil has moved more than 24 million liters of fuel, including gasoline, diesel, and kerosene, into the Tohoku region in northeast Japan, enough to fill 1,200 tank trucks.
• Business/Finance news:
- ExxonMobil Foundation and Dr. Bernard A. Harris, Jr., the first African-American to walk in space, are partnering for the sixth consecutive year to provide more than 1,200 middle school youth with a fun, engaging math and science experience this summer at no cost to students. The ExxonMobil Bernard Harris Summer Science Camps will be hosted by 25 universities across the country. One of the largest programs of its kind, these camps offer students the unique opportunity to replace the lazy days of summer with field work, experiments and team-based competitions. Each activity is designed to spur interest in math and science and reach students from school districts around the country.
- A federal district judge rejected a request to immediately order Exxon Mobil to pay more than $100 million to help Prince William Sound recover from the oil spill caused by the 1989 wreck of the Exxon Valdez. A marine biologist said the government, which first demanded the money in 2006, had failed to follow up its claim. The government said it was still studying how to proceed. The judge, H. Russel Holland, asked for a status report by Sept. 15.
- A federal district judge rejected a request to immediately order Exxon Mobil to pay more than $100 million to help Prince William Sound recover from the oil spill caused by the 1989 wreck of the Exxon Valdez. A marine biologist said the government, which first demanded the money in 2006, had failed to follow up its claim. The government said it was still studying how to proceed. The judge, H. Russel Holland, asked for a status report by Sept. 15.
- In recognition of International Women’s Day, ExxonMobil and the ExxonMobil Foundation announced $6 million in grants to support economic opportunities for women around the world. The grants fund initiatives that, in partnership with nongovernmental organizations and local governments, have been successful in improving living standards in developing countries and breaking historic barriers that have blocked women from the marketplace
- Exxon Mobil Corporation (NYSE:XOM) continued to deliver industry-leading results in 2010 through an integrated and disciplined business approach, and remains well-positioned to meet growing long-term global energy and petrochemical demand, the company said in its annual presentation to investment analysts at the New York Stock Exchange. Tillerson said that ExxonMobil expects global energy demand to increase by 35 percent by 2030, compared to 2005 levels, and demand for natural gas will make it the fastest growing major energy source. To meet that demand, ExxonMobil will continue to invest through the business cycle. The volume of oil and natural gas produced by ExxonMobil is expected to grow by between three and four percent in 2011 and by four to five percent per year, on average, between 2009 and 2014. In addition, normal field decline is expected to be about three percent per year, which is about half the typical rate, in part due to increasing levels of unconventional and long-plateau volumes. Eleven major upstream project start-ups are planned between 2011 and 2013. In 2011, the company expects to deliver 120,000 net oil-equivalent barrels per day from 2010 project start-ups and anticipates adding almost 1.4 million net oil-equivalent barrels per day by 2016. Nearly 80 percent of the new production will be oil, much of which will contribute to long-plateau volumes. In 2010, ExxonMobil reported earnings of $30.5 billion, an increase of 57 percent, excluding special items, over 2009, and generated cash flow of $51.7 billion. This provided the company with important flexibility to fund the development of new energy, and return $19.7 billion to shareholders through dividends and a share purchase program. Over the past five years, dividends have increased by 53 percent and the share purchase program was at a level more than double that of the company’s competitors. ExxonMobil’s return on average capital employed, a key indicator of disciplined decision making and financial performance, was an industry-leading 22 percent in 2010, more than four percentage points higher than its nearest competitor.
- Exxon Mobil Corporation (NYSE: XOM) said it would donate $1 million to the Japanese Red Cross Society to provide disaster relief assistance in response to the recent earthquake and tsunami in Japan. The company has also implemented a worldwide program to match employee, retiree, dealer and distributor donations to Japanese disaster relief, up to a further $2 million.
- To the Editor: “Address the Fears on ‘Fracking’ ” (Reuters Breakingviews, Business Day, March 7) portrays Exxon Mobil as forming “a united front against regulation.” Along with other companies, Exxon Mobil works with state regulatory authorities to develop sound, science-based regulations for oil and gas drilling. We are also engaged in industrywide efforts to develop best practices. Exxon Mobil supports the disclosure of ingredients used in hydraulic fracturing fluids, including on a site-specific basis. The development of cleaner-burning natural gas is vital to our nation’s energy security and provides well-paying jobs and billions of dollars for federal, state and local economies. Hydraulic fracturing has been used safely since the 1940s in more than one million wells in the United States and is crucial to developing America’s vast unconventional gas resources. According to a 2009 Global Insight study, without the use of hydraulic fracturing, our nation would lose 45 percent of its domestic natural gas production and 17 percent of its oil production within five years. This great domestic resource can be developed and is being developed responsibly. Exxon Mobil is working with others in the industry to advance sound operations and responsible practices. Ken Cohen, Vice President, Public and Government Affairs, Exxon Mobil. Irving, Tex., March 14, 2011.
- The Marine Well Containment Company (MWCC) announced that Apache Deepwater LLC, a subsidiary of Apache Corporation, has joined as a member. MWCC is a not-for-profit, independent organization committed to being continuously ready to respond to a well control incident in the deepwater Gulf of Mexico.
- The hunt is on for hard-working interns to help North exas nonprofit agencies as the Volunteer Center of North Texas searches for qualified college students to answer the call to help serve those in need. From helping create job-search programs for families in crisis to providing services to newly arriving refugees, college students can make a significant difference through the ExxonMobil Community Summer Jobs Program. Applications are now available for eight-week paid internships at 60 local non-profit agencies.
- The Mickelson ExxonMobil Teachers Academy announced the selection of 200 elementary school teachers from across the country to enhance their math and science teaching skills through an innovative development program at the national Mickelson ExxonMobil Teachers Academy. This year’s national academy will be held at Liberty Science Center in Jersey City, New Jersey. The Mickelson ExxonMobil Teachers Academy today announced the selection of 200 elementary school teachers from across the country to enhance their math and science teaching skills through an innovative development program at the national Mickelson ExxonMobil Teachers Academy. This year’s national academy will be held at Liberty Science Center in Jersey City, New Jersey. The Mickelson ExxonMobil Teachers Academy today announced the selection of 200 elementary school teachers from across the country to enhance their math and science teaching skills through an innovative development program at the national Mickelson ExxonMobil Teachers Academy. This year’s national academy will be held at Liberty Science Center in Jersey City, New Jersey.
• Upstream news:
- The Marine Well Containment Company (MWCC) announced that BHP Billiton has joined as a member. “BHP Billiton, which has producing assets and a significant acreage position in the deepwater Gulf of Mexico, has elected to join the Marine Well Containment Company,” said Marty Massey, MWCC chief executive officer. “Our growing membership is taking a leadership role in improving industry response capabilities in the deepwater Gulf of Mexico.” Other MWCC members include ExxonMobil, Chevron, ConocoPhillips, Shell, BP, Apache and Anadarko. System equipment and services will be available to members and non-members. Non-members will be able to enter into agreements for access to the MWCC system on a per well fee basis. The company’s interim containment system is ready for deployment today and is capable of operating in a water depth of 8,000 feet and processing up to 60,000 barrels of fluid per day. Work is also underway to expand the system to operate in a water depth of 10,000 feet and process up to 100,000 barrels of fluid per day, with components to be delivered in 2012.
- ExxonMobil and Imperial Oil announced that a test module to demonstrate the safe transportation of oversized shipments with minimal public disruption will begin its journey on April 11 from Lewiston, Idaho. The test module is part of a comprehensive transportation plan to move modules for the Kearl project from Idaho to Canada. The modules consist of new structural steel, piping and electrical equipment. ExxonMobil and Imperial Oil remain committed to the successful transportation of the Kearl modules and to providing residents in both Idaho and Montana a full understanding of the project. As part of that commitment, the companies will launch www.kearltransport.com on April 11 to provide residents with up-to-date information. To date the companies have directly invested over $30 million in Idaho and Montana and expect that the transportation of the Kearl modules could generate over $100 million of economic benefits in both states.
- The Marine Well Containment Company (MWCC) announced that Statoil has joined as a member. Marty Massey, MWCC chief executive officer, said, “We welcome Statoil as a member of the Marine Well Containment Company. As part of MWCC, Statoil joins our effort to improve the containment and response capability in the deepwater Gulf of Mexico and be continuously ready to respond in the event of a future deepwater well control incident
- The Marine Well Containment Company (MWCC) announced that its membership has grown to 10 members at the conclusion of the company’s formation period. The MWCC member companies are now Chevron, ConocoPhillips, ExxonMobil, Shell, BP, Apache, Anadarko, BHP Billiton, Statoil and Hess. These 10 companies operated approximately 70 percent of deepwater wells drilled in the U.S. Gulf of Mexico between 2007 through 2009. MWCC’s interim containment response system, which is ready for deployment, is capable of operating in water depths of 8,000 feet and processing up to 60,000 barrels of fluid per day. Work is under way to expand the system to operate in water depths of 10,000 feet and process up to 100,000 barrels of fluid per day, with components to be delivered in 2012.
- ExxonMobil Production Company’s U.S. operations have earned the Gas Processors Association (GPA) 2010 Company Safety Award. The efforts of about 500 employees working over one million work hours at the company’s gas processing facilities led to first place honors for outstanding midstream safety performance. This marks the fourth time in six years ExxonMobil Production Company’s U.S. operations have earned the Company Safety Award from GPA.
• Downstream news:
- ExxonMobil (NYSE:XOM) is launching its latest in mobile technology – the Exxon Mobil Fuel Finder application for Android. The application gives real-time maps, driving directions, and station information for nearly 10,000 Exxon and Mobil retail locations across the continental United States
• Business/Finance news:
- More than two hundred bright, young Texans were recognized with awards at the ExxonMobil Texas Science and Engineering Fair (EMTSEF), a four-day competition that brings together top science fair winners from across the state. Madeleine Ball of Dallas received Best of Fair in the senior division, and Kaleigh Gallant and Emily Lowry, both of Frisco, won the top honor for the junior division. The event was hosted by The University of Texas at San Antonio at the Henry B. Gonzalez Convention Center in San Antonio. Students competed in two divisions – junior (grades six through eight) and senior (grades nine through 12) – in one of 17 categories. Selected from more than 1,000 entries, awards were given to first through fourth place winners in each category as well as Grand Prize and Best in Fair projects in each division. Senior division Grand Prize winners received all-expense paid trips to compete at the Intel International Science and Engineering Fair May 8–13 in Los Angeles. The top 10 percent of competitors in the junior division qualified to participate in the Broadcom MASTERS program.
- It has been nearly a year since the chief executives of the five biggest multinational oil companies were hauled before a committee of Congress for a ritual flaying. Last June, the heads of Exxon Mobil, Chevron, Shell, BP and ConocoPhillips were called by the House Energy and Commerce Committee to testify on the Deepwater Horizon disaster, which at the time was still pouring 50,000 barrels of oil a day into the Gulf of Mexico. The same Big Five executives will appear before the Senate Finance Committee to explain why they need more than $4 billion a year in tax breaks even as they are raking in near-record profits (more than $35 billion in the first quarter of 2011 alone). The cast of characters is the same: Rex W. Tillerson, chief executive of Exxon Mobil; John S. Watson of Chevron; Marvin E. Odum of the United States division of Shell; H. Lamar McKay of BP America; and James J. Mulva of ConocoPhillips.These Congressional set pieces feature the dark-suited villains of the day (tobacco executives, bankers, oil company chieftains) standing in a row taking an oath to tell as much of the truth as their lawyers will allow. The legislative scorecard is mixed. The tobacco companies were brought to heel by state attorneys general, not by Congress. The Obama administration and Congress are still wrestling over bank regulation and consumer financial protection. Neither the House nor the Senate has passed comprehensive legislation dealing with offshore oil drilling. And despite the current angst over high gasoline prices, it is unlikely that Democrats can muster enough votes in both chambers to take away the oil companies’ favorable tax treatment.
- The ExxonMobil Japan Group will donate one million liters of fuel to aid recovery efforts in areas hardest hit by the earthquake and tsunami in March. Coupons for gasoline, kerosene or diesel will be provided to municipal authorities in the Iwate, Miyagi and Fukushima prefectures, who will distribute them according to local priorities. Expected recipients of the fuel donations will be evacuation centers, construction vehicles and others in need, including those who assist in maintaining home care for the elderly and other affected residents.
- Exxon Mobil Corporation and the National Society of Black Engineers (NSBE) have announced the inaugural winners of the Impact Award, a recognition that honors universities for retaining under-represented minority students enrolled in engineering programs on their campuses. Purdue University, Virginia Tech and the University of Texas at Austin each received a $10,000 award from ExxonMobil and NSBE to bolster their efforts. All the recipients were recognized at an event held April 13 at the Carnegie Institution for Science in Washington, DC.
- The ExxonMobil Foundation announced grants for 2011 aimed at making further advances to combat malaria and raise awareness of this disease. The new grants will be highlighted at the opening of the “Champions to End Malaria” photo exhibition at the United Nations headquarters in New York City.
- ExxonMobil Iraq Limited is contributing 1.2 billion Iraqi dinar (US$1 million) to equip petroleum engineering laboratories at the University of Basrah to be used by students seeking careers in Iraq’s oil and gas industry. This grant will also fund faculty and curriculum development under which some 46,000 students are expected to study over the next 20 years
- ExxonMobil will release its first quarter 2011 earnings on Thursday, April 28. A news release will be issued over Business Wire.
- ExxonMobil and its employees donated more than $38 million to 924 colleges and universities across the United States through the ExxonMobil Foundation’s 2010 Educational Matching Gift Program,
- The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) declared a cash dividend of 47 cents per share on the Common Stock, payable on June 10, 2011 to shareholders of record of Common Stock at the close of business on May 13, 2011.
- Exxon Mobil and Royal Dutch Shell reported huge increases in their first-quarter profit, helped by higher oil prices and earnings from refining. Exxon Mobil, the largest American oil company, said net income rose 69 percent to $10.7 billion, or $2.14 a share, in the first three months of this year, from $6.3 billion, or $1.33 a share, in the same period last year. The earnings beat some analysts’ expectations, and was the fifth consecutive quarter that Exxon reported an earnings increase. Shell reported earlier on Thursday that its profit for the period rose 30 percent. Oil companies are benefiting from a rise of more than 30 percent of the price of oil over the last year. Concerns about political unrest in North Africa and the Middle East have pushed prices to heights some analysts said were not justified by the level of demand. Continued growth in economic demand is expected to support a relatively high price of oil but there are signs that rising gasoline prices are keeping some consumers in the United States from filling up their tanks. Exxon’s earnings “reflect continued leadership in operational performance during a period of strong commodity prices,” Exxon’s chairman, Rex W. Tillerson, said in a statement. Exxon’s and Shell’s earnings were much better than those of its rivals BP and ConocoPhillips. BP reported a drop in first-quarter earnings because of costs linked to the Gulf of Mexico oil spill and ConocoPhillips missed some analysts’ expectations because of a decline in production. Chevron, the second-largest American oil company, is set to report earnings. Revenue at Exxon increased 26 percent, to $114 billion, from $90.3 billion; oil-equivalent production increased more than 10 percent from the first quarter of last year. A group of analysts surveyed by Thomson Reuters on average expected Exxon to report a first-quarter profit of $2.07 a share. Royal Dutch Shell, Europe’s biggest oil company by market value, said profit excluding one-time items rose to $6.3 billion from $4.8 billion after refining profit more than doubled to $1.65 billion. Shell has been cutting costs and selling assets to make the company more profitable. Earlier this year, Peter Voser, Shell chief executive of Shell, said he would continue to reduce costs by another $1 billion and at the same time increase output by investing in new projects, including in Qatar.
• Upstream news:
- The Offshore Technology Conference (OTC) presented ExxonMobil Development Company with a special citation for the development and implementation of the “Design One, Build Multiple” strategy that successfully delivered large-scale deepwater projects offshore Angola on Block 15 that achieved peak production of over 700,000 barrels of oil per day. The projects in Block 15, approximately 90 miles off the coast of Angola, established industry benchmarks for completion time and unit development costs for deepwater projects of their size and complexity. To date, over one billion of the five billion barrels discovered on the block have been produced. Current production is approximately 500,000 barrels per day
- Marine Well Containment Company (MWCC) announced that it has opened its headquarters in Houston. The offices house the day-to-day business operations as well as a dedicated emergency response center in the event MWCC is called to respond to a deepwater well control incident in the U.S. Gulf of Mexico.
- ExxonMobil Production Company announced that drilling and construction have started on an enhanced oil recovery project at the Means Field in Andrews County, Texas. The first phase of the project has the potential to recover as much as five million barrels of additional oil, an amount equal to the annual energy needs of about 170,000 Texas households. ExxonMobil has more than two decades of experience with carbon dioxide injection for enhanced oil recovery at the Means Field. The new project will apply technology to produce oil that until recently was technically and economically challenging to develop. Carbon dioxide injection is expected to begin before year end 2011. This first phase could lead to future development phases, which could significantly increase oil recovery from the field.
• Downstream news:
- As part of its continued efforts to provide much-needed fuel to disaster-stricken areas in Japan, ExxonMobil Japan Group has opened the first temporary service station in the city of Rikuzentakata. All conventional service stations in this area were destroyed by the March 11 tsunami. With the support of Japan’s Ministry of Economy, Trade and Industry (METI), ExxonMobil designed and constructed this temporary service station as a contribution to relief efforts. The innovative design includes the use of two International Organization for Standardization (ISO) tanks in place of conventional storage tanks. ISO containers have the capacity to hold 20,000 liters - enough to fill 500 passenger vehicles with one load. This provides a safe alternative to fueling directly from drums or barrels and can serve as an interim solution until conventional service stations are rebuilt.
• Business/Finance news:
- To express appreciation to customers, ExxonMobil is offering 15 cents off per gallon of gas purchased with a registered Speedpass™ account, just in time for Memorial Day weekend travel.
- Exxon Mobil Corporation (NYSE:XOM) announced it will donate $100,000 to the American Red Cross to provide disaster relief assistance in response to the recent tornadoes that impacted Alabama and other states.
- ExxonMobil is holding its annual meeting of shareholders on Wednesday, May 25, 2011. Media access will be provided to authorized representatives of commercial news organizations who pre-register by Friday, May 20, 2011. Please note, only media who have pre-registered will be provided access to the annual meeting.
• Upstream news:
- Exxon Mobil Corporation (NYSE:XOM) announced two major oil discoveries and a gas discovery in the deepwater Gulf of Mexico after drilling the company's first post-moratorium deepwater exploration well. The KC919-3 wildcat well confirmed the presence of a second oil accumulation in Keathley Canyon block 919. The well encountered more than 475 feet of net oil pay and a minor amount of gas in predominantly Pliocene high-quality sandstone reservoirs. The well, which is continuing to drill deeper, is located 250 miles southwest of New Orleans in approximately 7,000 feet of water. Drilling in early 2010 encountered oil and natural gas at Hadrian North in KC919 and extending into KC918, with over 550 feet of net oil pay and a minor amount of gas in high-quality Pliocene and Upper Miocene sandstone reservoirs. ExxonMobil encountered 200 feet of natural gas pay in Pliocene sandstone reservoirs at its Hadrian South prospect in Keathley Canyon block 964 during drilling in 2009.
- Exxon Mobil has made two big new oil discoveries and a natural gas find in the deepwater Gulf of Mexico, news that underscores the importance of the basin to American crude output. Oil and gas exploration in the gulf was halted by the United States government last year after the blowout at BP’s Macondo well, and activity in the gulf remains at levels far below those seen before the oil spill. Exxon estimated the new wells could produce about 700 million barrels of oil equivalent. This portion of the deepwater gulf is thought to hold as much as 15 billion barrels of oil. Recent large discoveries there include BP’s Kaskida field, estimated to hold three billion barrels of oil. Exxon had reserves of 24.8 billion barrels of oil equivalent at the end of last year. The discoveries are the company’s first in the gulf since the government moratorium was lifted. Exxon has not finished its development plan yet, and more drilling will be needed to further appraise how much oil is in the reservoir. Production could be years away. The wells are located in the Keathley Canyon at a water depth of about 7,000 feet, 250 miles southwest of New Orleans. Exxon owns a 50 percent interest in the three new wells, which are part-owned by Eni Petroleum U.S., part of Eni of Italy, and Petrobras of Brazil. Last month, Noble Energy said it made an oil discovery at its Santiago prospect in the deepwater gulf. Noble was the first company to receive a drilling permit from regulators after the drilling halt.
- Marine Well Containment Company (MWCC) announced that its capping stack has met the requirements for containment operations in water depths up to 10,000 feet, which is an increase from the previous water depths of up to 8,000 feet. The capping stack is the centerpiece of an interim response containment system and is designed to cap or contain the flow of hydrocarbons in a deepwater well control incident. It can handle pressures of up to 15,000 pounds per square inch. The capping stack provides a dual barrier for containment through a blowout preventer ram and a containment cap. Through its side valves, the capping stack can also redirect the flow of fluid to surface vessels through flexible pipes and risers, if necessary. The capping stack is tested and maintained in a continuous state of readiness for mobilization and measures approximately 30 feet in height, 14 feet in width and weighs almost 100 tons. A Shell permit application, which cited the MWCC interim system for drilling in 9,800 feet of water in the Tobago Field, met the requirements of the Bureau of Ocean Energy, Management, Regulation and Enforcement and was approved. An expanded containment system is on track for delivery in 2012. In addition to operating in water depth up to 10,000 feet, the system will have the capacity to capture up to 100,000 barrels of fluid and 200 million cubic feet of gas per day.
• Downstream news:
• Business/Finance news:
- ExxonMobil Pipeline Company (EMPCo) announced it will donate $25,000 to the Mid-South American Red Cross to provide disaster relief assistance in response to the recent flooding that impacted the City of Memphis. EMPCo is a subsidiary of Exxon Mobil Corporation (NYSE:XOM).
- The ExxonMobil Community Summer Jobs Program began its 21st year with the induction of 60 college students eager to make a difference in North Texas. The program, administered by the Volunteer Center of North Texas, supplies nonprofit organizations with much-needed help during peak summer months, while also providing college students with hands-on experience through eight-week paid internships.
- ExxonMobil announced the development of a new office campus in north Houston for employees currently working in a variety of locations in the Houston area. The complex will be located on a 385-acre wooded site on company-owned land near the intersection of I-45 and the Hardy Toll Road. It will contain multiple low-rise office buildings, a laboratory, conference and training centers and facilities such as child care, a wellness center and other employee amenities. It is expected that most employees working in the corporation’s Houston Upstream head office activities, along with ExxonMobil Chemical Company and various staff support services, will be based at the campus. Employees will move in phases as the buildings are constructed, beginning early 2014. Full occupancy for Houston-based employees is expected by 2015.
- The Council of the Great City Schools has named four high school seniors as the 2011 winners of the ExxonMobil Bernard Harris Math and Science Scholarships. The scholarship program was created by the first African American to walk in space and the ExxonMobil Foundation to increase the number of underrepresented students pursuing careers in science, technology, engineering or math (STEM).
- The Sally Ride Science Academy brought to you by ExxonMobil announced that 275 upper elementary and middle school
educators from across the country were selected to learn new, innovative strategies to raise students’ awareness of and interest in science, technology, engineering and math (STEM) careers. The Academy is a partnership between Sally Ride Science, founded by the first American woman in space, Dr. Sally Ride, and ExxonMobil. The program educates teachers and counselors on the importance of introducing young students to STEM careers, showcases diverse role models in those careers, and provides pathways to incorporate STEM career awareness in the classroom. In addition, the Academy provides gender equity training to help educators foster an encouraging, collaborative learning environment.
- ExxonMobil Pipeline Company (EMPCo) announced it will donate $25,000 to the Pioneer Valley American Red Cross to provide disaster relief assistance in response to the recent tornadoes that impacted the City of Springfield. EMPCo is a subsidiary of Exxon Mobil Corporation (NYSE:XOM). ExxonMobil Pipeline Company's donation is being directed to the Pioneer Valley American Red Cross Disaster Relief Fund to support tornado relief efforts in the City of Springfield. The Relief Fund provides food, shelter, counseling and other assistance to the victims of this disaster and thousands of other disasters across the country each year. ExxonMobil Pipeline Company has several facilities in Massachusetts including distribution terminals in Springfield and Everett, a pipeline that operates from Springfield to East Providence, Rhode Island and employs approximately 23 people in the state who support those operations.
• Upstream news:
• Downstream news:
- ExxonMobil Pipeline Company issued the following statement concerning a crude release into the Yellowstone River in Montana: Early on the morning of July 2, we discovered an undetermined amount of crude oil was released into the Yellowstone River from an ExxonMobil Pipeline Company (EMPCo) pipeline. EMPCo deeply regrets this release and is working hard with local emergency authorities to mitigate the impacts of this release on the surrounding communities and to the environment. The release originated from a 12” crude pipeline operated by EMPCo that runs from Silver Tip, MT to Billings, MT. The pipeline has been shutdown and the segment where the release occurred has been isolated. All appropriate state and federal authorities have been alerted. At this early stage, we have no information on the cause of the incident, and we are working to determine the amount of oil released. ExxonMobil has activated its North American Regional Response Team to assist in the clean up efforts. A claims number 1-888-382-0043 has also been established to assist individuals who might have been impacted by this event.
- An Exxon Mobil pipeline that ruptured along the Yellowstone River in south-central Montana, spilling crude oil into the river and forcing evacuations, had been shut down for one day in May because of concerns over the rising waters on the Yellowstone, the company said. The president of the Exxon Mobil Pipeline Company, Gary Pruessing, said in a conference call that the company decided to restart the line after examining its safety record and determining that the risks of failure were minimal. The pipeline, which is buried about eight feet below the river, runs about 70 miles to Billings, Mont., where it supplies an Exxon refinery. Mr. Pruessing said it was unclear what had caused the spill. In addition to sending 70 employees to clean up and investigate, Exxon said it was using contractors and airplanes to search for oil along the riverbank and to assess whether the shores had been damaged. Exxon’s team was joined by federal and state workers who traveled to the affected area to assess the damage. Mr. Pruessing said that company observers flying over the river had seen “very little soiling” beyond Billings. Tim Thennis, a public assistance officer at the Montana Disaster and Emergency Services Division, told The Associated Press that the company’s claim was reasonable but had not been independently verified. Claire Hassett, a spokeswoman for Exxon, said by telephone that the company had reduced production at its refinery in Billings and shut down the pipeline after the leak, which the company estimated at 750 to 1,000 barrels. Industry experts said that the amount was relatively small, although it remained uncertain precisely how much oil had been leaked. The company said that air-quality monitoring in the affected area was continuing and that there was no danger to public health. It said the impact of the spill on water quality had not been determined. The pipeline burst about 10 miles west of Billings, coating parts of the Yellowstone River that run past Laurel — a town of about 6,500 downstream from the rupture — with shiny patches of oil. Throughout the weekend, cleanup crews in Laurel worked to lessen the impact of the spill, laying down absorbent sheets along the banks of the river to mop up some of the escaped oil and measuring fumes to determine the health threat. Fearing a possible explosion, officials in Laurel evacuated about 140 people after midnight, then allowed them to return at 4 a.m. after tests showed that fumes from the leaked oil had dissipated, The Associated Press reported. While the cause of the rupture was not immediately known, Brent Peters, the fire chief for Laurel, told the news agency that it might have been caused by high waters eroding parts of the riverbed and exposing the pipeline to debris. The pipeline is 12 inches wide and runs to Billings, an area with three refineries, Exxon Mobil said. All three were shut down after the spill. Exxon Mobil said it had called in its North American Regional Response Team to help clean up the spill, and a Fire Department spokesman in Laurel said more than 100 people, including officials with the Environmental Protection Agency, were also dispatched. In a statement, Exxon Mobil said it “deeply regrets this release and is working hard with local emergency authorities to mitigate the impacts of this release on the surrounding communities and to the environment.” “The pipeline has been shut down and the segment where the release occurred has been isolated,” the statement added. “All appropriate state and federal authorities have been alerted.” The rupture occurred around 11:30 p.m. Duane Winslow, a disaster and emergency services coordinator for Yellowstone County, told a local television station, KTVQ, that all oil companies with pipelines near the river were told to immediately shut them down, and that the damaged pipe was shut down within half an hour. Mr. Winslow said drinking water in the surrounding area was being monitored and so far had been determined to be safe. Officials in Billings initially shut down water intake but later reopened it, KTVQ reported.
- Gary Pruessing, president of ExxonMobil Pipeline Company, will be available to media to discuss the company’s response to the release of oil into the Yellowstone River. Pruessing will be joined by Duane Winslow, Yellowstone County Disaster and Emergency Services, and John Ostlund, Yellowstone County commissioner.
- ExxonMobil Pipeline Company provided an update as cleanup operations continued following a release of oil into the Yellowstone River.
- Gary Pruessing, president of ExxonMobil Pipeline Company, will be available to update media on the company’s ongoing response to the release of oil into the Yellowstone River. The briefing will be held at the site of cleanup operations on Thiel Road in Laurel, MT, where media will have the opportunity to observe cleanup crews at work.
- ExxonMobil Pipeline Company provided the following update as Unified Command cleanup operations continued following a release of oil into the Yellowstone River on July 1: Under the direction of the Unified Command, almost 700 people are now involved in the response and cleanup effort including ExxonMobil’s North America Regional Response Team, the Clean Harbors and ER oil spill response organizations and additional contractors. We have deployed more than 43,000 feet of boom and approximately 260,000 absorbent pads to clean up oil adjacent to the river. Deployment continues to focus on the highest priority areas to reduce environmental impact. Forty-six boats are available for deployment on the river when conditions permit, and air boats are being used to help ferry workers to and from the shore to various cleanup sites where conventional motorboats cannot be used. The EPA is leading the Unified Command Center cleanup activities and conducting ongoing air and water quality monitoring. Ongoing air quality monitoring has confirmed there is no danger to public health. Municipal water systems continue to be monitored by the EPA; no reports of impacts have been received to date. For additional information, please visit www.epa.gov/yellowstoneriverspill. We are working to ensure we meet the requirements of U.S. Department of Transportation’s Corrective Action Order before we resume pipeline operations in Billings. In order to lessen the impact of the pipeline shutdown on the local economy, we have also begun preliminary work for the replacement of the pipeline. This work includes discussions on permitting requirements, rights of ways, drilling equipment, contracting and pipeline fabrication and transportation. ExxonMobil employees are visiting residents in the most impacted areas of the spill to ensure residents’ needs are being met. To date, we have visited more than 150 residents. Our goal is to answer any questions residents may have about the claims process or spill and cleanup activities. We will continue reaching out to residents throughout the week. To date we have received more than 300 calls from the community. Our team is responding to more than 120 claims related to property, agriculture or health, and these claims are being resolved as quickly as possible. More than 130 calls have been from people offering volunteer assistance. We appreciate the support of the Billings community as we work to restore the area. To address individual health concerns, teams of trained environmental specialists are conducting air and water quality testing. Those who may have been affected are encouraged to use the community information line (1-888-382-0043). We continue to work with International Bird Rescue, U.S. Fish and Wildlife Service and Montana Fish, Wildlife and Parks to survey the area for impacts to wildlife. Members of the team are surveying the affected areas of the river for oiled wildlife. We are also inspecting the property of landowners who have called the community or wildlife hotlines regarding impacted wildlife on their property. The total number of treated wildlife is four: a garter snake and a western toad (which were treated and released), a Woodhouse’s toad (which will be released today) and a warbler (which is being cleaned). In addition, several oiled birds were observed and we are assessing if any require capture or cleaning. Today, two boats are scheduled to go out onto the slack, or shallow, water to continue to search for any additional wildlife that may have been affected by the incident. Aerial helicopter surveys are conducted daily to observe wildlife conditions.
- Ten days into the oil spill on the Yellowstone River in Montana, the federal government is releasing test data indicating that the air and drinking water do not appear to pose safety risks. According to Exxon Mobil, about 1,000 barrels of oil leaked from its Silvertip pipeline into the Yellowstone River. Raging flood waters prevented testing on the river in the immediate aftermath of the leak. The Environmental Protection Agency said in a statement that the waters had receded enough that the agency had begun putting boats in the river.The agency is also sampling hundreds of drinking wells in the area. “We want to screen every drinking water well within the heaviest affected area between Laurel and Billings as quickly as possible and move downriver from there,” Steve Merritt, the E.P.A.’s on-scene coordinator, said in a news release. Findings from earlier tests of water systems have so far shown that the water is safe for drinking. The E.P.A. has said in earlier statements that the odor of evaporating oil is not causing severe air pollution but that some people could experience symptoms like nausea and headaches. A map for both water and air monitoring data is now available at the E.P.A.’s Web site. The E.P.A. said it had rejected several elements of Exxon Mobil’s proposed work plan as incomplete or requiring technical clarification. It expects to receive an amended work plan next week, the agency said.
- Exxon Mobil Corporation’s U.S. marine affiliate, SeaRiver Maritime, Inc., signed a letter of intent with Aker Philadelphia Shipyard, a leading U.S. shipbuilding facility in Pennsylvania, for the construction of two U.S. flag, crude oil tankers in partnership with Samsung Heavy Industries, a leader in shipbuilding technologies. The vessels will be used to transport Alaska North Slope crude oil from Prince William Sound, Alaska to U.S. West Coast destinations. Project planning work is underway with construction of the 115,000 deadweight ton tankers expected to begin by mid-2012. The vessels are scheduled for delivery in 2014 and will be capable of carrying 730,000 barrels of crude oil to help meet U.S. energy needs. They will replace two existing double hull tankers. All cargo and fuel compartments will be equipped with double hull protection. Both vessels will feature the latest in navigation and communications equipment. Main engine and auxiliary systems will be energy efficient and generate lower air emissions than what is required by current regulatory standards.
• Business/Finance news:
- Greenpeace U.S.A. has issued a report saying that all of the research funding received since 2003 by Willie Soon, an astrophysicist who has been a critic of climate science, came from oil or coal interests like ExxonMobil and the Southern Company, a utility that burns coal. Dr. Soon, who works at the Harvard-Smithsonian Center for Astrophysics, has researched whether solar variance might be responsible for climate warming. He earned notoriety among climatologists when he attacked Michael Mann’s so-called “hockey stick” graph of warming temperatures in 2003 and when he wrote that polar bears were not threatened by a decline in Arctic ice in 2007. Dr. Soon did not reply to e-mail messages or return messages left with his employer seeking comment. Charles Alcock, director of the astrophysics center, acknowledged that Dr. Soon’s grants since 2003 had come from fossil-fuel energy companies or from foundations that receive money from the fossil fuel industry. He said that Dr. Soon’s grants were not typical for his staff and that it was a “concern” but nonetheless acceptable, because the money came with no conditions and the grant sources were disclosed when Dr. Soon’s work was published. What may be more intriguing about the Greenpeace report is a tangential finding: according to Greenpeace’s research director, Kert Davies, ExxonMobil has sharply reduced its funding for groups that dispute that global warming is under way. Greenpeace used a Freedom of Information Act Request to obtain extensive records and e-mails from the Smithsonian regarding Dr. Soon’s research funding. It discovered, for example, a $55,000 grant from ExxonMobil in 2007-8 for research on “Arctic climate change.” For more than a decade now, climate scientists and their allies have linked Exxon money to groups that promote skepticism of the science underlying global warming. The links brought Exxon some negative press. Then in 2008, the company promised shareholders it would stop financing groups that had become a “distraction.” Many climate groups wondered if it would follow through. But recent evidence indicates that it has to a significant extent. Alan Jeffers, an ExxonMobil spokesperson, says the company and its foundation are no longer disbursing grants to Dr. Soon, for example. Greenpeace said that Exxon’s most recent annual worldwide giving report confirmed that it was not financing Dr. Soon. Numerous other groups that are critics of climate science and longtime Exxon beneficiaries — the Frontiers of Freedom and the Committee for a Constructive Tomorrow, for example — have also been dropped, according to that report. In total, Greenpeace found Exxon has reduced its donations to such groups from a peak of $3.4 million in 2005 to less than $800,000 for 2010.
- Indonesian villagers who accused security forces employed by the Exxon Mobil Corporation of murder, torture and other atrocities have regained their right to sue the giant oil company in the United States. A federal appeals court said that companies were not immune from liability under a 1789 law known as the Alien Tort Statute for “heinous conduct” committed by their agents in violation of human rights norms. The 15 villagers contended in their lawsuit that family members were killed and that others were “beaten, burned, shocked with cattle prods, kicked and subjected to other forms of brutality and cruelty” amounting to torture in Indonesia’s Aceh province between 1999 and 2001, a period of civil unrest. A divided panel of the United States Court of Appeals for the District of Columbia said Exxon Mobil should be forced to defend against such charges and sent the case back to the trial court. Given that laws in civilized nations hold corporations responsible for lesser wrongs, “it would create a bizarre anomaly to immunize corporations from liability for the conduct of their agents in lawsuits brought for shockingly egregious violations of universally recognized principles of international law,” Judge Judith Rogers wrote for a 2-1 majority. The decision reversed part of a ruling by the United States District Court in Washington. It is also at odds with a landmark ruling last September by the Court of Appeals for the Second District in New York, raising the prospect that the case will reach the Supreme Court. Exxon Mobil, based in Irving, Tex., said it was reviewing the decision, calling the plaintiffs’ claims “baseless.”
- As part of its continued effort to combat the devastating impact of malaria on populations in sub-Saharan Africa, the ExxonMobil Foundation announced a donation of $500,000 to establish a malaria diagnostic laboratory for the HopeXchange Medical Center at its health facility in Kumasi, Ghana. ExxonMobil’s contribution will provide HopeXchange, an institution dedicated to malaria prevention and treatment, with resources to improve malaria diagnosis. The center will also serve as a site for clinical trials of anti-malarial drugs using internationally recognized best clinical practices.
- ExxonMobil will release its second quarter 2011 earnings on Thursday, July 28. A news release will be issued over Business Wire.
- EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED: ExxonMobil recorded strong results during the second quarter of 2011, while investing at a record level of over $10 billion to develop new supplies of energy to meet growing world demand. Second quarter earnings of $10.7 billion were up 41% from the second quarter of 2010, reflecting higher crude oil and natural gas realizations, improved Downstream results and continued strength in Chemicals. First half 2011 earnings of $21.3 billion increased 54% over the first half of 2010. In the second quarter, capital and exploration expenditures were a record $10.3 billion, up 58% from the second quarter of 2010. Oil-equivalent production increased by 10% over the second quarter of 2010, driven by our world-class assets in Qatar and our growing unconventional gas portfolio. The Corporation returned over $7 billion to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding.
- Exxon Mobil and Royal Dutch Shell reported large increases in second-quarter profits, benefiting from oil and gasoline prices that have been propelled upward by political turbulence in the Middle East and North Africa. It was the strongest quarter for Exxon since it set a corporate quarterly earnings record in 2008, when crude oil prices approached $150 a barrel before collapsing as the world economy slowed. Exxon, the biggest American oil company, reported earnings of $10.7 billion for the quarter, up from $7.56 billion the year before, but a bit less than Wall Street had been expecting. Shell, the largest European oil company, posted profits of $8.7 billion, up from $4.4 billion a year ago. The results of Exxon and Shell, as well as ConocoPhillips and BP earlier in the week, highlighted the oil majors’ dependence on high oil prices for profit growth at a time when they are straining to pick up new reserves to increase or even sustain future production. Major oil companies are finding it difficult to acquire new reserves because countries rich in oil and gas have become increasingly grudging in their dealings with foreign companies, striking production-sharing agreements that offer them a smaller share of the profits. That is prompting oil companies to drill deeper below the ocean’s surface and explore in the Arctic for oil — expensive propositions that put pressure on profits — or drill for less profitable gas. Smaller oil and gas companies like EOG Resources and Cabot Oil and Gas have proved to be more nimble than the giants in recent years, moving into shale oil and gas fields in the United States and booking new reserves at a far faster rate. The major companies have tried to follow suit over the last two years, but a glut of natural gas from rising production has weakened the profitability of some fields. Growth in oil company profits for the rest of the year is uncertain, given that oil and gas prices are strongly tied to the health of the global economy. Demand in the United States for diesel, gasoline and other petroleum products has eased in recent months after starting the year strongly, and the growth in Chinese oil demand has slowed somewhat. The Energy Department reported that United States oil demand in May fell by nearly 2.5 percent from the same month the year before, representing a decline of 464,000 barrels a day. The department also reported that oil inventories last week were up by 2.3 million barrels from the week before, suggesting a less-than-robust summer driving season. Oil prices have eased more than 10 percent since the spring, when crude prices peaked because of the loss of 1.3 million barrels of oil a day of production caused by the turmoil in Libya and fears that instability could spread to major producers like Saudi Arabia and Algeria. Since then, increased production in Saudi Arabia and the release of oil from strategic reserves in the United States and other industrialized countries have helped prevent shortages. Even if oil demand and prices increase, large oil companies will strain to keep up production. ConocoPhillips reported a 90,000-barrel-a-day decline in oil and gas production for the quarter, though earnings were higher anyway as a result of higher oil prices. Shell also reported a decline of 100,000 barrels of daily oil and gas production for the quarter, in part because of permitting delays in the Gulf of Mexico after the BP accident last year. Exxon’s earnings were lower than analysts had expected despite strong revenue growth, reflecting a record $10.3 billion in capital and exploration expenditures in new oil and gas projects, up 58 percent from the second quarter of 2010. Exxon’s purchase of XTO Energy last year to become the nation’s biggest natural gas producer has been questioned by some investors in light of low gas prices, but the acquisition helped Exxon’s oil and gas production to increase by 10 percent from a year ago. Exxon is continuing to invest heavily in natural gas, purchasing 317,000 acres for $1.7 billion in Pennsylvania’s Marcellus shale field in June. It is also drilling deep in the Gulf of Mexico, and last month announced the discovery of a new deepwater field holding the equivalent of 700 million barrels of oil. Edward Westlake, an analyst at Credit Suisse, said Exxon profits were hurt by the shutdown in production in several oil fields and refineries around the world for maintenance reasons. He said he was optimistic about the company’s prospects because of an increase of annual capital expenditures from $21 billion in 2007 to around $35 billion currently, along with its aggressive acquisition of oil and gas acreage. While Exxon has tried to buy reserves, Shell has invested heavily over the last decade in complex projects, particularly in the Persian Gulf state of Qatar. Its $20 billion Pearl project, which will produce liquid fuels out of natural gas on an enormous scale, has been going through final tests this year and should begin to produce profits in coming months.
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- Exxon Mobil Corporation (NYSE:XOM) said that the development of the Indonesian Banyu Urip field in the Cepu block in East Java has achieved a major milestone with the award of the first of five engineering, procurement and construction contracts for work on major facilities at the development. ExxonMobil’s Mobil Cepu Ltd. (MCL) is operator of the Cepu block with 45 percent interest. The other co-venturers are Pertamina with 45 percent interest and four local government companies holding the remaining 10 percent interest.
- Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world, and commence technology and expertise sharing activities. The agreement, signed by Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas globally, with high potential for liquids and gas. The agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil’s exploration opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA), as well as additional opportunities in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in Western Siberia. The companies will create an Arctic Research and Design Center for Offshore Developments in St. Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and ice-class drilling platforms, as well as other Rosneft projects.
- Exxon Mobil won a coveted prize in the global petroleum industry with an agreement to explore for oil in a Russian portion of the Arctic Ocean that is being opened for drilling even as Alaskan waters remain mostly off limits. The agreement seemed to supersede a similar but failed deal that Russia’s state oil company, Rosneft, reached with the British oil giant BP this year — with a few striking differences. Where BP had planned to swap stock, Exxon, which is based in Texas, agreed to give Rosneft assets elsewhere in the world, including some that Exxon owns in the deepwater zones of the Gulf of Mexico and on land in Texas. In announcing the arrangement at a surprise signing in the Russian resort town of Sochi, Prime Minister Vladimir V. Putin described a sweeping global alliance — and a potentially vast investment by Exxon in the Russian Arctic. But while Russian news agencies said Mr. Putin had stated the potential investments by both companies to be as high as $500 billion, Exxon officials said the figures, at least initially, would more likely be in the tens of billions of dollars. For Exxon, which is America’s largest company and is a spinoff of the original Standard Oil, the deal means wading deeper into Russia’s risky business environment. As a result of the agreement, which is almost certain to require a review in Washington, more of the company’s investments and future earnings will partly hinge on policies set in the Kremlin. Russia has reneged on deals with Western oil companies before. In 2006, for example, it compelled Royal Dutch Shell to sell 50 percent of a Sakhalin offshore development to Gazprom, a state company — after Shell spent a decade and more than $20 billion of its own money and that of other investors to build the project’s infrastructure. Until now, Exxon’s principal investment in Russia has been a production sharing agreement on Sakhalin Island, on Russia’s eastern coast. That arrangement, which waives local taxes and provides the Russian government a share of the oil produced, is regarded as less risky than the deal made. Under the new agreement, the state-owned Rosneft could become a part-owner of drilling operations in the United States. Those operations could include two of the industry’s most contentious oil extraction methods — drilling for oil in the deep waters of the Gulf of Mexico and using the so-called hydraulic fracturing, or fracking, technique on land. The Russians want to learn about both types of drilling for use at home. The Rosneft deal would also be among the most significant attempts by a company from a country that is not an American ally to acquire United States oil fields since Cnooc, the large Chinese oil company, tried to buy the California oil company Unocal. Although it was not formally banned, that deal fell apart in 2005 after members of Congress criticized the potential Chinese ownership of American oil assets. Having an American company win the Rosneft deal could also suggest that the Obama administration’s policy of détente toward Russia, known as the reset, can benefit United States businesses, said Cliff Kupchan, a senior analyst at the Eurasia Group, a consultancy. The Exxon-Rosneft deal, if completed, would further a long-held goal of the Russian petroleum industry to diversify internationally. It would allow Russia to do that by using access to reserves at home to gain the necessary capital and technological expertise. Russia’s economy is dependent on petroleum for about 60 percent of its export revenue. Policies here are also important for world oil supplies, as Russia now pumps more oil than Saudi Arabia. Yet Russia’s onshore fields in Siberia are in decline, threatening the prosperity and geopolitical clout that has come with oil wealth in the last decade. Despite the varying accounts of the overall potential value of the agreement, a fact sheet released by the companies indicated an initial commitment to invest $3.2 billion in exploration in the Kara Sea, the body of water between the northern coast of European Russia and the Novaya Zemlya island chain. Once seen as a useless, ice-clogged backwater, the Kara Sea now has the attention of oil companies. That is partly because the sea ice is apparently receding — possibly a result of global warming — which would ease exploration and drilling.
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- ExxonMobil Research and Engineering Company (EMRE) and Honeywell’s UOP have formed a joint marketing and licensing alliance to deliver a comprehensive suite of lube and advanced fuels hydroprocessing and engineering capabilities to companies in the refining sector. The effort aligns EMRE's hydroprocessing technology for producing base oils for use in motor oil with UOP’s hydroprocessing solutions that produce high-quality feedstocks, resulting in high yields of premium quality lubricants. The alliance will also offer EMRE's fuels dewaxing technologies which, used in conjunction with UOP hydroprocessing solutions, produce high yields of ultra-low sulfur diesel with excellent cetane and low temperature flow properties.
- Exxon Mobil Corporation (NYSE: XOM) and Nippon Steel Corporation announced that ExxonMobil has granted Nippon Steel the world’s first license for patented field welding technology used to construct high-pressure pipelines made with X120 ultra high-strength steel linepipe. ExxonMobil pursued a comprehensive X120 development program to ensure that field welding technology would meet X120 strength requirements and be compatible with conventional pipeline construction practices. The X120 welding technology uses the pulsed gas metal arc welding process (PGMAW) with a proprietary solid welding wire and argon-based shielding gas to achieve high-strength welds with high toughness. Welding is performed using standard automated and semi-automated welding tools familiar to pipeline industry welders. The technology now licensed by ExxonMobil to Nippon Steel also includes the right to manufacture the proprietary welding wire. The signing of the license agreement makes Nippon Steel the world’s first and sole pipe manufacturer having available both a mill to manufacture X120 linepipe and ExxonMobil welding technology for pipeline construction.
- ExxonMobil affiliates and San Miguel Corporation (SMC) have reached agreements for the sale of ExxonMobil’s interest in three businesses operating in the Malaysian Downstream petroleum sector. The agreements includes ExxonMobil’s 65% stake in the publicly traded company Esso Malaysia Berhad (EMB), which operates the Port Dickson refinery, as well as its wholly-owned ExxonMobil Malaysia Sdn Bhd (EMMSB) and ExxonMobil Borneo Sdn Bhd (EMBSB) affiliates which are involved in the retail, industrial and wholesale and aviation fuels businesses. These refining, distribution and fuels marketing businesses will continue to operate as they do today under the new shareholder.
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- ExxonMobil Upstream Research Company (URC) announced the licensing of its award-winning Multi-Zone Stimulation Technology (MZSTSM) well treatment process to Canada-based Trican Well Service Ltd. (Trican) for use in Canada and the United States. The MZST process can be used to rapidly and reliably stimulate multiple zones in a single operation, yielding improved well economics. The MZST process can be particularly beneficial for hydraulic fracturing operations in tight gas, shale gas and coal bed methane wells that target multiple reservoir zones, thick reservoir sections, or long reservoir intervals where multiple stimulation treatments are required. The MZST process will enable Trican to optimize its stimulation operations by combining the deployment of perforating and hydraulic fracturing equipment simultaneously in the wellbore to enable "single-trip" multi-zone stimulations. The technology dramatically increases the number of zones that can be fractured per day compared to conventional fracturing and stimulation operations.
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- Exxon Mobil Corporation’s U.S. marine affiliate, SeaRiver Maritime, Inc., signed an agreement with Aker Philadelphia Shipyard for the construction of two new Liberty Class tankers valued at $400 million, which will create more than 1,000 direct jobs. The double hull vessels will be used to transport Alaska North Slope crude oil to U.S. West Coast destinations and will be built to include the latest navigation and communications equipment and exceed current environmental and energy efficiency standards.
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- Exxon Mobil, welcome to the world of the “masky show.” A day after Exxon, the American oil giant, struck a strategic alliance with Russia’s state-owned oil company, police agents in Moscow staged a vivid reminder of what can happen to foreign petroleum partners that get on bad terms with the government. Commandos armed with assault rifles raided the offices of the British oil company BP, in one of the ritual armed searches of white-collar premises that are common enough here to have a nickname: masky shows (so-called because of the balaclavas the agents often wear, although this time they reportedly burst in bare-faced.) Whether the Russians intended to send a signal or not, the episode seemed to serve notice to Exxon that, when it comes to dealing with the state-run business world of Prime Minister Vladimir V. Putin, Exxon isn’t in Texas anymore. BP, during its long involvement in Russia, has had so many police run-ins that its stock price often nudges up or down in response to raids or the arrests of employees. Russian oil and natural gas accounts for about a quarter of BP’s output — about the same portion as from the company’s fields in Alaska and the Gulf of Mexico. Until now, Exxon’s involvement in Russia has not been as extensive as BP’s. But that could change, based on the joint venture deal Exxon signed Tuesday with the state company Rosneft to explore for oil in the Russian sector of the Arctic Ocean and in the Black Sea. Rosneft, in turn, is to gain access to Exxon operations, including oil fields in Texas and the Gulf of Mexico. Partner beware was the watchword in a note to clients by the Eurasia Group, another risk analysis organization. The BP raid stemmed from a lawsuit filed by minority shareholders of the company’s Russian joint venture TNK-BP. They contend BP damaged their stock’s value by entering into a deal earlier this year with Rosneft that unraveled after opposition by the main Russian partners in TNK-BP. That debacle was an embarrassment to Prime Minister Putin, who had originally blessed the BP-Rosneft deal. An arbitration court, a type of Russian civil court, in the Siberian city of Tyumen authorized the search of the Moscow offices, according to both BP and a lawyer for the minority shareholders. The target of the search was apparently documents subpoenaed in the lawsuit, which BP had balked at surrendering, according to Vladimir Buyanov, a BP spokesman. The agents who raided BP’s offices on the 17th and 18th floors of the Lotte Plaza, a high-rise on Moscow’s Garden Ring, wore commando-style uniforms with yellow shoulder patches saying “Special Forces,” according to BP employees. The agents were escorting two investigators from the Russian federal bailiff service, who were not armed. The police ushered employees out, and began rifling through papers. Despite the assault rifles, “there was no great panic,” one BP employee said. “I was able to come up and get my keys” even after the armed men arrived. The employee, who insisted on anonymity, described the armed police as polite and not overtly intimidating. “They were just a group of comrades with the badges of special forces, in black outfits, with assault rifles — nothing extraordinary.” One policeman “slightly” pushed an employee with the butt of a rifle, to encourage him to get out of his chair faster, according to two employees who were present. It is not the first time BP has been the star of a masky show. In 2008, the Federal Security Service, a successor agency to the K.G.B., arrested an employee in the headquarters of the TNK-BP venture, just up Arbat Street from the BP offices, on charges of industrial espionage that were later dropped. That same year, labor and immigration authorities stripped visas and work permits from BP’s expatriate executives — including Robert Dudley, who was then the director of TNK-BP and is now BP’s chief executive. Mr. Dudley was compelled to leave Russia and run TNK-BP from an undisclosed location. Whatever the legal issues, and the relative merits, foreign businessmen in Moscow have for years implored the government to refrain from conducting such raids in white-collar cases. Their protests have had little effect. In February, masked and armed law enforcement agents raided Deutsche Bank’s main office in Moscow, looking for documents related to a commercial mortgage. In November, masked police officers armed with automatic weapons raided a bank belonging to the billionaire Aleksandr Y. Lebedev, a part owner of the national airline Aeroflot.
- The Dream Tour presented by ExxonMobil and featuring former astronaut Dr. Bernard Harris is in the midst of its first international stops in Angola, Nigeria and South Africa. During a 12-day visit to Africa, students will hear from Dr. Harris, the first African-American to walk in space, as he delivers his personal message to motivate the next generation of Africans. The program is underwritten by the ExxonMobil Foundation and encourages students to realize their dreams and reinforces the importance of studying science, technology, engineering and math (STEM). Tour stops include Lagos, Nigeria; Luanda, Angola; and Johannesburg, South Africa. Dr. Harris is speaking to public school students in secondary grades as well as girls at the Oprah Winfrey Leadership Academy in Johannesburg. Dr. Harris will also meet with community leaders, educators and key policy makers to discuss the need for strong STEM initiatives and the positive effects they have on their communities.
- The ExxonMobil Foundation announced a $1.5 million grant for research into how mobile phone technology can enhance women’s economic opportunities and entrepreneurship in the developing world. The grant to the Cherie Blair Foundation for Women will be highlighted at the 2011 Clinton Global Initiative Annual Meeting. The study, to be conducted in Nigeria, the United Arab Emirates (UAE) and Indonesia, aims to identify various mobile services that can help women entrepreneurs enhance their businesses, and what barriers exist to expanding access to these services.
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- A senior executive from Exxon Mobil warned that Europe could miss a chance to reduce its dependence on imported energy by making it too difficult to develop shale gas and so-called unconventional resources. The executive, Andrew P. Swiger, a senior vice president at Exxon, said that the conventional gas fields currently supplying Europe were expected to decline, raising dependence on imports delivered through pipelines and as liquefied natural gas. One of the main obstacles to drilling for gas trapped in fine-grained shale rock is the growing public skepticism about the environmental impact of “fracking,” using pressurized water, sand and chemicals to release the gas. Mr. Swiger’s remarks came after a decision this summer by the French Parliament to revoke permits from companies using the method. Since then, health and environmental activists have stepped up efforts to extend similar restrictions across the European Union. Europe is far from united against gas fracking. Poland and Bulgaria are among the countries enthusiastically developing shale gas, partly as a counterweight to mounting anxiety about depending on Russia for natural gas. Mr. Swiger said fracking could be done safely and cleanly, and he said local regulators should be permitted to decide whether to permit the technique in their communities. He said Europe’s shale resources, although different in some ways from the resources in North America, “may prove to be significant,” partly because of rapidly evolving drilling and extraction techniques. Since 2008, Exxon has drilled a number of exploratory wells in Germany for shale gas and for coal-bed methane, which is found in coal seams or in the surrounding rock, Exxon officials said. The company is still analyzing those results to establish their commercial potential, the officials said. Other experts who spoke at the conference said geologists needed to do more work to determine whether shale gas could be produced in Europe.
- ExxonMobil will release its third quarter 2011 earnings on Thursday, October 27. A news release will be issued over Business Wire.
- The Board of Directors of Exxon Mobil Corporation (NYSE:XOM) declared a cash dividend of 47 cents per share on the Common Stock, payable on December 9, 2011 to shareholders of record of Common Stock at the close of business on November 10, 2011. This fourth quarter dividend is at the same level as the dividend paid in the third quarter of 2011.
- EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED: ExxonMobil’s results for the third quarter of 2011 reflect a continued commitment to operational integrity, disciplined investing and superior project execution. Third quarter earnings of $10.3 billion were up 41% from the third quarter of 2010, reflecting higher crude oil and natural gas realizations and improved refining margins. Earnings for the first nine months of 2011 were $31.7 billion, up 49% over the first nine months of 2010. In the third quarter, capital and exploration expenditures were $8.6 billion, and reached a record level of $26.7 billion for the first nine months of the year as we continue pursuing new opportunities to meet growing energy demand while supporting economic growth, including job creation. Oil-equivalent production decreased 4% compared to the third quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was in line with 2010. The Corporation distributed over $7 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding.
- Exxon Mobil and Royal Dutch Shell reported robust profits for the third quarter based on higher oil prices and better refining margins. Earnings for the oil industry have been strong all week, especially for service companies like National Oilwell Varco and Weatherford International, which have benefited from rapidly growing drilling operations in shale oil and gas fields around the United States and a resumption of drilling in the Gulf of Mexico. Exxon Mobil, the largest American oil company and an active driller in new shale fields in the United States, Europe and Argentina, said its capital and exploration expenditures of $26.7 billion for the first nine months of the year represented a record. Still, natural gas production was flat and oil production was moderately lower in the latest quarter, disappointing Wall Street analysts. The rise in oil prices over the last year has spurred the drilling activity, but it may be difficult for oil companies to sustain the earnings momentum since they will face stiffer earnings comparisons in the fourth quarter and into 2012. Also, natural gas prices have been weakening. Oil prices began a steady climb at the end of last year because of expectations that the global economy was recovering and sudden fears of supply shortages as political turmoil began spreading across North Africa and the Middle East. The Brent oil benchmark price jumped nearly 50 percent in the July through September period, compared with the year before, but oil prices have eased a bit in recent months. Many energy experts say oil prices can remain at current high levels, but only if Europe averts a financial collapse; the United States avoids another recession; and China, India and other developing countries continue to grow strongly. A MasterCard SpendingPulse survey showed that demand for gasoline in the United States declined by 2.8 percent for the week ending Oct. 21, compared with a year ago. Demand in Europe has also eased, although it has been more resilient in developing countries. Supplies are also uncertain, and they remain tight. The turmoil in Libya took 1.3 million barrels a day of high-quality crude off world markets earlier in the year. Exports are flowing again but at much reduced rates. Meanwhile violence in Nigeria has put production there in doubt. Exxon Mobil reported that its net income rose to $10.33 billion in the three months through September, from $7.35 billion a year earlier. But analysts were not impressed. “Production volumes and chemical earnings are tracking below our full-year estimates,” Allen Good, a Morningstar analyst, wrote in a note. Net income at Shell, the biggest oil company in Europe, rose to $6.98 billion in the quarter from $3.46 billion in the same period a year earlier. Shares of Exxon closed at $81.88 up 1 percent.
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- Exxon Mobil predicts it will pay $135 million for the cleanup of the Silvertip pipeline spill in the Yellowstone River in Montana, nearly three times its original estimate. The company is now removing parts of the damaged pipeline to analyze what caused the leak.
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- Exxon and Mobil retailers are spreading the joy this holiday season by giving customers an opportunity "to give" and "to receive.” From November 1 through December 31, customers who purchase $100 in ExxonMobil gift cards at any Exxon or Mobil station and register those cards online will receive a free $10 ExxonMobil Gift Card. Customers may earn up to two free gift cards per household. According to industry reports, gift cards have been the most requested holiday gift for the past four years. Exxon and Mobil were among the first retailers to introduce gift cards back in the 1990s.
- Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), has been named the 2011 recipient of the Global Leadership Award by the United Nations Foundation. The award, presented at a ceremony in New York on Tuesday, recognizes ExxonMobil’s efforts to meet the United Nations’ goal of substantially reducing deaths from malaria through the ExxonMobil Malaria Initiative.
- Harold R. Cramer, vice president of Exxon Mobil Corporation (NYSE:XOM) and president of ExxonMobil Fuels Marketing Company, has announced his intention to retire effective January 1, 2012, with more than 38 years of service.
- A deputy prime minister overseeing the oil industry has issued a sharp rebuke to the largest American oil company operating in Iraq, Exxon Mobil, over the company’s reported efforts to expand its oil holdings into the semiautonomous Kurdish region in the country’s north. The statement from the official, Hussein al-Shahristani, said the central government had cautioned Exxon against pursuing oil deals in Kurdistan, which the government says will remain illegal until long-awaited rules can be worked out to split revenues among Iraq’s fractious regions. Mr. Shahristani’s office issued the statement a day after The Financial Times reported that Exxon, based in Irving, Tex., and the United States’ largest petroleum company, had become the first major international oil operator to sign a contract in the Kurdistan region — a move the company has neither confirmed nor denied. If Exxon did indeed sign a deal in Kurdistan, it is wading into a central controversy that has dogged Iraq since the American invasion. Oil has long been the heart of Iraq’s wealth, and the invasion threw control of the rich reserves into question, exacerbating longstanding enmity between the Kurds and other Iraqis. Under President George W. Bush, the passage of an oil law to split revenues was considered a crucial benchmark to bring long-term peace to Iraq. Many smaller oil companies, including American ones like Marathon and Hunt of Texas, have signed contracts with the Kurdistan Regional Government. But the larger companies had held back to ensure they retain deals for fields in the south. Michael Klare, a professor at Hampshire College and an authority on the Iraqi oil industry, speculated that Exxon might be betting that Iraq would not make good on threats of punishment, recognizing that the company’s investment elsewhere in the country was crucial to its economic revival. Critics of the oil companies that went to Kurdistan after the overthrow of Saddam Hussein’s government say they are pursuing development in a manner that, far from contributing to stability through economic growth, has heightened ethnic tensions between Arabs and Kurds. Exxon’s spokesman, Alan T. Jeffers, said in an e-mail that the company would not comment on whether it had signed an oil deal in Kurdistan, or respond to the Iraqi deputy prime minister’s statement. The Kurdistan Regional Government also had no immediate statement, though its official Web site prominently posted, without clarification, the text of The Financial Times article. For now at least, the Iraqi government appears to be taking a strong, but somewhat vague, stance. “The Iraqi government will deal with any company that violates the law the same way it dealt with similar companies before,” the deputy prime minister’s statement said. In the past, the government has excluded oil companies active in Kurdistan from new auctions elsewhere in Iraq. It was unclear whether the statement implied any threat to revoke Exxon’s existing contracts, which would be significant. A spokesman for Mr. Shahristani declined to elaborate. The actual legal argument against any deal remains a matter of controversy. Iraq’s Constitution allows regions to strike their own oil deals, but the central government says there is no current law spelling out how that can happen. Beyond the ripples that oil deals send through Iraq’s fragile politics, they are important for bringing new oil to world markets — but only if the relations between companies and the government go smoothly enough to allow investment. The State Department and the military have sought to tamp down antagonism between Kurdistan and the central government for years, and American troops have died trying to keep the peace along that internal border. With the American withdrawal imminent, concerns are mounting that ethnic tensions could again threaten stability. Under a 2009 contract, Exxon is leading a consortium developing one of Iraq’s largest oil fields, outside Basra near the Persian Gulf. Exxon and its partners agreed to invest $50 billion over seven years to increase output by about two million barrels of oil per day there, at West Qurna Phase 1, bringing more new oil to market than the United States currently produces in the Gulf of Mexico. Margins, though, are low. Kurdistan offers more lucrative production-sharing agreements, allowing the company to earn a larger share of revenues and to count more of the crude on its books, which helps boost stock prices.
- Employees of ExxonMobil’s Fairfax, Virginia campus raised more than $2.8 million for local community and charitable organizations in the Washington, D.C. metropolitan area during the 2011 Employees’ Favorite Charities Campaign. This amount establishes a new record for the campaign, eclipsing last year’s amount of $2.7 million. Since its inception in 2002, the campaign has raised nearly $21 million for charitable organizations in the Washington, D.C. area. This year, employees contributed to 555 charities with nearly half qualifying for ExxonMobil’s charitable matching program. As a result, 243 local non-profit organizations providing health and human services will receive contributions from the Exxon Mobil Corporation (NYSE:XOM) in addition to the individual contributions made by employees.
• Upstream news:
- Media are invited to participate in a conference call on ExxonMobil’s 2012 Outlook for Energy at 10 a.m. EST Thursday, December 8, 2011. Presenting the Outlook will be William Colton, vice president, Corporate Strategic Planning, and Kenneth Cohen, vice president, Public and Government Affairs. David Pumphrey, deputy director and senior fellow of the Energy and National Security Program at the Center for Strategic & International Studies, will moderate the session. The presentation will be followed by time for questions and discussion.
- Future growth in world energy demand is a cause for optimism because it will signal economic recovery and progress, Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), said. ExxonMobil is forecasting the global economy to more than double in size between 2010 and 2040, and during that time energy demand will grow by more than 30 percent. In order to meet that demand, the world needs to invest in and develop all economically competitive sources of energy. Projections of significant population growth combined with expanding trade, new technologies, and transformative economic opportunities will drive economic expansion and rising standards of living – particularly in the developing world, Tillerson said in a speech to the 20th World Petroleum Congress in Doha.
- Demand for energy will rise through 2040 as global economic output doubles and prosperity expands across a world where population will grow to nearly 9 billion people, Exxon Mobil Corporation (NYSE:XOM) states in its The Outlook for Energy: A View to 2040. Extending its annual long-term energy forecast to 2040 for the first time, ExxonMobil said this year's Outlook reveals several trends that will influence how the world uses energy over the coming decades. The Outlook projects that global energy demand in 2040 will be about 30 percent higher than it was in 2010, led by growth in developing regions such as China, India, Africa and other emerging economies. While oil will remain the most widely used fuel, overall energy demand will be reshaped by a continued shift toward less-carbon-intensive energy sources – such as natural gas – as well as steep improvements in energy efficiency in areas like transportation, where the expanded use of hybrid vehicles will help push average new-car fuel economy to nearly 50 miles per gallon by 2040.
• Downstream news:
- Exxon Mobil Corporation (NYSE: XOM) announced that the board of directors is anticipated to approve the consolidation of ExxonMobil Fuels Marketing Company and ExxonMobil Lubricants & Petroleum Specialties Company into ExxonMobil Fuels, Lubricants & Specialties Marketing Company, effective February 1, 2012. It is expected that the board of directors will appoint Mr. A. J. (Alan) Kelly, currently president, ExxonMobil Lubricants & Petroleum Specialties Company, as president of the consolidated company.
• Business/Finance news:
- An improved method of directly detecting oil and gas accumulations under thousands of feet of water and rock and an innovative and a highly successful campaign to increase the use of mosquito bed nets in malaria-endemic parts of Africa earned Exxon Mobil Corporation (NYSE:XOM) two Excellence Awards at the World Petroleum Congress in Doha, Qatar. The awards in Technological Development and Social Responsibility were presented by His Excellency Abdullah bin Hamad Al-Attiyah, Deputy Prime Minister and Chairman of the Administrative Control and Transparency Authority, and accepted by Rex W. Tillerson, Chairman and Chief Executive Officer of Exxon Mobil Corporation.
- Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), presented Presbyterian Night Shelter of Tarrant County with a $50,000 grant in support of the agency’s mission to provide shelter, security and services to homeless men, women and children.
- The turmoil in Iraq after the United States troop withdrawal is extending to its vital petroleum industry. The American oil giant Exxon Mobil and its partners are embroiled in a $50 million payment dispute with the Iraqi government over an oil field in southeastern Iraq that the companies are upgrading and modernizing. The Shiite-led government of Prime Minister Nuri Kamal al-Maliki is also unhappy with Exxon over a separate development deal the company has struck with the leaders of the semiautonomous Kurdistan region in northern Iraq. The Iraqi government’s failure to pay Exxon, the only American oil company operating in southern Iraq, for nearly two years of work underscores the perils for Western companies seeking to do business there. The government has not explained why it has withheld the payments. Any perception that the Iraqi government will not honor its oil contracts could also send ripples beyond Iraq to international markets worried about disruptions in petroleum supplies. Iraq is expected to ramp up oil production faster than any other country in the next 25 years, adding five million barrels of oil per day of capacity by 2035, more than traditional leaders like Saudi Arabia, according to the International Energy Agency. Exxon’s 2009 deal with the Iraqi government to improve production in the West Qurna 1 field was never expected to be lucrative under the best of circumstances. The government had agreed to pay Exxon and its partners $1.90 for each additional barrel of oil they pumped after refurbishing the already producing field. The fees would barely be enough to cover the companies’ costs. Other deals between Iraq and foreign oil companies had similar terms. International oil contracts are more typically structured to compensate companies with a percentage from sales or a share of production that takes into account the fluctuating price of oil, so that they can be more profitable for the companies when prices rise. Western oil companies, shut out of Iraq’s oil fields for decades under the government of Saddam Hussein, were willing to do the low-profit, technical service deals to get a foot in the door with the new government that was put in place after the American-led invasion in 2003. Only a few dozen of Iraq’s 80 or so discovered fields are in production, and the government has suggested that it would give more lucrative agreements later to companies that helped the country early on. For most of the nearly nine-year war, American government advisers aided Iraqi ministries in negotiating and fulfilling contracts. That tapered off as Iraq assumed more sovereignty. President Obama, in a meeting this month with Mr. Maliki in Washington, said Iraq was now a country “sovereign, self-reliant and democratic.” Exxon and its minority partners in the project — which include the Anglo-Dutch oil giant Shell — increased output in the West Qurna field by more than 10 percent by last March. That was the trigger point for the Iraqi government to begin paying the companies for their work. But the payments have not been made, according to Hans Nijkamp, Shell’s country manager for Iraq. He said Shell did not believe the delays were deliberate and that the issues would eventually be resolved. An Exxon Mobil spokesman declined to comment, saying the company has a policy of not discussing commercial matters.