Exxon Mobil's Weapons of Gas Destruction

ExxonMobil has a loaded gun pointed at the U.S. natural-gas market -- and it isn't the only one.

The ammunition is liquefied natural gas. Exxon is scheduled to start up another three LNG projects in Qatar this year. They will produce more than three billion cubic feet a day of natural gas and freeze it for transportation. Europe and Asia are potential markets. But the U.S. could be a magnet for LNG cargoes, despite not really needing it, a paradox that spells low prices.

In Exxon's case, valuable liquids also produced in its Qatari projects take the market break-even price of the natural gas itself "towards zero," says Deutsche Bank analyst Paul Sankey. Factoring in processing and shipping costs, that gas can be landed in the U.S. for less than $2 per million British thermal units, reckons Noel Tomnay, head of global gas at Wood Mackenzie.

For the complete article:

http://rigzone.com/news/article.asp?a_id=77675&hmpn=1

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Permalink Reply by w.r. frank on June 28, 2009 at 10:36
If the Middle East had no oil, strategically it would rank right up there with Sudan as a foreign policy concern of the US. Unless, of course, we have a shortage of sand.
Permalink Reply by Spring Branch,mineral owner on June 28, 2009 at 14:48
Jim, what you said was, "Everyone fails to add the costs of American military involvement to the tune of $200B annually, to the cost of oil from the Mideast and elsewhere where the MAJORS ENJOY PROTECTION BUT PAY NO TAXES TO PAY FOR IT. I assume that Chevron would fit into the category as a "major" since it is in fact a major international oil as is Exxon; and you went on to say that the "majors".........read Exxon, Chevron, Conoco Phillips, etc..........enjoy protection but pay NO TAXES to pay for it (meaning protection)! PAY NO TAXES, Jim. My words or yours??? I simply contended that the majors do , in fact, pay taxes and a lot of them to a country that has one of the highest corporate tax rates in the world which you seem to think is not high enough at either the personal or corporate level. I happen to think it is plenty high enough if only "they" wouldn't piss off so much $$$$$$$$$$$. In this case, I assume you know who I mean by "they" and I'll gladly put George Bush and the Goofy Republicals right there with Obama, Pelosi, and Reed! Exxon is NOT the problem!
Permalink Reply by Spring Branch,mineral owner on June 28, 2009 at 15:21
Jim, when you use the words, "people like me" that doesn't sound too friendly. In fact, you'ver been rather unfriendly on several threads tonight. Been getting into that brown pretty good today, have you? You just kinda dare anybody to question your authority, don't you.? Kinda like what the President does. Did you get that from him?
Permalink Reply by John D Cook on June 28, 2009 at 15:33
Drill here not overseas, save our American jobs. Time to stand up to our liberals in this great nation, and revive the American dream that made this counrty what it is. Look at progress that has been made with the Haynesville and the Lower Cotton Valley. North Louisiana Proud Citizen!
Permalink Reply by BirdDawg, plain ole' idiot on June 28, 2009 at 15:46
I only wish this site would ban political discussions.
Permalink Reply by Spring Branch,mineral owner on June 28, 2009 at 15:56
And tomorrow I'll still think you are full of liberal crap. Get a good nights sleep. You sound like youi need it.
Permalink Reply by Pipeliner on June 30, 2009 at 7:40
En masse, Americans are unaware the House of Representatives passed the single largest tax increase in American history on June 26.

Disturbingly, pop culture’s tentacles have latched onto the American soul and have become a higher priority than the single largest tax increase in U.S. history. The Union-Tribune dedicated almost 800 percent more space on its front page on Saturday, June 27, to the death of Michael Jackson than it did to this new tax. The coincidental death of Jackson was a perfect cover for the single largest tax increase on Americans

Many of the con artists are Democrats in Washington who have already invested heavily into these companies, knowing they were about to spawn a new industry with new money making opportunities. The corruption in Washington is apparent, as politicians such as Rep. Nancy Pelosi have pre-invested into cap and trade companies.

If this was an existing private industry, this would be considered illegal trading. Pelosi would be investigated by the Securities and Exchange Commission for insider trading and using her influence to start the entire industry in the first place. Al Gore also stands to make hundred of millions with a carbon credit-tracking software company he started.

Higher gasoline prices translate into larger revenues and profits for the oil companies, which in turn convert into more taxes feeding Washington’s coiffeurs. While Exxon Mobile makes between 25 and 35 cents per gallon in profits, Washington D.C. makes approximately $1.40 per gallon in total taxes on gasoline when gas is at $3 per gallon. In 2007, the U.S. Government collected $40 billion in corporate tax from Exxon Mobile alone.

The Democrat-controlled U.S. government has found a new way to tax Americans. They have done so rather stealthily, using science that has not had enough debate. As with the TARP funds and the stimulus bill, Congress is moving at an unprecedented pace, taking advantage of Americans while we are still trying to catch our breath in this economy.

America, it’s time to realize what higher energy prices and the cap and trade bill truly are– trillions of dollars for the federal government, on the back of every American, rich or poor. It is nothing more and nothing less. Follow the money.

For the complete article:

http://www.sdnn.com/sandiego/2009-06-30/news/steve-hunyar-cap-and-t...
Permalink Reply by Pipeliner on June 30, 2009 at 9:02
Jim,

you are right. It was $30 billion in taxes.


This is an interesting aspect below:

for 2004, the most recent year available:

Total number of tax returns: 130 million

Number of Tax Returns for the Bottom 50%: 65 million

Adjusted Gross Income for the Bottom 50%: $922 billion

Total Income Tax Paid by the Bottom 50%: $27.4 billion


Conclusion: In other words, just one corporation (Exxon Mobil) pays as much in taxes ($27 billion) annually as the entire bottom 50% of individual taxpayers, which is 65,000,000 people! Further, the tax rate for the bottom 50% is only 3% of adjusted gross income ($27.4 billion / $922 billion), and the tax rate for Exxon was 41% in 2006 ($67.4 billion in taxable income, $27.9 billion in taxes).

For the complete article:

http://seekingalpha.com/article/63131-exxon-s-2007-tax-bill-30-billion

Looks like the bottom half of American taxpayers are getting a "free ride" on Exxon Mobil's coattails. If Exxon Mobil's did not exist, the 65 million taxpayers would have to pick up the slack in taxes

.As far as their overseas operations, every other US company is operating under the very same tax laws that Congress wrote, when operating in foreign countries.

Will Congress write new laws singling out one specific company to punish?

Oil companies are no different from other companies, if you overtax them and put too many regulations and restrictions in the country they are based in, they will go to countries where better opportunities exist.
Permalink Reply by Pipeliner on June 30, 2009 at 12:58
What criminal act has Exxon Mobil committed to warrant Congress passing a special income tax only for them?

The "crime" of being successful and looking after their shareholders?

The "crime" of not investing in "Renewable Energy" projects that other Big Oil companies are finding unprofitable, and will not stand on their on merits, but have to be heavily subsidized by the taxpayers?

Why don't we slap a "Windfall Profit Tax" only on Exxon Mobil? We all know how well that worked under Carter.

How many oil and gas projects has Iraq given Exxon Mobil? I thought the liberals and anti-war people said that was the only reason we invaded Iraq was to "steal their oil"? I thought they were to be handed contracts on silver platters.


Bagdad Bidding: Oil Companies Balk at Iraqi Oil Terms.


After a chaotic day of negotiations, it appears the effort to attract Western oil firms back into Iraq has been a failure. Not an unmitigated failure, but a failure nonetheless.

Associated Press

Bids were cast, but success was elusive.
Public, transparent auctions for eight oil and gas fields yielded only one successful bid – by a consortium led by BP PLC and including China National Petroleum Co.

For the complete article:

http://blogs.wsj.com/environmentalcapital/2009/06/30/baghdad-biddin...

Looks like our soldiers invaded for BP and China and are protecting BP and China. Where is the outrage?
Permalink Reply by Les Bamburg on June 30, 2009 at 15:27
Jim, last I checked there wasn't a lot of oil production in Afghanistan. So which American corporation is benefitting from that military action - maybe McDonald's & KFC.

Regarding Iraq, it is more likely oil service companies will be the primary beneficiaries and probably foreign owned ones at that.

Bottom line - military spending has little if any relationship to American oil and gas companies. It was just one of those urban myths.

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