EnergyFactor By ExxonMobil | Pespectives has a new home


All Posts from October, 2011

ExxonMobil announced estimated third quarter results today, and most news coverage is likely going to focus on the global quarterly earnings total of $10.3 billion. As I mentioned in my post yesterday, it’s also important to look beyond the bottom line of oil company earnings and consider how much a company’s operations and investments contribute to the economy in order to generate those earnings.

ExxonMobil is scheduled to report third-quarter earnings tomorrow, and earnings day usually attracts quite a bit of media attention and political comment. While the debate often centers on the numbers that show the size and profitability of the oil and gas industry, I’ve found there’s far less focus on what such numbers mean for the U.S. economy as a whole.

It’s quarterly earnings season for many energy companies, which means it’s also the season to be alert to those who will seek to misinform or mischaracterize our earnings for their own political purposes. So I thought I’d share with you what I think are some of the little known – or often ignored – facts about gas prices, the oil and gas industry, and ExxonMobil in particular.

This morning I had the opportunity to speak at the 3rd Marcellus Shale Gas Environmental Summit in Pittsburgh, where much of the discussion centered around shale gas development and job creation. The event offered yet another reminder of an unmistakable fact that many state lawmakers have grasped but some in the U.S. Congress and the media have yet to admit: The innovative combination of hydraulic fracturing and other drilling technologies pioneered by the U.S. oil and gas industry now enables us to tap an enormous domestic energy resource in a safe and environmentally responsible way.

The political pandering to the “Super Committee” on deficit reduction has kicked into high gear, and it’s not surprising that the U.S. oil and natural gas industry is first on the hit list for some seeking to score easy political points. Some members of both the House and Senate recently sent letters to the committee asking to eliminate what they’ve falsely labeled as “oil subsidies for the five largest, most profitable private oil companies in the world.” But such misinformation campaigns are only a symptom of a much larger and more disturbing problem: the short-sighted nature of proposed “solutions” for the U.S. deficit.

No doubt much of the discussion about shale gas production has been focused on the United States, especially on the positive economic benefits associated with the industry – a story just this weekend, for example, detailed how new college programs and training courses are preparing students for careers in the growing natural gas industry. But the shale gas story is increasingly global, as are the benefits.

  • Worth a deeper look...