Seeking Alpha

Exxon's Tillerson: U.S. will be energy secure by 2020

  • The U.S. will be energy secure by the end of the decade, Exxon Mobil (XOM) CEO Rex Tillerson tells CNBC: "We're already the world's largest natural gas producer [and] last year crude oil production surpassed levels not seen since the 1980s."
  • According to Tillerson, China’s shale reserves likely are larger than those in the U.S. but are difficult to develop; most are buried much deeper than in North America, and many are in remote areas where there is little infrastructure to support their development.
  • XOM has partnered with a state oil firm to study to test shale potential in China, but Tillerson says it is in the early stages of evaluation.
Comments (9)
  • Michael Fitzsimmons
    , contributor
    Comments (9557) | Send Message
     
    Not only are China's share reserves deep and the terrain bad, but even if you can access the shale and produce the gas, the country doesn't have the natural gas pipeline system the US has. Nor the water. Water is a huge problem for China - I mean the country is re-routing two of the largest river systems on the planet (the Yangtze & Yellow rivers):

     

    http://seekingalpha.co...

     

    But China really needs the natural gas to cut down on pollution - and this is one reason I like Australian LNG producers like CVX & COP.

     

    Lastly, I would point out that one Chinese energy policymaker said if China had the natural gas production, reserves, and 2 million+ miles of nat gas pipeline infrastructure that connects every major city, adopting natural gas transportation would be a "no-brainer". Heck, they are doing it anyway despite 3-4x prices for imported LNG!
    10 Jan 2014, 06:49 PM Reply Like
  • Phenom1
    , contributor
    Comments (375) | Send Message
     
    Middle Eastern countries better start playing nicely with US & our allies over there. Once the spigot gets turned on, there will be no shutting it off. Kudos to Rex for showing the leadership and the vision befitting the world's largest non-national oil company.
    10 Jan 2014, 07:13 PM Reply Like
  • User 353732
    , contributor
    Comments (4998) | Send Message
     
    The capital and operating costs of shale wells in China will be twice that of Permian wells; drilling times may be months not days and given the proliferation of global opportunities the Majors will have little incentive to commit risk capital and talent to China in the absence of attractive terms.

     

    Substantial commercial production of shale gas and oil in China is at least 5 years away and national/energy  security not operating profits will be the driver.
    11 Jan 2014, 01:32 PM Reply Like
  • Jake2992
    , contributor
    Comments (831) | Send Message
     
    Presidents since Nixon have been promising to make us energy secure. I'm sure those with Obama Derangement Syndrome won't give him credit, but finally we have a President who actually made it happen.
    11 Jan 2014, 06:23 PM Reply Like
  • treyminator
    , contributor
    Comments (85) | Send Message
     
    Obama did NOT make the U.S. energy secure and you do not provide any facts to support your statement. Obama and his liberal cronies have wasted, yes - wasted, billions on "renewable" energy boondogles and thrown up road blocks and delay tactics to try and stymie the oil and natural gas industry and production in this country. Liberals fight fracking to produce oil and gas from shale formations; fight creation of new pipelines; delay granting natural gas export licences; try to take away or reduce tax incentives for oil and gas production; shutdown Gulf of Mexico oil drilling for extended period of time which was not necessary to address the Macondo disaster - even Democratic Govenor Shindle of Louisiana spoke out against Obama's complete shutdown on GOM drilling for such extended period of time; and Obama and the Liberals have done nothing to try and create the natural gas infrastructure to enable Americans to buy automobiles powered by nat gas, which is cheaper and cleaner than gasoline. The very suggestion Obama is responsible for the U.S. oil and gas renaissance suggests you.re a young misinformed adult. Go back to playing your video game in your room in your parents' home.
    11 Jan 2014, 10:45 PM Reply Like
  • Mercury Value
    , contributor
    Comments (565) | Send Message
     
    What particular piece of legislation did Obama enable that helps Exxon produce natural gas?
    12 Jan 2014, 02:24 AM Reply Like
  • DougRk
    , contributor
    Comments (1621) | Send Message
     
    Research the number of permits the Obama admin has allowed on federal land, then research the explosion of production on private land in the same time frame. Then come back and tell us how Obama has created this energy bonanza. Your head is so far up your ass!
    3 Feb 2014, 08:41 PM Reply Like
  • hneumann
    , contributor
    Comments (632) | Send Message
     
    " Middle Eastern countries better start playing nicely with US & our allies over there. Once the spigot gets turned on, there will be no shutting it off."

     

    Regarding 'tight crude oil' production you could take a look on peakoilbarrel.com. It might peak earlier than one could imagine. Existing wells decline rapidly after a relatively short period of time.
    11 Jan 2014, 08:54 PM Reply Like
  • Eudaimonia
    , contributor
    Comments (904) | Send Message
     
    ... the technology is simply only in the US now... eventually this will be done elsewhere in the world, this type of oil is not unique to the US/Canada........

     

    peak oil is a joke always has been, oil is a factor of price at $150 a barrel all deep sea drilling becomes profitable......

     

    It is true cheap easy to reach oil is depleting, so what?

     

    Considering the improvement of engines + the slow but gradual move to electric vehicles (you can use nuclear + solar + gas + coal + wind + hydro) none of which are even close to depleting, again peak oil is nothing.
    12 Jan 2014, 06:53 AM Reply Like
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