Exxon reserves judgment on drilling in Russian Arctic


Exxon Mobil (NYSE:XOM) has been unflinching in its plan to drill for oil in the Russian Arctic, in spite of the rising tensions between the West and Russia, but comments after it reported Q2 earnings today seemed rather wobbly.

With XOM and Rosneft (OTC:RNFTF) set to drill the first well in the Kara Sea next month, XOM head of investor relations David Rosenthal said during the earnings call that it "wouldn't be appropriate" to comment until sanctions are assessed further; when asked directly if the company is still planning to begin drilling the first Kara well next month, he wouldn’t say.

With Q2 oil and natural gas output slipping 5.7% to 3.84M boe/day, the company's lowest since Q3 2009, XOM needs new production avenues.

Meanwhile, Shell (RDS.A, RDS.B) CEO Ben van Beurden said today it is monitoring the situation in Russia but that the company is keeping Arctic drilling on the table - in the U.S., marking a shift from his previous suggestions that Shell’s Arctic ambitions might not mesh with the company’s bid to prove its fiscal restraint.

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Comments (10)
  • Hank890
    , contributor
    Comments (2119) | Send Message
     
    XOM would be crazy to go forward with drilling in the Russian arctic at this point. They might as well just kiss their investment goodbye.
    31 Jul 2014, 07:39 PM Reply Like
  • P.Jakubovs
    , contributor
    Comments (12) | Send Message
     
    May be XOM should invest in... lets see... Lybia.. nop... Nigeria... nop... Middle East... nop... Almost everywhere where there is oil there is a lot of political, economical or security risks. Total, BP, Shell, Chineese companies (and thats just from the top) all are going forward with russian arctic drilling. Just look at EU sanctions, they didn't really ban the required technology.
    1 Aug 2014, 02:45 AM Reply Like
  • dostoevsky228
    , contributor
    Comments (321) | Send Message
     
    Given the continuing production declines....read the earnings Q & A...russia seems to be the mother lode for any future production growth. I mean are they going to put all their stake in Kashagan?
    31 Jul 2014, 09:08 PM Reply Like
  • King Rat
    , contributor
    Comments (1556) | Send Message
     
    Shell is very experienced with risk assessment and has run through contingencies for more scenarios for existing, non-existing, impossible, hypothetical events than we can imagine. Shell does not always get the best ROI, but their risk profile is tops in the fossil fuel industry. If their stance on Russian oil is opening up, I take that as a positive for the situation at large.
    31 Jul 2014, 11:33 PM Reply Like
  • xomstock
    , contributor
    Comments (439) | Send Message
     
    What did I read the other day? Russia is the largest producer of oil in the world. Ok

     

    I think Exxon is the largest oil company in the world. it is also one of or the largest company in the world.

     

    That oil will be there and has been there for a while it only makes sense for Exxon to go get it out of the ground.
    1 Aug 2014, 07:52 AM Reply Like
  • Bob Carl
    , contributor
    Comments (326) | Send Message
     
    Exxon Mobil (aka Standard Oil) has been around longer than Mr. Putin.
    1 Aug 2014, 11:53 AM Reply Like
  • fmhaynes11
    , contributor
    Comments (467) | Send Message
     
    And XOM will be along long after Mr. Putin and his predecessor and his and ...
    4 Aug 2014, 09:26 AM Reply Like
  • delano59
    , contributor
    Comments (194) | Send Message
     
    Mr Rex t no oil in the Kara sea drilling area. Remember john Delano tool you that no oil would be in the Destine dome?
    That was my letter to you and the total 12 sisters of oil, and that was in1974!
    It has been 40 years working on earth science and I am right about the Kara sea drill site.
    No oil!
    Call me Rex at 845 223 3687 or email me at sunnyday1@optonline.net.
    John Delano
    Review my comment on disquis under my name "originofquake."
    1 Aug 2014, 05:40 PM Reply Like
  • Larry Atkins
    , contributor
    Comments (8) | Send Message
     
    Exxon, and all of the oil and exploration companies tied to the XOP, for that matter, are in deep, deep trouble. There are Hydrogen based technologies coming online not in the next 10 years, or 2 years, but in the next 1 year.

     

    1. SHT: http://bit.ly/1kwulnt

     

    Solar Hydrogen Trends Inc. invented a Hydrogen Reactor. The technology provides multifactorial hydrogen reactor with elevated hydrogen production due to a set of sixteen (16) physical and chemical processes, acting simultaneously on the hydrogen bonds. The hydrogen reactor uses water as main fuel and its emissions are 100% clean (clean air).

     

    The technology is non-volatile and produces free flowing hydrogen which can be compressed or used to convert to another form of energy.

     

    The technology can be used as a free standing electrically powered device to produce unlimited amount of hydrogen at world’s cheapest rates or as a “bolt-on” hybrid solution.

     

    On input of 500 watts, the mini reactor produces an output of 2,797 cubic feet of hydrogen per hour (electricity equivalent 221.5 kWh), at cost of $1.80.

     

    Essentially, the equivalent cost of 1 barrel of oil would be $5.00. Big Oil has no chance at profiting from oil priced at $5/barrell.

     

    2. SunCell: http://bit.ly/1rsieY1

     

    "A very small quantity of highly conductive H2O-based solid fuel powder was loaded in to a hopper and gravity fed into the three-times faster auger, overhead of the rollers that were electrified with about 5V, 15,000A. The high current flow ignited the gravity fed fuel to produce 0.5 ms pulses of brilliant light having power and power densities of one million watts and 100 billion watts per liter, respectively. White light shows that the plasma is the same temperature as the Sun. The optical power can be converted to electricity using commercially available solar cells. "

     

    This technology is even more disruptive. While the first company simply produces Hydrogen which then must be converted to electricity, Blacklight's technology produces electricity directly at a cost of <$0.01 kWh. The fuel in this case is also water.

     

    Oil & Exploration is a doomed industry.

     

    - Larry Atkins
    3 Aug 2014, 04:37 PM Reply Like
  • fmhaynes11
    , contributor
    Comments (467) | Send Message
     
    Larry,

     

    1) you will be able to write this same note, although with different alternative energy companies and products, in a decade. All these other ideas lack scale!
    2) Do you think the XOM, CVX, etc. think tanks and long-term research groups are not working on this also? They have the largest and best funded research departments in the world, staffed by Ph.D. researchers that do not have to spend a percentage of their time teaching undergraduates or writing grants. They know all you do, and then some. When a new energy source becomes economic, they will be there to develop and implement it.
    4 Aug 2014, 09:31 AM Reply Like
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