Thursday, November 30, 2006

Ex-Exxon CEO Says Those Who Have More, Have No Obligation

In direct contrast to the saying “From those who have much, more is expected”, ex-Exxon CEO Rex Tillerson said in reference to the repeal of tax breaks:

"I think the bigger concern I have is not so much the economic direct effect of the fact that they want to take a tax break off here or there. But it's the message it sends the rest of the world that you don't have to provide stable (regulatory) frameworks, and if that happens, none of us are going to be able to take the risk in this business."

What will Exxon do with all that cash, $37.3 billion now that it doesn’t want to take risks in “this business”? After stellar quarters and annual reports, Rex Tillerson offers his version of a threat to the newly elected Congress. Does he not recall President Bush’s recommendation that key parts of the Energy Bill be repealed this past spring?

"Record oil prices and large cash flows also mean that Congress has got to understand that these energy companies don't need unnecessary tax breaks like the write-offs of certain geological and geophysical expenditures."

Why isn’t $60 per barrel oil enough incentive to invest in new oil reserves? Especially as Rex said absent any technological breakthroughs, "Fossil fuels will remain the predominant energy source for the foreseeable future." Given near record profits of $10.49 billion in the third quarter, please remind me again Rex why Exxon needs a dime of my hard earned tax money?

And why does big oil need American foreign policy to intervene on their behalf? Our history of tampering in other countries for access to energy assets is long and clear. It appears Rex wants it to continue.

Update 12-10-16:  President elect Donald Trump named Exxon CEO Rex Tillerson as his Secretary of State.

No comments: