The One Company Most At Risk From Russian Sanctions Is Actually American

Tyler Durden's picture

When Exxon Mobil CEO Rex Tillerson detailed a $3.2 billion deal to drill for oil in Russia's Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia. However, as WSJ reports, Exxon has instead wound up in the cross hairs of U.S. foreign policy, which could threaten one of the company's best chances to find and tap significant — and much needed — amounts of crude oil. If the venture is significantly delayed or hampered, it would deal a blow to Exxon's efforts to replenish its store of fuels it pumps from the ground. The company's production has been essentially flat for years, and last quarter fell to the lowest level since 2009. More costs?



As WSJ reports,

The U.S. on Thursday announced new sanctions targeting Russia's financial, defense and energy sectors in a bid to punish the Kremlin for stoking the military conflict in Ukraine. Details of the sanctions, designed to match new measures imposed by the European Union, are set to be released Friday.


A U.S. official said the new penalties would affect Exxon's current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday.


No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas.




Exxon is "assessing the sanctions," said Alan Jeffers, a company spokesman. "It's our policy to comply with all laws."




If the venture is significantly delayed or hampered, it would deal a blow to Exxon's efforts to replenish its store of fuels it pumps from the ground. The company's production has been essentially flat for years, and last quarter fell to the lowest level since 2009.


Russia's Arctic is one of the few regions in the world that could hold enough oil and gas to boost Exxon's output.

We leave it Exxon Mobil's CEO to conclude...

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions."

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Bangin7GramRocks's picture

You just may have to make due with the blood money that you have extracted from the American people the past 10 years Rex. Fuck you asshole!

NoDecaf's picture

Jim Willie made an interesting observation. He said there could be some tension between the Rothschilds and the Rockefellers. The Rothschilds = banking and the Rockefellers = energy (Exxon)

Dapper Dan's picture

On Sept 11, 2001

The Military Industrial Complex (oil interests)

Attacked the Global Banking Complex (money printers)

Dapper made this observation years ago.

bag holder's picture

Good thing it's Exxon's policy to follow the law, because I don't remember Congress voting on these sanctions. Good luck getting those through any institution with even the barest shred of representation left.

The irony of 9/11, in this interpretation, is that the public is going to side with the oil interests against the money printers.

Freddie's picture

Don't the Rothschilds own BP?

Anyone remember a few months ago on ZH when David Rockefeller's son died piloting his own plane?   The son was a doctor who flew down from Maine to NY in his turbprop to have dinner with his 95+ or so father.   He crashed on takeoff.  He supposedly was a practicing doctor and probably a decent sort considering his old man is the devil. 

If you want to hurt a man like David Rockefeller what would you do?  He is so old that killing him would mean nothing.  If you kill his child then you really hurt him.  Probably the only child who would spend any time with him.   He may be the devil but we do not chose our parents and it is sad for his son.

All these accidents are not accidents.

teslaberry's picture

i remember that accident very well. 


sometimes, accidents are accidents. i'm nto going to comment on that specific accident, but it DID happen in a small propeller plane, which have a pretty notorious record as being dangerous, same as motorcycles are dangerous. 


that conspiracy doesn't smack of any motive other than amorphous revenge by anyone. yea, super powerful people do have enemies. and perhaps some of them are spiteful enough to go down the road of killing their kids. 


your kind of talk is the stuff that people who shit on 9/11 conspiracies use as an exmaple of how conspriacy theories often are pulled out of thin air. 


offer some evidence before you ellege these things. suspicion does not make for a story. 

22winmag's picture

The JFK Jr. nosedive was no accident.

Oldballplayer's picture

No. It was incompetence.

The guy should not have been where he was, doing what he was doing. He had no experience.

He was a fool.

nmewn's picture

"...“guess what this liberal would be all about? This liberal would be all about socializing — uh, uh, would be about basically taking over and the government running all of your companies.” - the brilliant and candid, Maxine Waters.

Obama Corporation just got a twofer!

q99x2's picture

Here come this years campaign contributions.

Rootin' for Putin's picture

Exxon Mobil to pull a burger king and move its HQ to another country in 3,2,1..

Harbanger's picture

We haven't yet hit full banana republic.  You'll know we've arrived when the toilet paper manufucturers leave the country.   Classic sign of social progress.

Never One Roach's picture

Soros is pissed prob b/c he just increased his holdings in Exxon I think...correct me if I'm wrong. Same with Buffet.

HardlyZero's picture

Exxon headed for Edinburgh?  That might rock some foundations and help develop more North Sea Oil.

Dapper Dan's picture

Exxon ain't moving, but look how they are painting the rooftops of their new complex in Texas.


If you can't see me, you can't drop bombs on me.

Tom Green Swedish's picture

No, but Rick "I pooed in space" Perry's Mexas might consider seceding from the USA if it hurts them bad enough.  They are probably contemplating it right now, while they are shitting in their pants and bitching about no border which they could have built themsleves with all their untaxed royal wealth from their so called black gold. We then can build a border around that shithole and seal it off then all the problems we face with illegals will be their fault thus prompting a war where we completely dump shit on them and take it back and fuck them in the ass like Russia is doing to Ukraine.

Newsboy's picture

"Illegals" are not a bug; they're a feature.

Here in Texas the heat-tolerant skilled manual labors from south of the border are the foundation of all public and private work, from roads, roofing and construction, to digging perfect ditches, to cooking and cleaning.

The talk of restrictions and so on is talk that "keeps them in line" and without rights.

they are generally the nicer folks you will meet, more courteous drivers, smile and acknowledge smiles on the street.

When the electric grid goes down, and the AC turns off, guess who will leave Texas, and who will stay.


AgeOfJefferson's picture

His "watered-down" statement may be accurate but unfortunately he, and 99.99% of CEOs have no balls to tell the government that their foreign policies have destroyed the economy and the dollar. They are too afraid of the consequences of speaking up. So, in the end, they will get what they deserve. Booo-hooo!

ShrNfr's picture

Obama does not care what happens to Americans, after all he isn't one.

Tom Green Swedish's picture

So you would rather "strengthen ties" with that Coldwar shithole who has been fucking us ever since we bailed their worthless asses out of WW1 and then decided communism was cool.  Not my cup of tea.  The russians are a bunch of drunk coward retards who got killed a dime a dozen by the Germans.  Hitler made a mistake declaring war on the USA but USA made a mistake by entering it.   Exxon's only motivation is their own profit and destruction of the world just like Butin.  Blow me.

Kirk2NCC1701's picture

It's in International Waters.  So... fair game to US Big Oil, tovarish.  /sarc

ebworthen's picture

"Collateral damage" never enters the calculus of the Bankster/M.I.C. controlled and utterly corrupt U.S. Government.

zhandax's picture

Until the PAC contribution gets rescinded....

vietnamvet's picture

cue joke about smashing head into a hand that's snatched away revealing a brick wall ...

Perimetr's picture


Barry says he is sorry.  So does Michael.  I mean Michelle.

intheshortrun's picture

Butin has check-mated the West and the Banksters on every move so far. It's not likely to change. My advice to the Banksters, read Einstein’s definition of insanity "Repeating something over and over again while expecting a different result. Let's see how Putin will respond to this round of sanctions. James, pour me a double because I think things are going to get interesting.

emersonreturn's picture

over the last few days we've had several interesting comments on what is really happening, and trying to explain why big oil (XOM, BP, Shell) are being targeted along with russia with these sanctions.  a few have suggested it's MIC.  and there is some logic to this.  it may be as winston often says, big dogs, rottenchildren duelling rockyfellers.  it's ugly.  and XOM should move to scotland, shanghi or texas should finally separate.  but you do not see putin gutting rosneft, putin is funding/backing rosneft.  china does the same.  merika eats its own.  saturn all over.

MasterOfTheMultiverse's picture

Exxon/Tillerson, Rosneft/Strauss Kahn, horny crooks all in it together. Now if ISIL/Al Qaeda/Al Nusra would succeed in methodically deleting crony capitalists instead of flying planes blindly into buildings and targeting innocent civilians they would actually gain some global support and make a real difference.

Tom Green Swedish's picture

DSK and Juncker are the eurotrash shit.

exartizo's picture

Yes. We here in the United States have gotten extraordinarily adept at "cutting off our noses despite our face."

messymerry's picture

**** OFF TOPIC ****

I know this is off topic, but I felt you all need to be aware of this:

The CBC is warning Canadians about a U.S. program where America law enforcement officers — from federal agents to state troopers right down to sheriffs in one-street backwaters — are operating a vast, co-ordinated scheme to grab as much of the public's cash as they can through seizure laws.

Protect yourselves and respond accordingly...

Tom Green Swedish's picture

Sounds like Mexico.  Fake cops stealing money.

SillySalesmanQuestion's picture

Crush the Rockefeller pigs! Slay the Rothchild Bankster monsters!

Seize Mars's picture

Easy, killer. Easy.
In the libertarian political philosophy nobody gets killed, you just laugh at them.

Tom Green Swedish's picture

Looks like somebody just robbed Big EXxon with a gun.   Big oil greed crap bubble destroying the earth by forcing a monopoly on energy while all the while "promoting alternate energy" which is total bullshit.  These fucking pigs put GM in the ground and the entire USA and possibly the world with their crap agenda. Have a nice day you cheap backstabbing pricks.  Oil Target 5 dollars a barrel.

ThisIsBob's picture

Pumping oil is so easy even a Chinaman could do it.

trader1's picture

good news actually.

we don't need to accelerate the suicide of our species (and others) by drilling for oil in the arctic.

basho's picture

filed under: shooting-your-foot-off


US, EU sanctions prompt Russia to set up its own oilfield services provider - minister

September 13, 5:01 UTC+4

"This will have a powerful synergetic effect for the engineering industry and high technologies," Natural Resources and Ecology Minister Sergey Donskoi said

"He added that in some statements by the biggest oilfield services company Schlumberger he heard regret, “which will be growing when its niche and the niches of other foreign partners will be taken up by Russian enterprises.”


Seize Mars's picture

The idea that Rex Tillerson is an outsider and all the geopolitical events just "happen to him" is pretty fucking funny. Then again I've got a weird sense of humor.

Downtoolong's picture

Agreed. But, most likely he wasn’t making this statement to educate and elnlighten the unwashed masses. He was probably aiming at those in Congress and other branches of gov’t who don’t have a clue what his lobbyists are really paying them to do.

Lord Koos's picture

It's really, really hard for me to feel sorry for Exxon-Mobil.

Joenobody12's picture

Seadrill, SDRL, dropped from 37 to 30 and change in a matter of 5 days. SDRL provides deep water rigs to E % P companies. It has the best rigs in the industry. Reportedly, some officials EU and US are angry at SDRL for having signed contracts with Rosnft to supply them with the rigs for the Rosneft /XOM joint venture . 

I lost a shit load of money on paper holding SDRL and options. My question is, what do I have anything to do with the prblem over in Ulraine. Why must small guys like me pay for the ambition of the fucking governments of US and its master in Israel ? Seems to me it is only fair for these government to compensate us investors if they are going to punish the Russians.