https://finance.yahoo.com/news/sec-launches-probe-exxon-permian-162821651.html
9 replies (most recent on top)
Very common for engineering to be told what the answer needs to be and then have to make the numbers work. I’ve certainly been there multiple times. Rebaselining is an amazing thing. I always laugh when projects come in on time and under budget because when you get to change the answer as you go what other result can there be?
I wonder where 90% government conviction rate was two Wednesdays ago.
Kearl economics have been rigged ever since the white elephant's sputtering start-up. XTO Canada is a major bust, every one is well aware of that. Will we ever fully recognize an impairment???
Of course the SEC is correct. The Permian is money sink with no returns on investment for everyone there and has been for the last decade. The only reason we are there is to find something for XTO to do, since their natural gas holes are uneconomic and will be written down in 4Q to the tune if 10 -20 billion. Eventually we will need to do the same in the Permian. To add to the stupid purchase of XTO for 40 billion in 2008, we paid 6+ billion for Permian acreage over the last 5 years, built a half full crude oil terminal in Wink, TX and along with half dozen other companies were going to build a pipeline from Wink to Beaumont that is now on hold. More good money being spent on poor investments to recover methane that we mostly flare and oil that nobody can process on the Gulf Coast so it must be exported. The economics for the Permian are a total bust as OPEX and CAPEX were rigged by the Corporation. We all know how that works, just keep doing PowerPoint until Woods, the god pod and their managers get the right answer and off we go with XTO drilling on another poor investment decision. No doubt all the Permian lovers are still here and the truthful and honest Permian deniers are all terminated. Once crude rises and we go drilling again, the Russians and Saudis will produce more and down goes the Permian. Eventually, just like XTO gas fields was written off/down so will go the Permian. Does this story sound familiar, it should, same bad decisions were made on Kearl sands economics by the same people that are employed and running our company today.
Nope - the story doesn’t really amount to much. The worst case scenario is a few million dollars in fines. Shell went through something similar a few years ago and I’m pretty sure that most oil majors have experienced something similar in their past.
Heh Heh Heh.....EM has been arguing with the SEC over reserves classifications and values for well over a decade now. Well density, decline rates, drainage assumptions, etc. are all speculative. One expert says X, another says Y, and the only sure thing is that they are both wrong. And it's not up to employees to decide which assumptions are to be used. That's a management call. Nothing burger here. Sorry to disappoint the h*ters.
What government are you referring to? Local? Federal? Do you even know what you are talking about?
Lol! Blanket statement "Government" absolutely does not have 90% conviction rate.
Gov't has 90% conviction rate. Say "good-bye" to your pensions.
Not really