Exxon's XTO Buy Is A Direct Affront To The Russians

vladimirputin serious tbi

We’ll keep bringing you perspectives on the Exxon/XTO deal as we come across them.

We particularly like this from Bill Holland at Platt’s:

While ExxonMobil’s announcement that it’s buying Fort Worth’s XTO Energy for $31 billion and $10 billion in debt is a rousing cheer for US shale producers, the real stimulus has been Russia’s annual bully-thy-neighbour approach to winter gas supplies.

Exxon made no bones Monday it was buying XTO for its expertise in cracking shale gas plays, with plans to export that talent to the nearly 3 million acres of shale leasehold it has in Poland, Hungary, and Germany. CEO Rex Tillerson almost salivated at the prospect of producing gas smack in the middle of a gas-hungry market (same dynamics as Pennsylvania’s Marcellus Shale and a little town called New York City).

Read the whole thing >

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