ExxonMobil, the world’s biggest publicly listed oil and gas company, told regulators that it was cutting back the annual bonus of Rex Tillerson, its chief executive. Tillerson certainly makes enough already; indeed, his salary is going 7 per cent next year – to $2.2m.
But his 2009 bonus is being cut 40 per cent to $2.4m. The bottom line is that the company has not done as well this year as in the past. In the third quarter, for example, Exxon’s profit plunged 68 per cent on the grim outlook.
On FT Energy Source:
Some clear thinking, at last, on US ethanol?
The Falkland Oilands
Oil is an inflated asset
Climategate and suspicion of science
From bad back to worse for Mexican oil production
The Clean Development Mechanism, explained
Ugandan oil and Brazilian forests in Spot news
- A 100% renewables plan (Scientific American)
- Banking on a green industrial revolution (Guardian)
- Why a vehicle efficiency market is needed (Scarce Whales)
- Cash for appliances (Econbrowser)
- UK newspapers do contango (The Barrel/Platts)
- Tech talk: Drilling rigs and drilling ships (Bit Tooth Energy)
The news that the head of East Anglia University’s will temporarily stand aside over the ‘climategate‘ affair is unlikely to change anyone’s mind about the issue. Whether the independent review the university has flagged will change the debate much remains to be seen – the terms of the inquiry are yet to be announced. Penn State University is also investigating Michael Mann, another scientist whose emails were leaked.
FT blogger Clive Crook says he doesn’t think the scientists involved can be trusted. Quite a few blogs, such as Chip Knappenberger at Master Resource blog, suggest that the whole peer review process might be at fault. Certainly a large proportion of people are suspicious of mainstream science – remember the MMR vaccine furore?
By Izabella Kaminska
BNP Paribas’ Harry Tchilinguirian puts forward the idea (once again) that oil prices have disconnected from physical reality, adding that until unconventional monetary policy is removed from the table the market can expect crude futures to trade as an investment class rather than a consumption asset.
Mexican oil output. Source: Barclays Capital
Mexico’s declining oil output has been evident for some time now – and it suffered a symbolic setback when its massive Cantarell field fell so sharply that it lost its place as the country’s number one field.
Analysts at Barclays Capital point out that this year’s decline will actually be slightly less bad than last year’s:
For the year to date, Mexican oil output is down 6.3%. While this represents a deceleration compared to the 8.9% fall recorded in 2008, it is still a much faster pace of decline than that averaged since the start of the Mexican oil production downtrend in 2005.
But next year they forecast that the decline rate will again gather pace:
We expect Mexican oil output to continue to decline sharply, and we forecast the pace of fall to average 8.9% in 2010.
Adios, Cantarell (FT Energy Source, 12/02/09)
The world’s most successful, but worst paid oil manager? (FT Energy Source, 09/08/09)
Clarion call from Cantarell (Gregor, 23/08/09)
By Neil Hume
Right, here’s something to strike fear into the hearts of those ‘sharks‘ hoarding oil off the coast of Great Britain.
The UK could be sitting on 60bn barrels of oil. Well, sort of.
From Wednesday’s Sun:
THE Falklands are on the brink of a massive oil boom that could boost Britain’s battered economy – 27 years after UK forces retook the islands from Argentina.
Margaret Thatcher was branded crazy when she sent a task force to kick out the South American invaders from the “worthless” lumps of land at a cost of 255 British lives.
But the damp, distant territory largely given over to sheep farming has now been dubbed Baa-rain after scientists estimated that up to 60 BILLION barrels of oil lie beneath its coastal waters.
The US Environmental Protection Agency says it will wait until the middle of next year before deciding whether to increase the allowable ethanol content in fuel. Growth Energy, a biofuels industry association, had asked the EPA to allow for the use of up to 15 per cent of ethanol in gasoline, up from 10 per cent.
But the EPA says it wants more testing data on whether engines in newer cars can handle an ethanol blend higher than the current 10-per cent limit before making a decision. This is a welcome development.
Waiting for the science has not been the way government has, in the past, made its decisions on many bits of energy policy.
Or, more specifically about the UN’s clean development mechanism. The CDM allows wealthy countries to buy approved carbon offsets in developing countries, partly to reduce emissions in a more cost-effective way, and partly to transfer wealth.
Though the CDM hasn’t exactly been a disaster, it’s certainly been controversial – some question the very concept of offsetting, while others point to flaws and scandals in the CDM itself. The need for reform is one of the few things that pretty much everyone agrees on ahead of Copenhagen. How to reform it is another matter.
So who’s benefiting from CDMs? China is in the lead in terms of the number of projects and tonnes of CO2 offset, although some Chinese projects – most recently wind farms – are no longer receiving approval.
One of the interesting (and controversial) aspects of the CDM is that many of the world’s very poorest countries have few if any projects – many African countries barely register.
Exxon CEO’s bonus cut by 40%
Tillerson’s base salary rises to $2.2m (FT)
Tullow considers buying Heritage’s Ugandan blocks
Must decide whether to pre-empt sale of assets to Eni (FT)
Total to invest $18bn next year, seeks new partnerships
French major to work more closely with China, Russia, Brazil (Bloomberg)
SMX secures regulatory approval
New Asian commodity derivatives exchange gets go-ahead (FT)
E-mail flap prompts UK scientist to stand down for now
Head of CRU to stand aside temporarily; independent review pending (Bloomberg)
Brazil wants limit on use of tropical trees for carbon credits
Shifts stance slightly on forest protection offsets (Bloomberg)