Exxon CEO: Evaluating Natural-Gas Exports From US Gulf, Canada
May 30 2012 - 1:17PM
Dow Jones News
Exxon Mobil Corp. (XOM) is studying the possibility of exporting
natural gas from the U.S. Gulf Coast and Canada as new shale
drilling has unlocked enough new natural-gas reserves to meet
domestic demand for years to come and allow exports, Chief
Executive Rex Tillerson said Wednesday.
Exports of natural gas will create jobs, increase tax revenues
and help the U.S. trade balance, Tillerson said at the company's
shareholder meeting in Dallas.
Exxon Mobil, the world's largest publicly traded oil company and
the largest U.S. natural-gas producer, recently has said it was
analyzing exports from domestically produced natural gas.
Tillerson's remarks are the latest sign the company is following
seriously the trend of smaller companies, such as Cheniere Energy
Inc. (LNG), which already have obtained necessary permits to export
natural gas from the U.S.
Critics have said exports would raise the price of domestic
natural gas and lead to increased use of hydraulic fracturing, a
drilling method that environmentalists oppose because it pumps
chemicals underground.
Separately, a shareholder proposal requiring greater disclosure
by Exxon on the risk and impact of its hydraulic-fracturing
practices was voted down by about 70.4% of the company's
shareholders.
Last year, shareholder proposals to have Exxon prepare a report
on the environmental impact of fracking was rejected by 71.75% of
shareholders.
Influential proxy advisory firm ISS recommended Exxon's
shareholders vote in favor of the fracking suggestion ahead of the
meeting, saying shareholders would benefit from more-detailed
information.
A proposal for an independent chairman at the company also
failed to passed after receiving 35.2% of votes cast, up from 31.3%
in 2010. Shareholder proposals require majority approval for
passage.
A majority of shareholders approved Exxon's executive
compensation.
-By Isabel Ordonez, Dow Jones Newswires, Tel 713-314-6090;
isabel.ordonez@dowjones.com
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