Exxon Mobil CEO Pleads XTO Purchase, Stresses Energy Independence to US Congress

Exxon Mobil (NYSE: XOM) continues its efforts to acquire XTO Energy, most recently appearing before the US Congress to obtain regulatory approval.

Wednesday, Exxon Mobil CEO Rex Tillerson went before the US House of Representative Subcommittee on Energy and Environment, pleading the company’s case to acquire XTO Energy. The executive noted that the country is faced with the challenge of developing affordable energy while improving environmental standards, stating that the “combination of ExxonMobil and XTO is an important step towards addressing this challenge.”

He stressed that the merger will provide more jobs while increasing investments in cleaner-burning natural gas reserves in the US.

“It will support our nation’s economic recovery, strengthen our nation’s energy security, and help meet our nation’s environmental goals,” said Tillerson.

Exxon Mobil announced the planned purchase of US oil and gas independent XTO Energy in December 2009. Currently, XTO Energy holds some 2.06 billion barrels of oil equivalent in domestic reserves.

An all-stock transaction worth some $41 billion, the agreement is subject to XTO stockholder approval and regulatory clearance. The latter, a hurdle the super-major is currently trying to clear.

In the hearing, the Exxon Mobil executive stressed to the governmental committee that the combination of the two companies would ease the country’s dependence on foreign energy by combining XTO’s domestic reserves and Exxon Mobil’s proven technologies for unlocking unconventional natural gas, such as horizontal drilling and hydraulic fracturing.

He continued by pointing out that the American people could help meet the country’s needs and reverse the current economic downturn by employing energy efficiency, and that the government’s role should be to uphold “stable tax and regulatory policies” that promote fair competition.

He added that oil and gas companies will help to overcome these challenges by continuing to fund the development of technologies that can tap the nation’s vast unconventional natural gas plays. 
Exxon Mobil (NYSE: XOM) continues its efforts to acquire XTO Energy, most recently appearing before the US Congress to obtain regulatory approval.

Wednesday, Exxon Mobil CEO Rex Tillerson went before the US House of Representative Subcommittee on Energy and Environment, pleading the company’s case to acquire XTO Energy. The executive noted that the country is faced with the challenge of developing affordable energy while improving environmental standards, stating that the “combination of ExxonMobil and XTO is an important step towards addressing this challenge.”

He stressed that the merger will provide more jobs while increasing investments in cleaner-burning natural gas reserves in the US.
“It will support our nation’s economic recovery, strengthen our nation’s energy security, and help meet our nation’s environmental goals,” said Tillerson.

Exxon Mobil announced the planned purchase of US oil and gas independent XTO Energy in December 2009. Currently, XTO Energy holds some 2.06 billion barrels of oil equivalent in domestic reserves.

An all-stock transaction worth some $41 billion, the agreement is subject to XTO stockholder approval and regulatory clearance. The latter, a hurdle the super-major is currently trying to clear.

In the hearing, the Exxon Mobil executive stressed to the governmental committee that the combination of the two companies would ease the country’s dependence on foreign energy by combining XTO’s domestic reserves and Exxon Mobil’s proven technologies for unlocking unconventional natural gas, such as horizontal drilling and hydraulic fracturing.

He continued by pointing out that the American people could help meet the country’s needs and reverse the current economic downturn by employing energy efficiency, and that the government’s role should be to uphold “stable tax and regulatory policies” that promote fair competition.

He concluded that oil and gas companies will help to overcome these challenges by continuing to fund the development of technologies that can tap the nation’s vast unconventional natural gas plays.



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