SeekingAlpha.com: Chevron, Exxon Should Focus on International Production
posted on: April 03, 2008
Stephen Rosenman: Bio & more articles
The House of Representatives grilled executives from five major oil companies. Congressmen bitterly complained about rising oil prices. They have demanded that the oils rein in gas prices and invest heavily in renewable energy or face large tax increases. Chevron (CVX) and Exxon (XOM), two of our largest oil producers, get most of their revenues by drilling internationally.
Chevron, for instance, produced 730,000 BPD in the United States while bringing in 1.88 milllion BPD elsewhere. Its U.S. upstream earnings for 2007 came to $4.5 billion while overseas it made $10.3 billion. Its income tax for 2007 came to $13.5 billion, a whopping 42% of income. Exxon’s income taxes were similar.
As the Wall Street Journal pointed out in yesterday’s editorial:
Over the past five years, Exxon Mobil’s total U.S. tax bill exceeded its U.S. revenues by some $19 billion.
Chevron and Exxon do not set the price of a barrel of oil. They don’t control the price you pay at the pump for gas. Without them, our energy policy would be at the mercy of overseas oil producers. How much would the United States like to solely negotiate its energy needs from Venezuela, Russia, China? Rather than bashing our integrated oils, we should be doing whatever we can to strengthen them. Unfortunately, the political realities do not allow this.
So I have a modest proposal. Oil producers have become pariahs in the halls of Congress similar to big Tobacco. I suggest that Chevron and Exxon follow in the footpaths of Phillip Morris and split their companies into U.S. and international divisions. This would allow their international divisions to continue to flourish without the hefty burden of high taxation and U.S. regulation and unlock share holder value.
International oil production has been growing far faster than that in the U.S. owing to the U.S. blocking new oil exploration. The remaining smaller U.S. divisions would be left to negotiate their way in the current hostile environment.
Disclosure: Author has a long position in CVXhttp://seekingalpha.com/article/71004-chevron-exxon-should-focus-on-international-production?source=d_email
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
