06-27-07 by dugan
You’d think, after the Senate dropped from its energy bill anything that might give heartburn to Big Oil, that ExxonMobil CEO Rex Tillerson would be grinning ear to ear. But no. In an exclusive interview this week in the
Financial Times, T Rex is one unhappy dinosaur. He seems to think that keeping billions of dollars in current tax breaks isn’t good enough. He needs more.
Here’s one point that really caught my eye:
[Tillerson] was sceptical about the potential development of biofuels in the US, arguing that while the increase in ethanol production to 7.5bn gallons a year set out in a previous bill was achievable,
going further would probably prove impossible with the current "first
generation" biofuels such as ethanol made from corn.
Point 1: The biggest brake on commercial biofuels is money, and it was Tillerson and his friends who killed a Senate plan to pay for biofuel development by closing some of Big Oil’s tax loopholes.
Point 2: If biofuels are not ready to go commercial, why are the American Petroleum Institute, Chevron and others saying that the threat of biolfuel is what’s really holding them back from expanding refining capacity?
Tillerson also said:
"There’s really nothing in that energy bill that I can tell is going to
in any way alter the current energy supply or demand pricing situation.
In fact, it runs a risk of actually making it worse; certainly in the
short term it doesn’t do anything."
Translation: "We demand to drill wherever we want, without restriction, but we reserve the right to make as little gasoline as we please, so we can keep hitting those record pump prices." It seems so sensible to T Rex.