from NYT (comment from FB):
Rex Tillerson’s Company, Exxon, Has Billions at Stake Over Sanctions on Russia
By ANDREW E. KRAMER and CLIFFORD KRAUSS DEC. 12, 2016
https://www.nytimes.com/2016/12/12/world/europe/rex-tillersons-company-exxon-has-billions-at-stake-over-russia-sanctions.html
MOSCOW — Now that President-elect Donald J. Trump has chosen Rex W. Tillerson, the chief executive of Exxon Mobil, to be the next secretary of state, the giant oil company stands to make some major gains as well: It has billions of dollars in deals that can go forward only if the United States lifts sanctions against Russia.
As head of America’s largest oil company, Mr. Tillerson has earned a friendship award from Russia and voiced skepticism about American sanctions that have halted some of Exxon Mobil’s biggest projects in the country.
But Mr. Tillerson’s stake in Russia’s energy industry could create a very blurry line between his interests as an oilman and his role as America’s leading diplomat.
“The chances that he will view Russia with Exxon Mobil DNA are close to 100 percent,” said Robert Weissman, the president of Public Citizen, a public interest group based in Washington.
A tall, strapping Texan, Mr. Tillerson guided Exxon’s entry into the sharp-elbowed oil politics of Russia after the breakup of the Soviet Union. He has praised the country for its vast potential as an oil supplier ever since, developing close ties to the Kremlin leadership along the way.
Exxon Mobil has various projects afoot in Russia that are allowed under American sanctions. But others have been ground to a halt by the sanctions, including a deal with the Russian state oil company to explore and pump in Siberia that could be worth tens of billions of dollars.
Russian officials have optimistically called the agreement a $500 billion deal.
As for Mr. Tillerson personally, he was scheduled to retire next year from Exxon Mobil. According to company filings this year, Mr. Tillerson owned $218 million in company stock, and his pension plan was worth nearly $70 million.
Russia was already a focus of concern after the Central Intelligence Agency said the Kremlin had intervened in the American presidential election to help Mr. Trump’s candidacy. Now Mr. Tillerson’s career is igniting a debate over the blending of business and politics — and whether that could tip the scales in Russia’s favor on major policy decisions like the sanctions.
Speaking on Monday in Moscow, Carter Page, a supporter of Mr. Trump who described his former work for the Trump campaign as pulling together “new ideas” on foreign policy, said he was excited that Mr. Tillerson would probably put more of an emphasis on private sector business opportunities in relations between Russia and the United States.
“What makes me excited about new possibilities is the chance to really work on new things to improve more from a business standpoint,” Mr. Page said at a news conference.
Others were much warier of a Tillerson appointment.
“As secretary of state, he would be called upon to negotiate with world leaders like Vladimir Putin,” said Michael T. Klare, a professor at Hampshire College and the author of “The Race for What’s Left,” which delves into the rush for oil in the thawing Arctic.
“In these negotiations, one has to wonder what would influence the types of deals he is making,” Mr. Klare said. “Questions arise over whether his actions would be benefiting his company or the interests of the United States and its allies.”
Mr. Trump has called Mr. Tillerson a “player.” At an annual meet-and-greet for corporate chieftains with President Vladimir V. Putin at the St. Petersburg economic forum, Mr. Tillerson was a regular, his silver coiffure bobbing in the crowd of former spies who have become Russian government and corporate officials and now host the event.
Along with other American chief executives, Mr. Tillerson skipped the forum in 2014 to conform to White House pressure to isolate Russia, and Exxon Mobil executives insist they obey the sanctions.
“We follow the law,” said Alan Jeffers, an Exxon Mobil spokesman. “If a law says that a U.S. corporation is not allowed to participate in activities in a particular jurisdiction, that’s what we do.”
The sanctions are intended to put economic pressure on Russia for its lethal intervention in eastern Ukraine, with the aim of forcing the Russian leadership to change course.
Still, Mr. Tillerson has made his criticism of the American policy clear.
At Exxon’s 2014 annual meeting, Mr. Tillerson said: “We do not support sanctions, generally, because we don’t find them to be effective unless they are very well implemented comprehensibly, and that’s a very hard thing to do. So we always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming.”
Then, during a question-and-answer period at a Houston conference in early 2015, Mr. Tillerson noted his company looked forward to the sanctions’ being lifted.
“We’ll await a time in which the sanctions environment changes or the sanctions requirements change,” he said of blocked Exxon Mobil projects.
Mr. Tillerson’s approach in Russia tracks what Robert Amsterdam, a lawyer for the Russian tycoon Mikhail B. Khodorkovsky, who had been jailed, described as “the geopolitics of signaling” to the Kremlin, a skill of survival and success for Western oil executives in Russia.
“Exxon has been willing to engage in practices that make it a first-round contender for new Russian assets,” Mr. Amsterdam said. “The way you do that is coming as close to the line as humanely possible to support the Russians” without breaking the law.
Western sanctions were first enacted on Russia in March 2014 in response to the Russian annexation of Crimea. Then the United States and its allies, including the Netherlands, implicated Russia in the shooting down of Malaysia Airlines Flight 17 over eastern Ukraine that July. All on board were killed, including 193 Dutch people heading to Asia for vacations and work, flying for a just few moments over a war zone.
That prompted tighter sanctions. A month later, Russian tanks entered eastern Ukraine, turning the tide against the forces of the American-backed Ukrainian central government. Today, about 300 American soldiers rotate through Ukraine as trainers.
After the Russian incursion in 2014, the United States prohibited the transfer of advanced offshore and shale oil technology to Russia. The American government announced on Sept. 12 that year that Exxon was to halt all offshore drilling assistance to Rosneft, the Russian state oil company, by Sept. 26.
But Exxon Mobil’s high-tech rig was already drilling in the Kara Sea, in an unfinished $700 million project that had yet to find oil. It would be worthless if not completed.
Russian executives then told Exxon Mobil that Russia’s security services would fly in a Russian crew — in essence seize the rig — if Exxon Mobil complied with the American law and left without completing the well, according to an oil company executive who had visited the rig in the Arctic.
Exxon relayed the threat to the American government, and the Treasury Department capitulated, granting an extension that stretched the window to work until Oct. 10. In a statement in 2014, the Russian state oil company denied conveying such a threat to Mr. Tillerson’s company.
With the extension in hand, Exxon Mobil discovered a major field with about 750 million barrels of new oil for Russia a few weeks later. Igor I. Sechin, the chief executive of the Russian state oil company, called the newly discovered oil field Pobeda — Russian for victory.
It is one of the Arctic developments that Exxon Mobil has rights to work on should the sanctions be lifted.
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(comment:)
Not my words but, the oil goes deeper. Here are more facts for those who have yet to see this, with sources to support our concerns. Please share away. The Dakota Access Pipeline, Keystone XL, the selling of national parks, Russia hacking our elections and Trump's cabinet is part of a larger grand plan. Let's put this all together, shall we?
1)Exxon has a $500 Billion dollar deal with Russia currently shelved due to US sanctions from Russia invading the Ukraine. Rex Tillerson, former Exxon CEO has been named Trump's Secretary of State. A position that gives him & Trump the power to remove the sanction and move the project with Putin (whom Rex has had a relationship with for years) forward. https://www.nytimes.com/.../rex-tillersons-company-exxon...
2)Then we have Rick Perry as Trump’s Energy Secretary. Perry is on the Board of Directors of Energy Transfer Partners that owns the Dakota Access Pipeline that protesters are fighting hard to stop building through Native American reservation land. Why would Trump appoint him to this position? Answer: Rick Perry now has full government power to build his pipeline anyway he wants that suits his $3.75 billion credit line to Energy Transfer Partners investment. Energy Transfer Partners recently said in their financial forecast that they’re perfectly positioned to take advantage of “new laws allowing shipping export of oil from the US”. Recently, Trump immediately pushes the pipeline forward (however the Swedish bank backing the project has promised to divest immediately if this goes forward, but many other banks still back it). Trump himself owned stock in the pipeline until very recently. Supposedly he has now divested, or turned the stock over to a family trust.
http://www.cnbc.com/.../trump-energy-dept-pick-rick-perry...
3) Republican Senate Majority Leader McConnell is accused of attempting to keep Russian interference in the election quiet. Why? Republican Senate Majority Leader McConnell is married to Trump's Dept. of Transportation, Secretary Elaine Chao whose family is worth billions in the shipping industry. Why would she want to be part of this? Answer: She would oversee the regulation of the United States' maritime resources, and possibly be able to bend federal regulations to accommodate her family's business. This gives her power to ship the massive amounts of oil from the Dakota Access Pipeline and from ExxonMobile from all the new drilling sites Trump, Rex, and Russia approves. http://fortune.com/2016/11/29/donald-trump-elaine-chao/
4) Why would Trump appoint Oklahoma Attorney General, Scott Pruitt to be the Head of the EPA(Environmental Protection Agency)? Answer: Scott Pruitt’s current court case against the EPA over what he considers to be overly strict pollution standards would be invalid once he gets the power to change those standards and loosen them so that Rex Tillerson of Exxon can drill all over the world for Russia, Rick Perry of Energy Transfer Partners can pipe oil through Native American lands through the Dakota Access Pipeline, and Republican Senate Majority Leader McConnell and his wife, Dept. of Transportation, Secretary Elaine Chao’s family can ship it all
over the world.
https://www.washingtonpost.com/.../trump-names-scott.../
5) On the 1st week of January, the GOP majority in the House of Representatives out voted the Democrats and passed a bill to devalued public lands & buildings (parks & wilderness) to be worth $0 so that they can sell it, which benefit$ oil & mining companies. Yosemite National Park & federal buildings like FBI J. Edgar Hoover headquarters building could ALLb be given away at tax payers expense. That bill has been repeal, but new similar ones are re-introduced.
http://www.thenewcivilrightsmovement.com/.../republicans...
6) Then within minutes of the inaugeration, the White House puts up its "Energy First" statement under the "issues" section with his administration's plans to MINE and DRILL our PARKS and does not allow any area on the website where the people can send feedback about our disapproval. This is the statement, "We must TAKE ADVANTAGE OF the estimated $50 trillion in untapped shale, oil, and natural gas reserves, especially those on FEDERAL LANDS that the AMERICAN PEOPLE OWN." The whole point of congress passing a bill to devalue public lands to $0 is to make it an instant profit for the oil and mining companies to start working on breaking up our national parks as quickly as possible without any red tape that was once there before when they had to estimate the value of the land to the budget committee. Many of Trump's cabinet members are already billionaires and they have interest in politics to further their investments in these oil and mining companies.
https://www.whitehouse.gov/america-first-energy
Plus, the "energy first" initiative in the White House website says the administration wants to start a COAL INDUSTRY AS a solution to CLEAN ENERGY. REALLY? After sending 13 million green energy jobs to China instead of keeping it in the US where it could easily go to the jobless Midwest that has the land and labor to house solar panels and instead intends to resell that clean energy back to Americans. As other countries grow wealthy with green energy such as solar power, he proposes "coal".
http://usuncut.com/.../trump-cede-13-million-jobs-china.../
The Trump administration has set-up the perfect scenario for depleting the Earth of archaic resources for oil that we no longer need. Instead, we should be utilizing advancements of green energy solutions like the rest of the world. This situation also sets up the potential for devastating Artic drilling in the very near future, which fortunately, the Obama administration put a new ban on all future Artic drilling before he left office. Yet, since Trump reversed Obama's executive order to stop the pipeline project, then he may also reverse the ban on artic drilling so that Rex can get back to his projects there. With climate change being a real thing, the pollution would swim all over.
While Trump plays his magic show of bringing out the hate and bigotry amongst Americans to fight amongst each other like an episode of “American Apprentice”, his true intentions are to get his treasonous friends to drill the Earth of its oil with no environmental standards. This will make him and his friends trillions. What will we have left when the anger from the Trump voters and everyone else subside, a devastated Earth, all because some American citizens got caught up with Trump’s magic antics of a wall around Mexico that he says Mexico will pay for, a Muslim registry for internment camps, overturning abortion rights that can bring back coat hanger, back-alley abortions, normaling Nazis (alt-right, white nationalists) and all the surface level conservative arguments over the decades. Look over here, fight, fight, but DON’T EVER LOOK OVER HERE where the real devastation will happen behind your backs. If you’re reading this and understand that this will affect everyone all over the world, then hold Trump and his cabinet accountable. If you don’t believe this and think its fake news, then do yourself a favor and prove you’re right by clicking on the research links to find out the truth. It's a very clear trail to government misuse and we all need to work together to prevent this from happening.
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