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December 20, 2009 in Business
Exxon Mobil deal places big bet on natural gas
Exxon Mobil’s purchase of a Texas natural gas producer for $29 billion could reshape the U.S. energy landscape, setting the stage for the fuel to challenge coal in the nation’s electrical grid and helping to alleviate American dependence on foreign oil.
The wager by the nation’s largest oil company positions Exxon Mobil to thrive in a world in which petroleum, its key product, is getting tougher to come by.
The deal is a “game-changer” that could shift the U.S. energy mix while reducing carbon emissions, said oil expert Daniel Yergin, author of “The Prize: The Epic Quest for Oil, Money and Power.”
Natural gas burns cleaner than oil or coal and is expected to be in particular demand as restrictions are tightened on the release of greenhouse gases.
Exxon will pay $29 billion in stock for Fort Worth-based XTO Energy. Exxon also will assume $10 billion of XTO’s debt.
Exxon becomes an instant leader in the extraction of natural gas from shale, a process that has opened the U.S. to a new gold rush of potential fuel. Other energy companies are also positioning themselves to expand their natural gas businesses, as the fuel is used to generate electricity and power buses and trains.
As many as 175,000 industry jobs could be created over the next 10 years, said John Felmy, chief economist for the American Petroleum Institute.
Key, he said, are the improved technologies that allow the fuel to be extracted from shale. This makes natural gas so abundant that it can inexpensively replace fuel that is purchased overseas.
Analysts said Exxon’s purchase of XTO was a sign that the giant oil company was betting on a much larger role for natural gas in the U.S. energy future.
Natural gas probably will be used more to power the electrical grid. Bus fleets and truck fleets figure to be the first expanded use for medium- to short-range transportation. A big increase in natural gas-powered personal vehicles might be further down the road, said Phil Weiss, an oil analyst for Argus Research.
Let the ketchup flow freely 
Gumby on December 20 at 11:53 p.m.
This is not an off topic comment in case you are wondering about it.
I just dont understand why everyone is talking about clean energy while continuing to burn firewood sometimes on daily basis. I posted comments about firewood smoke and its health hazards. Yet, readers responded that firewood smoke is no big deal. If natural gas is cleaner than coal , then why are homeowners still preferring firewood over their traditional gas or electric furnaces.
Even worse, there is no pollution control mechanisms yet to be mandated for all chimneys and stove pipes.
Coal fired powerplants pollute less than maybe one hundred open chimneys or stovepipes yet they serve hundreds of thousands homes each.
Billions of poor people still burn firewood around the world because they lack electricity or natural gas. People in developed countries still burn firewood which doesnt make any sense to me anymore.
Firewood smoke kills so many people , yet there is no research linking firewood smoke to any diseases. We are too focused on everything else but firewood smoke.
I simply do not understand it a bit. Sure, I read about EPA trying to encourage people to switch to gas fireplaces or stoves away from firewood. Why encourage instead of mandating. Also, people is not supposed to use firewood on daily basis. I can understand holiday firewood or emergency firewood for few coldest nights.
There is too many of us burning firewood,yet no one is counting how much pollution is generated from firewood.
I just cant understand it..