Written by Miranda Marquit
Exxon Mobil (XOM), operates leases that it purchased more than 30 years ago from the gas and oil rich Point Thomson field in Alaska - leases that have never been developed. Now, though, Exxon is ready to move forward. The snag is that XOM, along with other lease partners BP (BP) and Chevron (CVX), are no longer welcome in the state of Alaska. Since 2006 Alaska has been trying to take back the leases.
XOM wants to get moving on the development, and the current energy climate means that the company is more likely to get support from various others, ranging from the public to officials, even though the dispute has moved to the courts. In fact, rather than wait for the outcome of the dispute in the courts, Exxon Mobil is already moving ahead with the proposal that the state has rejected. Point Thomson is expected to provide 200 million cubic feet of natural gas from the first phase of development.
If the plan is successful, it should add to Exxon's upstream operations, likely injecting increased profitability into the company.
Disclosure: I do not own any Big Oil stock