Russia sanctions: impact on XOM

I bought a fair-size chunk of XOM in March 2020, when the price of oil was negative due to a p!$$!ng contest between Russia and Saudi Arabia. That was a good move.

https://www.google.com/search?client=firefox-b-1-d&q=xom…

I’m uneasy about the situation in Ukraine because XOM has a lot of money invested in Russia which could be affected by the sanctions.

https://www.wsj.com/articles/u-s-eu-sanctions-on-russia-coul…

**U.S., EU Sanctions on Russia Could Ensnarl Western Oil Companies**
**Washington and Brussels aren’t targeting oil or gas exports, but broader restrictions could still hit firms with big business in Russia**

**by Alistair MacDonald and Laurence Norman, The Wall Street Journal, Jan. 29, 2022**

**...The U.S. and Europe aren’t weighing sanctions against Russian exports of oil and natural gas directly given concern they could increase already high energy costs in Europe....**

**British oil giant BP PLC owns almost 20% of Russian oil producer Rosneft Oil Co. Its rival, Shell PLC, alongside U.S. major Exxon Mobil Corp. , are drilling for natural gas and oil from fields around Sakhalin Island in Russia’s far east...xxon owns a 30% stake in a $12 billion project near Sakhalin, which is one of the largest-ever foreign investments in Russia. The project was largely unaffected by the previous round of sanctions in 2014. Exxon said it was monitoring the current situation....** [end quote]

After a nice runup, XOM has suddenly stalled. Maybe other investors have the same concerns.

I sold my XOM stock today. I’m sorry to do it because of the rich dividend. Better safe than sorry.

Wendy

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So many people have been critical of Germany’s association with Russia on Nord Stream. However, nobody seemed to have any problem for years with Exxon, Shell, BP, and other O&G majors investing so much more in Russia. What fools!

Jaak

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Exxon, Shell, BP, and other O&G majors investing so much more in Russia. What fools!

Rope sellers.

Steve

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So many people have been critical of Germany’s association with Russia on Nord Stream. However, nobody seemed to have any problem for years with Exxon, Shell, BP, and other O&G majors investing so much more in Russia. What fools!

Jaak

Germany is a sovereign country that is supposed to have the good of it’s people at heart? Instead they pander to whichever protest groups showed up to keep the coalition in power while pretending they can replace all that coal, lignite, Nat gas and even nuclear with wind and solar and shutting down the only clean reliable source of baseload power they have over an undersea quake in a famously unstable location off the coast of Japan on the other side of the world.

The chickens have come home to roost (Angela cleverly retired at the perfect time). It was obvious she understood where this was headed when she offered to help fund a couple of LNG plants in Cape Breton.

I like Germany and the German people but their politics is designed to fail.

Anymouse

OT - Wow, seven Russian aircraft downed so far!!!

Global oil prices surging, whatever shall I do … would it be unseemly to book another vacation … this one to California? I haven’t seen the grandsons other than on video in 30 months.

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Exxon, Shell, BP, and other O&G majors investing so much more in Russia. What fools!

Jaak,

Yes and no.

As the Russians recede into a cold war without a dollar exchange, we will pay a price. But we can afford the price. The west will find other sources of energy displacing Russia. Meanwhile Chinese corporations have less of a presence in the Russian energy sector for now.

BTW now is a good time for China to take back some territory from Russia. Just a passing thought.

OT - Wow, seven Russian aircraft downed so far!!!

Merely a small beginning.

Russia will beg to get out. Putin may have signed his actual life away with this act.

This smells of a Russian failure from start to finish.

Wasn’t during WW I that Nicolas was overthrown?

There was never an upside for Putin in any of this. He is a crazy little dictator. If anyone can tell me how the Russians benefit please tell me.

I used to say there ain’t gonna be no Brexit because it would be suicidal for a UK of GB already integrated into EU economy with little real upside except for Boris Johnson and his demagouges.

WRONG! (although I still expect the Brexit to be reversed after a few more years of feverish foolishness)

I see much the same with this war. Putin is gaining whatever it is he is gaining. Conquering angry people who hate you is dangerous, but possible.

david fb

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Russia will beg to get out. Putin may have signed his actual life away with this act.

Recall, after nine years and a few months of spilling money and blood in Afghanistan, the Soviets pulled out in February, 1989. The Soviet regime fell in December, 1991.

POTUS to announce sanctions today at 12:30 est.

Steve

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“Wow, seven Russian aircraft downed so far!!!”

Reported by Ukraine…

The first casualty of war is truth.

POTUS to announce sanctions today at 12:30 est.

At this point, I think the only worthwhile sanction will be every western company sabotaging any joint ventures beyond any hope of recovery or forensic reconstruction and writing Russia off as a complete loss. The fact that this would raise a big red flag to China’s Taiwan aspirations is just a happy side-effect.

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sabotaging any joint ventures beyond any hope of recovery or forensic reconstruction and writing Russia off as a complete loss.

That would hurt the “JCs” rope selling profits. Interesting to see how this shakes out, see how shiny the US is.

Steve

Thank you for recommending this post to our Best of feature.

Recall, after nine years and a few months of spilling money and blood in Afghanistan, the Soviets pulled out in February, 1989. The Soviet regime fell in December, 1991.

I like to think I had a small hand in that. }};-D

Recall the poor Delta class Soviet sub skipper who got lost off the coast of Newfoundland, came up for a peek to try to figure out where he was … then put up his periscope only to see his vision blocked by an CP107 Argus sub hunter less than 100 feet over his head bomb bay doors open and vertical camera flashing pictures of him for posterity.

Of course the rules were that we were supposed to pretend we didn’t see him … but the pilot got excited and ignored the TACNAV’s order. The admiral had a party laid on for the crew when we landed back in Summerside. The weather got very drunk and disorderly. When the pictures were developed the Squadron commander suggested the skipper probably pooped his pants. }};-D

That was of course during the original Soviet invasion of Afghanistan when the Soviet Navy threw every sub they had available including barely trained crews into the mid-Atlantic to keep the pressure on and distract attention from the main show.

Even in Alexander’s day Afghanistan was called “Where Empires go to Die”.

OT - there have been thousands of applications for Visa’s to move to Canada in a matter of hours. We have a very large community of Ukrainians dating back several decades.

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The first casualty of war is truth.

Yes, but the place is full of foreign journalists. Helicopters are particularly vulnerable to AA fire and a lot of modern equipment was fast tracked to the Ukrainian military including by our own PM.

Our defense minister is on CBC ait on the topic.

Anymouse

Even in Alexander’s day Afghanistan was called “Where Empires go to Die”.

Only it was in Attic Greek. :slight_smile:

More seriously, there have been a number of regimes in Afghanistan that lasted quite a while. For example, the Persians ruled there for a couple of centuries before said Alexander upset the applecart.

DB2

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Recall the poor Delta class Soviet sub skipper who got lost off the coast of Newfoundland,

A thread started on the FB Navy board a couple days ago, asking about encounters with Russians. The guy who started the thread had been on the Kennedy. In those days, when at sea, trash was simply thrown off the fantail, daily. He talked about how a Russian spy ship would come up on their stern and start sifting through their trash. He and his mates would thrown things at the Russians, they got pretty good range out of D size batteries, but the Russians never got close enough to hit them.

I offered a couple of Tim’s stories: the one about the sub, and the one about his DDH running interference for America when a Russian tried to cut across the carrier’s bow. They proved very popular.

Steve

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Thank you for recommending this post to our Best of feature.

… and the one about his DDH running interference for America when a Russian tried to cut across the carrier’s bow. They proved very popular.

Steve

Oh Gawd, the was the old Saguenay HMCS Saguenay (DDH 206). She was the second DDH (helicopter carrying destroyer converted from a DDE).

https://en.wikipedia.org/wiki/HMCS_Saguenay_(DDH_206)

She is now an artificial reef somewhere near Lunenburg, Nova Scotia for divers to explore.

The sinking video. https://www.youtube.com/watch?v=zMgOojNZ86o

The Det commander and I were watching the show from the flight deck and he commented that the ships captain was crazier than a hoot owl. The US admiral thought it was great and radioed that we could fly our Sea King in his pattern any time we liked. No thanks the USN Sea Kings were being used as plane guard for launches of strike aircraft off the Norwegian coast… boring stuff compared to sub hunting. The two Russian destroyers (Krivaks I think?) finally gave up and left.

That would hurt the “JCs” rope selling profits. Interesting to see how this shakes out, see how shiny the US is.

Maybe their profits, but they can just shrug it off and probably even collect a bonus for “Not letting those dirty commies have our stuff.”

Germany is a sovereign country that is supposed to have the good of it’s people at heart? Instead they pander to whichever protest groups showed up to keep the coalition in power while pretending they can replace all that coal, lignite, Nat gas and even nuclear with wind and solar and shutting down the only clean reliable source of baseload power they have over an undersea quake in a famously unstable location off the coast of Japan on the other side of the world.

The chickens have come home to roost (Angela cleverly retired at the perfect time). It was obvious she understood where this was headed when she offered to help fund a couple of LNG plants in Cape Breton.

I like Germany and the German people but their politics is designed to fail.

Anymouse

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Anymouse comes out of hiding to confront me. Here are some rebuttals to your rants on Germany:

  1. Germany looks after the welfare of it’s people much better than USA.
  2. Germany did not like the radioactive fallout from the Chernobyl disaster and when Fukushima disaster happened they saw that human beings are incapable of building dangerous power generation and staying on top of all the dangers and making sure they do not happen.
  3. Fukushima was a man-made disaster because TEPCO did not want to spend the money for a proper seawall, spend the money to properly train their plant operators to deal with a total loss of all AC power, and spend the money to place the emergency diesel generators above flood levels higher elevations and flood proof rooms located outside the reactor building.
  4. German politics has not failed the people or the economy. The German economy is the fourth-largest in the world with a GDP of over $4.0 trillion.
  5. German is not going to fail - but your rants will fail.

Jaak

I see much the same with this war. Putin is gaining whatever it is he is gaining. Conquering angry people who hate you is dangerous, but possible.

For the life of the USSR Ukraine might have been angry but, so what? Ukraine didn’t ‘gain’ its independence. It was ‘gifted’ its independence.

Then there was the invincible Saddam Hussein Imperial Guard. Decimated but forgiven utter annihilation by Saudi request. Go figure!

The difference between reality and unicorns.

The Captain

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Then there was the invincible Saddam Hussein Imperial Guard. Decimated but forgiven utter annihilation by Saudi request. Go figure!

Iraq does make a wonderful buffer between Saudi and Iran…