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Subject:S.1460 does not address billions of dollars of bad oil & gas loans
Date:September 26, 2017 at 3:52 PM
To:Colin Hayes (Senate ENR Ctee) Colin_Hayes@energy.senate.gov, Angela Becker-Dippmann (Senate ENR Ctee)
Angela_Becker-Dippmann@energy.senate.gov
Cc: Michaeleen Crowell (Sen. Sanders) Michaeleen_Crowell@sanders.senate.gov, Katie Thomas Katie_Thomas@sanders.senate.gov
, Darren W. Woods Darren.W.Woods@ExxonMobil.com, Jeffrey J. Woodbury jeff.j.woodbury@exxonmobil.com,
William (Bill) M. Colton William.M.Colton@ExxonMobil.com, Susan K. Avery, PhD savery@whoi.edu, Suzanne M. McCarron
Suzanne.M.McCarron@ExxonMobil.com, Max Schulz max.schulz@exxonmobil.com
"By artificially inflating borrowing bases and then changing the rules, lenders are
propping up companies and saving them from financial distress and-in many
cases-probably bankruptcy. It also keeps banks from realizing enormous losses.
However, it creates artificial market dynamics and prevents the corrections that
should have been seen with huge over-leveraging followed by price collapse.
Lenders and E&P companies had hoped for a price rebound similar to the one in
2009, but it has yet to happen, thus creating more and more pressure from a
regulatory standpoint. As the hopes of a bounce back fade and "lower for longer"
appears to be the new normal, the resulting questions are how long can the shell
game last and who's going to get caught out in the open? Bit.ly/OGJ17Sep17