12 mar 2015 letter to us senate ctee on energy & natural resources
TRANSCRIPT
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
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Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Lamar AlexanderSenate Committee on Energy and Natural Resources455 Dirksen Senate O!ce Building Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Alexander,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
3/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator John BarrassoSenate Committee on Energy and Natural Resources307 Dirksen Senate O!ce Building Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Barrasso,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
4/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Shelley CapitoSenate Committee on Energy and Natural Resources5 Russell Senate O!ce Building Courtyard Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Capito,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
5/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Bill CassidySenate Committee on Energy and Natural Resources703 Hart Senate O!ce Building Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Cassidy,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
6/22
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
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Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Jeff FlakeSenate Committee on Energy and Natural ResourcesRussell Senate O!ce Building 368 Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Flake,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
8/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Cory GardinerSenate Committee on Energy and Natural ResourcesDirksen Senate O!ce Building SD-B40B Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Gardiner,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
9/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator John HoevenSenate Committee on Energy and Natural Resources338 Russell Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Hoeven,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
10/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Mike LeeSenate Committee on Energy and Natural Resources316 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Lee,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
11/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Rob PortmanSenate Committee on Energy and Natural Resources448 Russell Senate O!ce Building Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Portman,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
12/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator James E. RischSenate Committee on Energy and Natural Resources483 Russell Senate O!ce Building Washington, DC 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Risch,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
13/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Maria CantwellSenate Committee on Energy and Natural Resources511 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Cantwell,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
14/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Al FrankenSenate Committee on Energy and Natural Resources309 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Franken,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
15/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Martin HeinrichSenate Committee on Energy and Natural Resources702 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Heinrich,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
16/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Mazie HironoSenate Committee on Energy and Natural Resources330 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Hirono,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
17/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Joe ManchinSenate Committee on Energy and Natural Resources306 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Manchin,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
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8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
18/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Debbie StabenowSenate Committee on Energy and Natural Resources731 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Stabenow,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
-
8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
19/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Elizabeth WarrenSenate Committee on Energy and Natural Resources317 Hart Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Warren,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
-
8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
20/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Ron WydenSenate Committee on Energy and Natural Resources221 Dirksen Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Wyden,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
-
8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
21/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Bernie SandersSenate Committee on Energy and Natural Resources332 Dirksen Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Sanders,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt
mailto:[email protected]
-
8/9/2019 12 Mar 2015 Letter to US Senate Ctee on Energy & Natural Resources
22/22
Douglas A. GrandtPO Box 6603
Lincoln, NE 68506 (510) 432-1452
March 12, 2015
Senator Angus KingSenate Committee on Energy and Natural Resources359 Dirksen Senate O!ce Building Washington, D.C. 20510
Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator King,
If the current situation for refineries could be seriously precarious, would you be concerned?
During the past month, I have sent you three letters expressing my concern about an issue thatis not being discussed, but which could spell economic and social disaster for Americans.
Nobody can predict exactly how future events may play out, but we should not let ourselves beblind-sided for a conscious lack of awareness and consideration of foreseeable events.
Further to my letters of February 15, February 27 and March 2, on March 10, 2015, Reuters published, the article “Exxon, Shell's spending patterns may help them through oil price drop.”
Consider the implications of refining companies going out of business unexpectedly. Reuters’ assessment is an indication that the industry is anything but stable for the foreseeable future:
Exxon Mobil and Royal Dutch Shell are likely to withstand the oil price collapse better thantheir rivals because they are closer to finishing expensive investment projects.
Chevron and Total, on the other hand, are both in the midst of large project spending cyclesand will need to tap into more debt in order to stay afloat.
While all companies are expected to keep paying high dividends by increasing borrowing,Exxon and Shell appear to be most able to cover both spending and dividend payouts if oilprices stay at current prices.
According to analysts at Jefferies, Exxon and Shell have 2015 breakevens of $75-$80/bbl,healthier than Chevron, BP and Eni's respective breakevens of $95, $100 and $120.
All of the big oil firms are expected to see negative cash flows this year, according toMoody's, and will turn to borrowing in order to cover costs.
Who will survive and who will fail? What are the ramifications for the economy and society ifworst-case scenarios come to fruition? What can our government do to avert the worst?
Ask refining CEOs and Board Members how they will respond when financials go negative.
Sincerely yours,
Doug Grandt