Isramart : Exxon chief praises natural gas in face of carbon tax

Isramart news:
Exxon Mobil Corp's chairman and chief executive Rex Tillerson has outlined some of the benefits associated with the growing role of gas, in the wake of yesterday's announcement that it will buy XTO Energy Inc in an all-stock deal valued at about $US30 billion ($A32.8 billion).

The largest publicly-traded energy company is focused on a growing role for gas, which will make up 45 per cent of Exxon's production if the deal goes ahead, The Australian reported.

Mr Tillerson said that natural gas looked set to have an advantage over other fuels at such time as a price is fixed on carbon emissions.

He signalled an aim for the company to open a new business to develop less conventional gas resources once the takeover is completed.

Exxon's views on the benefits of gas in an energy market whose future will be constrained by carbon caps reflect similar moves by Santos Ltd and Origin Energy Ltd to boost gas production and exports, according to the paper.

With the acquisition of XTO, Exxon will become the top US natural gas producer as it bets on natural gas expanding its share in the world's largest energy market.

The deal is valued at $US41 billion, including about $US10 billion in XTO debt, and is based on the December 11 closing share prices of the two companies.