I learned in meetings yesterday that some staff may still have my letters in their inbox or otherwise may not be sharing my letters with Senators. I will encourage sharing by adding the PERSONAL stamp and a hand-written note referencing the June 9 hearing (the 4th of 4 hearings before proposed legislation goes to the floor of the Senate after the August recess) on "Energy Accountability and Reform Legislation” (http://bit.ly/ENR9June15Hearing). This will be the last opportunity for testimony including any mention of my concerns. Recipients include Lisa Murkowski (Chairman), Lamar Alexander, John Barrasso, Shelley Capito, Bill Cassidy, Steve Daines, Jeff Flake, Cory Gardiner, John Hoeven, Mike Lee, Rob Portman, James E. Risch, Maria Cantwell (Ranking Member), Al Franken, Martin Heinrich, Mazie Hirono, Joe Manchin, Debbie Stabenow, Elizabeth Warren, Ron Wyden, Bernie Sanders and Angus King.
Original Title
29 May 2015 Letter to Senate Committee on Energy & Natural Resources (PERSONAL)
I learned in meetings yesterday that some staff may still have my letters in their inbox or otherwise may not be sharing my letters with Senators. I will encourage sharing by adding the PERSONAL stamp and a hand-written note referencing the June 9 hearing (the 4th of 4 hearings before proposed legislation goes to the floor of the Senate after the August recess) on "Energy Accountability and Reform Legislation” (http://bit.ly/ENR9June15Hearing). This will be the last opportunity for testimony including any mention of my concerns. Recipients include Lisa Murkowski (Chairman), Lamar Alexander, John Barrasso, Shelley Capito, Bill Cassidy, Steve Daines, Jeff Flake, Cory Gardiner, John Hoeven, Mike Lee, Rob Portman, James E. Risch, Maria Cantwell (Ranking Member), Al Franken, Martin Heinrich, Mazie Hirono, Joe Manchin, Debbie Stabenow, Elizabeth Warren, Ron Wyden, Bernie Sanders and Angus King.
I learned in meetings yesterday that some staff may still have my letters in their inbox or otherwise may not be sharing my letters with Senators. I will encourage sharing by adding the PERSONAL stamp and a hand-written note referencing the June 9 hearing (the 4th of 4 hearings before proposed legislation goes to the floor of the Senate after the August recess) on "Energy Accountability and Reform Legislation” (http://bit.ly/ENR9June15Hearing). This will be the last opportunity for testimony including any mention of my concerns. Recipients include Lisa Murkowski (Chairman), Lamar Alexander, John Barrasso, Shelley Capito, Bill Cassidy, Steve Daines, Jeff Flake, Cory Gardiner, John Hoeven, Mike Lee, Rob Portman, James E. Risch, Maria Cantwell (Ranking Member), Al Franken, Martin Heinrich, Mazie Hirono, Joe Manchin, Debbie Stabenow, Elizabeth Warren, Ron Wyden, Bernie Sanders and Angus King.
PO Box 6603 Lincoln, NE 68506 (510) 432-1452 May 29, 2015
Senate Committee on Energy and Natural Resources
304 Dirksen Senate Office Building Washington, D.C. 20510 Re: Oil Refining - Considering future eventualities versus the myopia of the present (letter #13) Dear ENR Staff, I am gravely concerned for the U.S. economy and social stability in the plausible event that oil companies become unprofitable and are forced to close down operations as a result of cash flow and insolvency issues that result from sustained low price levels for petroleum (crude oil). What I fear is an unexpected (if not unforeseen) scenario in which financial strength of large oil companies declineinsufficient to buy the assets of failed companies, leaving a precipitous gap between supply and demand of fuels. Their financial stability is already at a cross-roads. For the sake of national security and true energy independence, we need to be watchful and safeguard the vitality of U.S. oil companies as national resourcesas national treasures. We must assess the likelihood that U.S. oil companies will remain in business as the global price of crude oil remains low in a worst case scenario. We must prepare for the eventuality that an economic house of cards could come crashing down, taking stock markets down in a general panic as happened in 2002 and 2008. Pensions and life-savings are in jeopardy for people in all demographics if a collapse of the oil production and refining industry were to occur. The oil companies have economic models, which have the capability to evaluate and plan for what if scenarios. I believe that it would be in the national interest for the Senate Committee on Energy and Natural Resources to understand the sensitivity of each oil companys business plan to sustained low crude oil prices, and to assess the downside potential destruction to our economy in the worst case scenarios of plausible worldwide oil market environments. In the public interest, I ask the ENR Committee to convene a series of hearings for the purpose of investigating U.S. petroleum production and refining corporations in depth as to how they envision sustaining operations while profitability wanes and insolvency spreads. How do they envision winding down operations as they struggle to fulfill their fiduciary duty to investors when prudent businessmen would be curtailing unprofitable operations. Such scenarios are plausible and we must prepare to respond in order to avert the devastation of the worst case scenarios. Therefore, please call upon Chevron CEO John S. Watson, ConocoPhillips CEO Ryan Lance, Enterprise Products CEO, Michael A. Creel, ExxonMobil CEO Rex W. Tillerson, Flint Hills Resources CEO Bradley J. Razook, Hess CEO John B. Hess, Marathon CEO Lee M. Tillman, Murphy Oil CEO Roger W. Jenkins, Sunoco CEO Robert W. Owens, Tesoro CEO Gregory J. Goff, Valero CEO Joseph W. Gorder, World Fuel Services CEO Michael J. Kasbar, and others as may be required to get a diverse assessment of the entire spectrum of the industrys vision. Sincerely yours,