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From: Douglas Grandt answerthecall@me.

com
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

Billions of Dollars of Bad Oil & Gas Loans

"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

Dear Colin and Angela,


.
This is the third of three poignant articles that I discovered over the weekend.
Please read and take note of the implications of Laura Freemans assessment.
Ask yourself frankly whether there is any consideration for this risk in S.1460.
.
If there is even a remote possibility or if it is plausible, any energy bill must include
contingencies and preparations to act in the event that the petroleum industry runs
headlong into disaster. We must be forewarned of the dangers and the remedies.
.
Oil companies exercising fiduciary duty in the face of debt default, insolvency and
bankruptcy is a predictable scenario, and avoidable if dealt with responsibly. This is
not like Hurricanes Harvey, Irma and Maria bearing down on Puerto Rico who was
unable to avert the worst case scenario, and who is dealing with the aftermath.
.
You have the opportunity and responsibility to avert the worst case scenario.
.
Sincerely yours,
Doug Grandt
Who is kidding whom? Is it intentional or inadvertent?
http://www.ogfj.com/articles/print/volume-14/issue-9/departments/capital-
perspectives/billions-of-dollars-of-bad-oil-and-gas-loans.html