We know President Obama is going to tax the rich, but I bet many didn’t think he would weasel in the carbon tax as quickly as he is going to now.
A Romney win would have been bullish for coal producers in the US – but Romney lost, and now so has coal, at least in the near term. The biggest winner from Obama? Natural gas.
Exxon Mobil Corp (XOM) is now supporting Obama in bringing a carbon tax to the US. Why would Exxon – and other big energy companies – join forces to bring on the carbon tax?
The answer is simple: profits.
Exxon has made significant purchases, buying unconventional North American gas companies. For example, it recently bought Canadian firm Celtic Exploration for over C$2.5 billion.
Let’s not forget that a couple of years back, Exxon bought out XTO Energy for over US$30 billion.
How much pull does Exxon have in Washington, DC? Exxon has one of the largest lobbying groups on Capitol Hill. And how ironic: Exxon is also one of the largest holdings for all of the US Congress members.
Exxon has always had clout in Washington and always will. Exxon is one of the former Rockefeller oil companies… one that has now positioned itself as one of the dominant unconventional North American companies.