Exxon’s deal with Russian energy company Rosneft to tap arctic oil fields comes with a bonus for the Russians. Exxon will teach the state-owned company how to frack in order to gain access to previously untapped oil reserves in Siberia. From the Dallas Morning News:
The Rosneft deal also shows how Exxon can turn its $41 billion purchase of Fort Worth’s XTO Energy into key a bargaining chip to get access to oil fields around the world. XTO developed technology to draw natural gas out of tight shale rock in North Texas, and has applied the technology to oil and gas elsewhere.
Exxon recently increased its natural gas reserves in Pennsylvania’s Marcellus Shale. In June, the oil giant purchased more than 300,000 acres in the Marcellus Shale play from smaller independent companies. Last year, Exxon acquired XTO Energy.