The U. S. ban on deepwater drilling is likely to pressurize many companies that have invested heavily in the Gulf of Mexico and Exxon Mobil doesn't expect to be one of them.

The business has spread oil production operation around the world. While it has a small footprint in the Gulf, Exxon's production will continue to be dominated by operations in Asia and Africa.

Even before lawmakers went cold on limiting greenhouse gases, investors were skeptical of the purchase. Between the announcement of the deal on Dec. 14 and second-quarter results, Exxon stock slid 16%.

Exxon’s huge outlay on XTO is starting to look questionable. With the benefit of hindsight, it may not have been the ideal time for Exxon to nearly triple its natural gas production in the United States.

Exxon’s better-than-expected $7.6 billion profit in the second quarter is a reminder that there is more to the company than XTO. Unlike ConocoPhillips, Exxon is continuing to lift output.

XTO may not deliver the plump returns on capital as Exxon shareholders have grown accustomed but the deal isn’t the total wipeout the loss of market value would suggest.

More than ever, the biggest investors are entrusting their money disproportionately to the largest hedge funds and may discover that bigger isn’t always better.

Research by PerTrac suggests that older and larger managers tend to deliver lower absolute returns than smaller and younger ones. But size and reputation are no guarantee of performance.

Exxon Vice President David Rosenthal spoke about the effect of the U. S. moratorium with analysts in a conference call.

Exxon is handling the drilling ban with some of the benefits of having a very diverse portfolio. There is a slight delay in the Gulf of Mexico, but the company is progressing at full speed ahead in the rest of the world.