Exxon Mobil CEO takes aim at environmentalists
Claudia Cattaneo, Financial Post
Thursday, May 29, 2008
DALLAS -- Rex Tillerson, chairman and chief executive of Exxon Mobil Corp., the world's largest oil-and-gas company, came out swinging Wednesday against the environmental movement, arguing the science of climate change is far from settled and that his company views it as its "corporate social responsibility" to continue to supply the world with fossil fuels.
Speaking to reporters after the annual meeting of shareholders, at which much-publicized proposals by the Rockefeller family calling for new investment in renewable energy received little support, Mr. Tillerson also said he expects little delay in the $8-billion Kearl oilsands project in Alberta, after a court challenge by environmental organizations this month resulted in the withdrawal of a key federal permit, halting important work.
"I am optimistic that the permit will be restored and we'll be able to get back on track with very little loss to the schedule," he said. "My understanding is that the project ... has been given a very high priority by the government of Canada and is moving along at a fairly rapid pace." Exxon Mobil owns Kearl with its Canadian affiliate, Imperial Oil Ltd.
Avoiding the political correctness that many oil executives are now showing on global warming, Mr. Tillerson called for a continuation of the debate, rather than acceptance that it is occurring, with the potential consequence that governments will implement policies that put world economies at risk.
"My view is that this is so extraordinarily important to people the world over, that to not have a debate on it is irresponsible," he said. "To suggest that we know everything we need to know about these issues is irresponsible.
"And I will take all the criticism that comes with it. Anybody that tells you that they got this figured out is not being truthful. There are too many complexities around climate science for anybody to fully understand all of the causes and effects and consequences of what you may chose to do to attempt to affect that. We have to let scientists to continue their investigative work, unencumbered by political influences. This is too important to be cute with it."
Mr. Tillerson said Exxon Mobil, despite its reputation as a staunch climate change denier, is in fact close to the issue as the only oil company that is a member of the United Nations Intergovernmental Panel on Climate Change.
Exxon Mobil came under repeated attack during the rowdy meeting for not showing leadership to combat global warming, with some arguing it is putting shareholders' capital at risk by not moving into greener energy.
Among the many critics who stood up in the city's Morton H. Meyerson Symphony Centre, where the meeting was held, was Neva Rockefeller Goodwin, the great-granddaughtger of John D. Rockefeller, who founded Exxon's predecessor 125 years ago.
But her proposal to have Exxon Mobil prepare a report on the impact of climate change on emerging countries and to embrace greener energy was backed by only 10.4% of shareholders.
Another proposal, also supported by the family, to split the role of chairman and CEO in the hope it will encourage a more favourable view of energy alternatives was supported by 39.5%.
Mr. Tillerson said Exxon Mobil, with 14,000 engineers and scientists on the payroll, is already investing billions to manage the environmental impact of its operations, become more energy-efficient and support research to help consumers use less energy.
Looking out 25 to 30 years, "everyone agrees that notwithstanding the growth in all other options for supplying energy, renewables, nuclear, biomass alternatives, you are still going to require substantial fossil fuels to meet energy needs, and two-thirds is going to come from oil and natural gas," he said.
Mr. Tillerson said he is encouraged by efforts to move forward the $16.2-billion Mackenzie Gas Project in Canada's Arctic. Those involved are still investigating ways it can be structured to better manage upfront risk, he said.
Financial Post
