Number 4 - ExxonMobil in the UK

More documents

Recommendations

Info

affected by the current decline in crude oil prices or the economic downturn. We are on track to invest between $25 billion and $30 billion dollars a year through 2012 – more than $125 billion. This reflects our proven approach to capital spending and the strength of our industry-leading portfolio of 119 projects, which are expected to bring on more than 24 billion oil-equivalent barrels of energy to U.S. and world markets. None of our projects relied on the very high oil prices we saw last summer, and in these uncertain economic times, ExxonMobil continues to do what it does best, regardless of the ups and downs of business cycles. We take a disciplined and long-term approach to investment to achieve industryleading returns and develop new supplies of energy that are vital for economic growth. Q: We hear that the oil companies are “sitting” upon millions of acres of domestic oil and gas leases that could be easily developed to supply even more needed energy to U.S. consumers. Is this true? A: It’s simply not true. If you think about it, it doesn’t make sense that anyone with commercially producible oil would sit on it. It costs millions of dollars to acquire and maintain leases, and many millions more to evaluate resource potential and develop new technologies to make production possible in increasingly challenging environments. The only way to recoup those investments is to produce hydrocarbons for sale. As I mentioned earlier, ExxonMobil’s capital investments are long-term in nature, and we invest steadily throughout all price and economic cycles. 13 A lease term is typically five or 10 years and must be relinquished if production or other activity doesn’t occur within a specified term. ExxonMobil is either producing or evaluating 78 percent of its leased acreage; most of the remainder that we’ve analyzed and deemed not prospective expires within the next 12 months, and will be available for re-leasing. Q: Climate change is an issue of ever-growing concern, and many believe that an approach to addressing it is through the increased development of alternative and renewable energy sources. What is ExxonMobil doing in this regard? A: We are working to provide the world with the energy it needs while reducing greenhouse-gas emissions. We take the issue of climate change seriously and the risks warrant action. So what are we doing? We are reducing greenhousegas emissions in our operations, helping consumers reduce their emissions, supporting research into technology breakthroughs and participating in constructive dialogue on policy options with NGOs, industry and policymakers. Our focus is to reduce emissions and improve efficiency. Since 2004 we have invested more than $1.5 billion in activities that reduce greenhouse-gas emissions and improve energy efficiency, and we will be spending at least $0.5 billion on additional initiatives over the next few years. In addition, we are spending more than $4 billion in gas utilization and commercialization projects to reduce routine natural gas flaring. We’re already seeing results. Through efficiency actions taken in 2006 and 2007, we reduced our greenhouse-gas emissions by about 5 million metric tons in 2007, equivalent to removing about 1 million cars from roads in the United States. Our strategy for alternatives and low-emissions energy technologies is twofold: First, we’ve developed a variety of technologies available today, such as tire liners that keep tires inflated longer, advanced fuel economy engine oil and lightweight automobile plastics. Use of technologies such as these in one-third of U.S. vehicles would translate to a savings of about 5 billion gallons of gasoline and greenhouse-gas emissions savings equal to taking about 8 million cars off the road. We are also working on other new technologies both for the mid- and longer term that address the need for both improved fuel economy and reduced emissions. For example, we developed an improved lithium battery separator film that could help launch the next generation of hybrid electric cars. We are involved in advanced engine research that could improve fuel economy by 30 percent. We are researching a way to generate hydrogen on board vehicles to power fuel cells that could improve fuel economy by 80 percent and reduce emissions by 45 percent. And we are investing more than $100 million in a new technology for separating carbon dioxide from natural gas, which could help commercialize applications for carbon capture and storage. Q: In your view, what are some important considerations that should be addressed if the country were to adopt a national policy on climate change? A: First and foremost, it should not place the United States at an economic disadvantage with respect to other nations. Given the global nature of the challenge
“ What’s very important is for policymakers to take into account all the cost and benefit options in developing programs for emissions reductions. ” and that developing countries will account for a significant portion of emission increases, any policy framework must encourage global engagement. In addition, ExxonMobil believes the best policies are ones that let market prices drive the selection of solutions, in part because markets are best at selecting and deploying new technologies. A uniform and predictable cost for carbon across the economy also will allow markets to work effectively, ensuring economic efficiency and the greatest reduction in emissions for the lowest cost. Administrative simplicity and transparency – for companies and consumers – are essential, and any sound policy must evolve and adjust as climate science develops and we see the impacts of climate policy on the economy. What’s very important is for policymakers to take into account all the cost and benefit options in developing programs for emissions reductions, whether they involve cap and trade, carbon tax or some other approach. ExxonMobil will continue to be a constructive participant in these dialogues. Q: Throughout the 110th Congress there were multiple proposals for increased taxes on the oil industry and, in fact, as part of the federal bailout package for Wall Street, $9 billion in additional taxes were levied. There is serious talk of imposing a windfall profits tax on oil and gas companies. ExxonMobil has, and obviously will, oppose such measures. Why? A: For every dollar we earn, we incur two and a half dollars in taxes that governments use to provide schools, roads, hospitals and other essential services. In the United States alone, our total tax obligations during the fiveyear period of 2003 to 2007 were $64.7 billion, exceeding our earnings from U.S. operations by $18.7 billion. Yet, unfortunately, some are proposing that new taxes should be imposed on American energy companies. There’s no question that additional punitive taxes will limit the industry’s ability to invest in new supplies, which conceivably could moderate price increases to To learn more exxonmobil.com/ election provide the economic stability we spoke about earlier. Punitive taxes don’t offer any sustainable, longterm solution to help develop new energy supplies. In fact, some of them, such as the windfall profits tax, have been tried in the 1980s, and they resulted in higher imports and reduced domestic production. the Lamp 14
Page 1 and 2: An ExxonMobil publication Aborigina
Page 3 and 4: Rex W. Tillerson Chairman and CEO M
Page 5 and 6: Photo by Mike Morrow Aboriginals ha
Page 7 and 8: Old rocks in new places Harnessing
Page 9 and 10: Access to domestic resources Some f
Page 11 and 12: optimal supply logistics, Antwerp w
Page 13: must work together to develop a sou
Page 17 and 18: Photo courtesy of Qatargas Bigger,
Page 19 and 20: In 2009, Cheng Shin Rubber Company,
Page 21 and 22: Greg Strickland, field foreman (abo
Page 23 and 24: A real joy Participants are selecte
Page 25 and 26: Julian Proddow, automotive marketin
Page 27 and 28: Deepwater exploration planned in Bl
Page 29 and 30: Chad project continues to generate
Page 31 and 32: Third-quarter earnings ExxonMobil

Number 4 - ExxonMobil in the UK

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?