ExxonMobil and Abu Dhabi
ExxonMobil and Abu Dhabi
ExxonMobil and Abu Dhabi
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21<br />
Healthy energy industry key to economic<br />
<strong>ExxonMobil</strong> Senior Vice<br />
President Mike Dolan<br />
spoke at Cambridge<br />
Energy Research<br />
Associates’ CERAWeek<br />
conference in Houston in<br />
February. He emphasized<br />
that the energy industry<br />
can play a critical role<br />
in rebuilding confidence<br />
amid today’s challenging<br />
economic times.<br />
Story by Mike Long Illustration by Pat Gabriel<br />
The energy industry’s role in<br />
managing risk <strong>and</strong> helping to<br />
restore economic confidence<br />
will be paramount as the world<br />
continues to face economic<br />
uncertainty, <strong>ExxonMobil</strong> Senior<br />
Vice President Mike Dolan told<br />
attendees in a keynote speech<br />
at the 2009 CERAWeek.<br />
Equally clear, said Dolan, will<br />
be the importance of energy<br />
policies that encourage investment,<br />
reduce risks <strong>and</strong> focus on<br />
the long term.<br />
Industry excels<br />
in risk management<br />
Dolan explained that the energy<br />
industry has a long history of<br />
managing risk effectively.<br />
“Each day, energy companies<br />
manage a variety of risks – operational<br />
risks, technological risks<br />
as well as risks related to project<br />
investments <strong>and</strong> the ups <strong>and</strong><br />
downs of commodity prices,” he<br />
said. “The fact that these risks<br />
go largely unnoticed by consumers<br />
is a testament to our industry’s<br />
success <strong>and</strong> reliability.”<br />
Since July 2008, crude oil has<br />
dropped in value from a record<br />
of nearly $150 a barrel to around<br />
$40 in the first quarter of this<br />
year. Dolan said few industries<br />
could weather such a steep <strong>and</strong><br />
sudden decline in the value of<br />
their core commodity.<br />
The fact that the energy<br />
industry is managing this<br />
volatility testifies to its long-term<br />
planning <strong>and</strong> effective risk management.<br />
At the same time, it<br />
continues to provide affordable<br />
energy to consumers around the<br />
globe, while generating billions<br />
in government revenues <strong>and</strong><br />
shareholder returns.<br />
“<strong>ExxonMobil</strong>, for example,<br />
had total tax expenses of nearly<br />
$65 billion in the United States<br />
between 2002 <strong>and</strong> 2007,<br />
exceeding our U.S. earnings by<br />
almost $20 billion during that<br />
time,” said Dolan. “For the same<br />
period, our dividends <strong>and</strong> sharebuyback<br />
programs put nearly<br />
$118 billion into the h<strong>and</strong>s of<br />
pension holders <strong>and</strong> investors,<br />
the great majority of whom are in<br />
the United States.”<br />
The industry supports nearly<br />
6 million jobs in the United States<br />
alone. It is also a major employer<br />
<strong>and</strong> investor in human capital<br />
around the world.<br />
“These facts – combined with<br />
our ongoing investments in new<br />
energy sources <strong>and</strong> new technologies<br />
– make it clear that a healthy<br />
energy sector will be critical to<br />
reigniting economic growth.”<br />
A two-part energy challenge<br />
Dolan added that the industry<br />
must also focus on the dual<br />
energy challenge facing the world<br />
over the long term – meeting