Rex Wayne Tillerson

Rex Wayne Tillerson
Research Report
1.6.17
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Overview ............................................................................................................................... 51
Top Hits .................................................................................................................................. 7
Foreign Policy ......................................................................................................................... 7
Opposed U.S. Foreign Interests At Exxon ................................................................................................... 7
Did Business With State Sponsors of Terrorism; Expressed Openness To Doing It Again....................... 9
Close Ties to Russia and Putin ................................................................................................................... 14
Human Rights And Corporate Responsibility ..................................................................... 18
Displayed Indifference To Human Rights At Exxon ................................................................................. 18
Favors Profits Over All Else ....................................................................................................................... 20
Avoided Paying Exxon-Valdez Spill Damages .......................................................................................... 22
Stiffed New Jersey On Brownfield Settlement ........................................................................................... 25
Troubling Response To Gulf Oil Spill ....................................................................................................... 26
Argued in Favor of Tax Subsidies for Oil Companies ............................................................................... 28
Personal Top Hits ................................................................................................................. 29
Took Advantage Tax Breaks Normally Reserved for Farmers to Avoid Taxes on two of his Multi-Million
Dollar Properties ......................................................................................................................................... 29
Tillerson, A Fracking Proponent, Joined A “NIMBY” Lawsuit Against Frackign Near His Ranch ....... 32
Issues Top Hits ..................................................................................................................... 35
Supported Troubled Asset Relief Program (TARP) .................................................................................. 35
Climate Change Denier .............................................................................................................................. 35
Opposed American Energy Independence ................................................................................................ 38
Opposed Alternative Energy Development ............................................................................................... 40
Opposed LGBT Rights .............................................................................................................................. 42
Conflicts With Trump And The Right Wing ........................................................................ 43
Conflict With Trump: Tillerson Is A Free Market Globalist ...................................................................... 43
Hits From The Right .................................................................................................................................. 47
Biography and Background .................................................................................................. 51
Childhood and Education .......................................................................................................................... 52
Family ......................................................................................................................................................... 55
Religion ....................................................................................................................................................... 58
Ideology ...................................................................................................................................................... 59
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Hobbies ...................................................................................................................................................... 59
Awards ........................................................................................................................................................ 59
Tillerson’s Corporate & Non-Profit Executive Affiliations ....................................................................... 60
Organizations .............................................................................................................................................. 61
BOY SCOUTS OF AMERICA ................................................................................................................... 62
ELECTORAL PARTICIPATION ....................................................................................... 64
Tillerson’s Voting History .......................................................................................................................... 64
Wealth ................................................................................................................................... 65
Overview ..................................................................................................................................................... 65
Tillerson’s Wealth Criticism ....................................................................................................................... 66
Tillerson On His Wealth ............................................................................................................................ 67
Investments, Assets And Earned Income .................................................................................................. 67
Positions Held Outside U.S. Government ................................................................................................. 72
Personal Real Estate Property .................................................................................................................... 73
Personal Litigation ................................................................................................................ 89
Personal Litigation ..................................................................................................................................... 89
2014: Fracking “Nimby” Lawsuit ............................................................................................................... 89
EXXONMOBIL (1975 – PRESENT) ................................................................................... 91
From Engineer To CEO ............................................................................................................................. 92
Shareholder Relations ................................................................................................................................. 97
Oil Spills ..................................................................................................................................................... 100
Defense of Record Profits .......................................................................................................................... 104
Major Litigation ......................................................................................................................................... 107
2016 Credit Downgrade By S&P ................................................................................................................ 116
Lobbying .................................................................................................................................................... 116
Labor Practices .......................................................................................................................................... 117
1990s – Present: Sakhalin Island ................................................................................................................ 118
2003: Attempted Yukos Deal ..................................................................................................................... 120
2006 – 2007: Withdrawal From Venezuela ................................................................................................. 121
2009: XTO Energy Merger ........................................................................................................................ 124
2010-2013: Kurdistan Deal .......................................................................................................................... 127
2011 – Present: Rosneft Partnership .......................................................................................................... 130
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Other Notable Projects Under Tillerson ................................................................................................... 138
Exxon’s Foreign Policy ............................................................................................................................. 150
Questionable Relationships With Foreign Governments ......................................................................... 154
Tillerson Did Business With State Sponsors of Terrorism; Expressed Openness To Doing It Again .... 161
Campaign Finance ............................................................................................................... 166
Jeb Bush ..................................................................................................................................................... 166
Political Campaign Contributions ............................................................................................................. 166
Relationship With Russia and Vladimir Putin ..................................................................... 169
Vladimir Putin ........................................................................................................................................... 170
Igor Sechin ................................................................................................................................................. 174
Russian Government ................................................................................................................................. 177
Relationship with Russian State-Owned Oil Compay, Rosneft ............................................................... 189
Potential Conflicts as Secretary of State .................................................................................................... 201
Relationships With Individuals .......................................................................................... 204
George W. Bush ......................................................................................................................................... 204
Lee Raymond ............................................................................................................................................. 205
BP CEO John Browne ............................................................................................................................... 205
Sarah Palin ................................................................................................................................................. 205
Mitt Romney .............................................................................................................................................. 206
Barack Obama ........................................................................................................................................... 206
Prince Abdullah of Saudi Arabia ............................................................................................................... 207
President Nursultan Nazarbayev of Kazakhstan ...................................................................................... 207
Muammar Gaddafi .................................................................................................................................... 208
Nigerian President Umaru Musa Yar’Adua .............................................................................................. 208
Nigerian President Goodluck Jonathan .................................................................................................... 209
The Clintons .............................................................................................................................................. 209
Jeb Bush ..................................................................................................................................................... 209
Donald Trump ........................................................................................................................................... 209
Relationship With Groups ................................................................................................... 211
Argentine Government .............................................................................................................................. 211
Libyan Government ................................................................................................................................... 211
Mexican Government ................................................................................................................................ 211
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Kazakstani Government ............................................................................................................................ 211
Yemeni Government .................................................................................................................................. 212
U.S.-Russia Business Council ................................................................................................................... 212
Iraqi Government ...................................................................................................................................... 213
British Petroleum ....................................................................................................................................... 213
Issues ................................................................................................................................... 214
Banking and Finance ........................................................................................................... 214
Bailouts ...................................................................................................................................................... 214
Troubled Asset Relief Program (TARP) ................................................................................................... 215
Business and Jobs ................................................................................................................ 215
CEO Pay .................................................................................................................................................... 215
Auto Rescue ............................................................................................................................................... 216
Education ............................................................................................................................. 218
Education, Generally ................................................................................................................................. 218
STEM Education ....................................................................................................................................... 218
Race to the Top ......................................................................................................................................... 219
Common Core ............................................................................................................................................ 219
ENERGY AND THE ENVIRONMENT ......................................................................... 222
Alternative Energy, Generally .................................................................................................................... 222
Energy Efficiency ...................................................................................................................................... 227
Cap And Trade........................................................................................................................................... 228
Carbon Tax ................................................................................................................................................ 229
Climate Change ......................................................................................................................................... 230
Kyoto Protocol ........................................................................................................................................... 245
Greenhouse Gas Emissions ....................................................................................................................... 246
Keystone XL............................................................................................................................................... 246
Mackenzie Valley Pipeline ........................................................................................................................ 247
TransCanada Pipeline ............................................................................................................................... 248
Coal ............................................................................................................................................................ 248
Natural Gas ................................................................................................................................................ 249
Federal Land .............................................................................................................................................. 258
Oil and Gas Industry ................................................................................................................................. 261
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Paris Climate Accord ................................................................................................................................. 272
BP Horizon Oil Spill .................................................................................................................................. 273
Wind ........................................................................................................................................................... 273
Foreign Policy and International Trade ............................................................................. 273
Foreign Policy, Generally .......................................................................................................................... 274
Trade, Generally ........................................................................................................................................ 275
Trans-Pacific Partnership .......................................................................................................................... 278
NAFTA ...................................................................................................................................................... 279
Human Rights ........................................................................................................................................... 279
China .......................................................................................................................................................... 280
Brazil .......................................................................................................................................................... 280
Iran ............................................................................................................................................................. 281
Libya .......................................................................................................................................................... 281
Iraq ............................................................................................................................................................. 282
Saudi Arabia ............................................................................................................................................... 283
Russia ......................................................................................................................................................... 283
Qatar .......................................................................................................................................................... 285
Niger Delta ................................................................................................................................................ 286
Venezuela ................................................................................................................................................... 287
Government and Campaign Reform ................................................................................... 288
Campaign Finance .................................................................................................................................... 288
Tax Reform ................................................................................................................................................ 289
Regulations, Generally .............................................................................................................................. 290
Labor ................................................................................................................................... 292
Exxon’s Treatment of Workers ................................................................................................................. 292
LGBTQ ............................................................................................................................... 293
Discrimination ........................................................................................................................................... 293
Boy Scouts ................................................................................................................................................. 293
Taxes ................................................................................................................................... 295
Tax Pledges ............................................................................................................................................... 295
Windfall Profits Tax ................................................................................................................................... 295
Energy Subsidies ....................................................................................................................................... 297
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TOP HITS
FOREIGN POLICY
Opposed U.S. Foreign Interests At Exxon
Tillerson pursued a global business strategy at Exxon that explicitly disregarded U.S. foreign interests and at times actively
opposed it:
Tillerson and his predecessor made clear that Exxon’s role isn’t to represent or align itself with U.S. foreign policy, saying
once, “I'm not the U.S. government… I'm not here to represent the U.S. government's interest.”
Under Tillerson, Exxon undermined the U.S. policy of “One Iraq” by entering into contracts with the Kurdish regional
government independently of Iraq’s central government, and expressed no regret for defying U.S. interests.
Under Tillerson Exxon also entered into several lucrative deals with America’s chief geo-political adversary, Russia.
Tillerson was a vocal critic of U.S. sanctions against Russia and lobbied to remove them.
TILLERSON AND HIS PREDECESSOR: EXXON’S ISN’T HERE TO REPRESENT
THE U.S. OR ALIGN ITSELF WITH U.S. FOREIGN POLICY
Rex Tillerson Said He Stresses To Foreign Governments: “I'm Not Here To Represent The U.S. Government's
Interest. I'm Not Here To Defend It, Nor Am I Here To Criticize It. That's Not What I Do I'm A Business Man.”
According to U Texas BBA, TILLERSON: "Well one of the things that I learned early on when I began to work overseas in
foreign assignments is and this is not true of all of my competitors, not saying necessarily my U.S. competitors but my foreign
competitors, was to make sure that host governments, resource owners, whether it's Russia or Yemen--wherever the Middle
East. Make sure that they understand I'm not the U.S. government. I am an American company and I will be bound by the
laws of the United States and other countries, and I'm gonna follow those laws. But I'm not here to represent the U.S.
government's interest. I'm not here to defend it, nor am I here to criticize it. That's not what I do I'm a business man.” [Rex
Tillerson at U Texas BBA, 2/18/16]
Rex Tillerson: “My Philosophy Is To Make Money. And So If I Can Drill, And Make Money, Then That`s What
I Want To Do.” According to the Charlie Rose Show, “CHARLIE ROSE: In terms of drilling, whether it`s Alaska or
offshore or wherever it might be, is your phi-losophy "drill, baby, drill"? REX TILLERSON: No, my philosophy is to
make money. And so if I can drill, and make money, then that`s what I want to do. But it really is for us it`s about making
quality investments for our shareholders. And it`s not a quality investment if you cannot manage the risk around it. And
so part of that decision to undertake whether it`s a drilling program or an investment program in some other country, we
have to have a very good understanding of what risk are we dealing with, how are we going to manage those. Because you
may have a fabulous opportunity but if you manage the risk.” [Charlie Rose Show, 3/7/13]
Lee Raymond, Rex Tillerson’s Predecessor, Allegedly Insisted That ExxonMobil Was Not A U.S. Company And
His Decisions Were Not Based On What Was Good For The U.S. According to Private Empire: ExxonMobil and American
Power, “ExxonMobil’s interests were global, not national. Once, at an industry meeting in Washington, an executive present
asked Raymond whether Exxon might build more refineries inside the United States, to help protect the country against
potential gasoline shortages. ‘Why would I want to do that?’ Raymond asked, as the executive recalled it. ‘Because the United
States needs it . . . for security,’ the executive replied. ‘I’m not a U.S. company and I don’t make decisions based on what’s
good for the U.S.,’ Raymond said.” [Private Empire: ExxonMobil and American Power, pg. 71, 2012]
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UNDER TILLERSON, EXXON SIGNED AN AGREEMENT THAT UNDERMINED
U.S. INTERESTS IN IRAQ
Exxon’s Agreement With The Kurdistan Regional Government Undermined The Goal Of “One Iraq” Eliminating
Iraqi Kurdistan’s Dependence On Iraq’s Shared Oil Revenue. According to Reuters, “Despite the anger, the deal was a
political triumph for the Kurds. Exxon had shown Arbil could attract oil majors regardless of what Baghdad thought.
Hawrami unveiled the deal at an Arbil energy conference in late 2011. Kurdistan had initially signed contracts with ‘small and
beautiful’ companies, he said. Now it was working with ‘the giant and magnificent.’ Within a few months, both Chevron and
Total signed deals, further strengthening Kurdistan. A pact with Russia’s Gazprom followed. ‘What really binds Kurdistan to
Baghdad is money,’ said Robert Ford, who retired from his post as U.S. ambassador to Syria in February and previously served
three stints for the State Department in Iraq. ‘The more the Kurds have an independent source of income, especially from
energy, the more it feeds into their desire to establish greater autonomy if not independence from Baghdad.’” [Reuters,
12/3/14]
New York Times: Rex Tillerson “Defied State Department Policy And Cut An Independent Oil Deal With The
Kurdish Regional Government, Undermining The National Iraqi Government In Baghdad.” According to the New
Yorker, “In Kurdistan, during the Obama Administration, Tillerson defied State Department policy and cut an independent oil
deal with the Kurdish Regional Government, undermining the national Iraqi government in Baghdad. ExxonMobil did not ask
permission. After the fact, Tillerson arranged a conference call with State Department officials and explained his actions,
according to my sources, by saying, ‘I had to do what was best for my shareholders.’” [New Yorker, 12/11/16]
Exxon Defied The U.S. Government And Privately Made Deals In Kurdistan, Which Felt Oil Deals Struck
Independently With The Kurds Would Worsen Iraq’s Ethnic Conflicts. According to Private Empire: ExxonMobil and
American Power, “In Iraq, ExxonMobil followed adventurous Hunt Oil into Kurdistan, in defiance of Baghdad’ s government
and despite discouragement from the Obama administration, which feared, as the Bush administration had, that oil deals
struck independently with the Kurds would worsen Iraq’s ethnic conflicts. ExxonMobil ‘s decision risked stirring the ire of
Iraq’s Shia-led national government, which had awarded the corporation a con­ tract to raise production in its massive West
Qurna field in the south of the country.” [Private Empire: ExxonMobil and American Power, pg. 622, 2012]
Tillerson Said He Had No Regret For Undermining U.S. Interests Via The Kurdish Deal
Concerning Deals Made Secretly With Kurdistan, Tillerson Told The U.S. Government, “I Had To Do What Was
Best For My Shareholders.” According to Private Empire: ExxonMobil and American Power, “Tillerson undertook his gambit
without informing the Obama administration in advance. After ExxonMobil signed agreements concerning six Kurdish oil
fields, Tillerson arranged a conference call with senior State Department officials, and told them, ‘I had to do what was best
for my shareholders.’” [Private Empire: ExxonMobil and American Power, pg. 623, 2012]
UNDER TILLERSON, EXXON DID BUSINESS WITH VLADIMIR PUTIN’S
GOVERNMENT
Exxon’s Sakhalin-1 Project Had An Estimated Direct Benefit To The Russian Federation Of Approximately $25
Billion As Of April 2012. According to Fair Disclosure, “Sakhalin-1 project in Russia is example of type of investments
needed to expand energy supplies critical to advancing economies and raising living standards. 3. Sakhalin-1, one of the largest
foreign investments in Russia, delivered significant value to Russia and global economy. 1. Total estimated direct benefit todate
to Russian Federation is approx. $25b. 3. XOM and Rosneft along with co-ventures have worked together for more than
15 years in area characterized by remoteness and climate conditions that many believe would preclude successful exploration
and production.” [Fair Disclosure, 4/18/12]
Rex Tillerson And Vladimir Putin Met In Sochi To Announce $3.2 Billion Investment By Exxon And Russia’s
Rosneft To Drill In The Arctic Kara Sea, With Possible Future Investment Reaching $500 Billion. According to Private
Empire: ExxonMobil and American Power, In Russia, later that summer, Rex Tillerson flew to the Black Sea resort of Sochi to
meet with Vladimir Putin. Before television cameras, the two men sat on opposite sides of a horseshoe-shaped table and
announced a new partnership between ExxonMobil and Rosneft, the Russian oil company. The oil firms agreed to invest at
least $3.2 billion to develop oil beneath the Arctic Kara Sea; if the deal survived the backtracking and disputes that disrupted
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so many other Russian oil deals, the total investment in the project could reach $500 billion . The United States Geo­ logical
Survey estimated that the Arctic held about 90 billion barrels of recoverable but undiscovered oil and about as much natural
gas as Russia’s onshore supplies, which were the world’s largest.” [Private Empire: ExxonMobil and American Power, pg. 621,
2012]
TILLERSON VOCALLY OPPOSED AND LOBBIED AGAINST U.S. SANCTIONS
AGAINST RUSSIA
2014: Rex Tillerson Said ExxonMobil Opposed U.S. Sanctions Against Russia. According to Russian Oil Refining
Industry, “Partner "Rosneft" US oil giant ExxonMobil Corp (one of the world's largest companies by market capitalization)
does not support US sanctions against Russia, Reuters reported with reference to the general director of Exxon, Rex Tillerson.
At the head of the Ministry of Energy and "Rosneft" last week, whose head Igor Sechin was in May, in the sanctions list USA
as a person from an environment of the president of Russia, said that ExxonMobil is in Russia, where develops one of the
largest for themselves overseas projects - Sakhalin-1 . "We are extremely proud of our achievements in Russia we them good
partners." - said Tillerson. Several Western oil companies in recent years have left Russia because of the deterioration of the
business climate, but Exxon continues to work like other giants, including British BP (has a 19.75% stake in "Rosneft") and
French Total.” [Russian Oil Refining Industry, 5/30/14]
Rex Tillerson Lobbied Against U.S. Sanctions On Russia After Russia Invaded Ukraine And Seized The Crimean
Peninsula. According to the Los Angeles Times, “When Russian forces invaded Ukraine and seized the Crimean peninsula in
2014, Tillerson lobbied against U.S. sanctions because Exxon would lose millions of dollars. The Obama administration, with
congressional backing, imposed the sanctions on Russia anyway, and Exxon was forced to abandon projects estimated to have
cost it about $1 billion.” [Los Angeles Times, 12/11/16]
Did Business With State Sponsors of Terrorism; Expressed Openness To Doing
It Again
ExxonMobil CEO Rex Tillerson’s business ties create dangerous conflicts of interest in some of the most difficult places in
the world. Exxon’s history of business relationships with state sponsors of terrorism, including Iran, Syria, and Sudan threaten
to cloud Tillerson’s judgement on American foreign policy. Tillerson and Exxon have consistently opposed economic
sanctions against Iran, and expressed a desire to reopen Iran to oil investments, where Exxon previously maintained some of
its most lucrative assets.
During Tillerson’s time as President of ExxonMobil, the corporation maintained business relationships with national and
private customers in Iran, Syria, and Sudan. Through joint ventures and affiliates yearly sales with Iranian customers between
2003 and 2005 numbered in the tens of millions of dollars.
As recently as March 2016, Tillerson has verbalized his openness to investing in Iran. At the helm of America’s foreign policy,
it is easy to see how Tillerson’s financial ties to ExxonMobil could inhibit reasonable decision-making over the future of the
United States’ approach to one of our most dangerous adversaries.
UNDER TILLERSON’S LEADERSHIP EXXON JOINT VENTURE AND
AFFILIATES HAD SALES WITH IRAN
Exxon Joint Venture Made Millions in Sales in Iran, Including With the Iranian National Oil Company
Until 2006, An Exxon Joint Venture Sold Gasoline Additives to Iran. According to the New York Times, "Infineum
U.K., a joint venture in which ExxonMobil has a 50 percent indirect ownership, sold gasoline additives to Iran, but stopped in
2006, according to Cynthia Bergman White, company spokeswoman. Exxon is a big supplier of fuel to the Department of
Defense." [New York Times, 2010]
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Exxon Joint Venture Had $53.2 Million In Sales To Iran Between 2003 And 2005. According to a February 7, 2006 letter
from Exxon to the Securities and Exchange Commission, “In addition, we have a 50% interest in Infineum, a chemicals joint
venture with Shell. We each own a 50% interest in the joint venture through respective European subsidiaries. However,
Infineum's European affiliates manage the business transactions in the Three Countries under a policy and procedure
consistent with U.S. legal requirements and no United States person is involved in those business transactions. Infineum's
European affiliates had sales to entities in the Three Countries as follows:
Country 2003 2004 2005
(millions of dollars)
Iran $20.5 $16.6 $16.1
Sudan $0.3 $0.3 $0.0
Syria $0.3 $0.6 $0.2
[Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon Joint Venture Did Business With The Iranian National Oil Company. According to a July 14, 2006 letter
from Exxon to the Securities and Exchange Commission, “With respect to Iran, all but one of the customers of
Infineum were private entities to the best of our knowledge. The exception was a customer which is wholly-owned by
the Iranian National Oil Company. With respect to Syria, all of the customers were private entities to the best of our
knowledge. Infineum sales were fuel and lubricant additives developed for use in internal combustion engines. To the
best of our knowledge the additives sold to entities in Iran and Syria were blended into fuels and lubricants used in
motor vehicles. Infineum is not aware of these additives having been used in military applications. All of these sales
were legal under the applicable U. S. laws and regulations.” [Exxon letter to the Securities and Exchange Commission,
7/14/06]
Tillerson Became President Of Exxon In 2004; CEO in 2006 [Exxon, accessed 12/10/16]
Exxon Affiliates Made Sales to the Iranian Government
Exxon Affiliates Made Sales To An Iranian Embassy And Iran’s Mission To The UN. According to a letter from
Exxon to the Securities and Exchange Commission, “In April 2003, Mobil Oil Senegal, a Senegal corporation, sold fuel
coupons at market value, exclusive of excise taxes, for 11,400 liters of gasoil valued at about $7,438 to the Iranian Embassy in
Dakar. These fuel coupons were redeemable for fuel at participating retail service stations. Deville-Mazout Sarl, a Swiss
affiliate, made three deliveries of heating oil to the Iranian Mission to the UN in Geneva: April 29, 2003 (6,002 liters valued at
$1,893) ; June 2, 2004 (6,804 liters valued at $2,586); and September 15, 2005 (5,696 liters valued at $3,746). These were
telephone spot sales.” [Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon Affiliates Made Sales To Iran Air And The Iranian Embassy In Paris. According to a letter from Exxon to the
Securities and Exchange Commission, “ExxonMobil Middle East Supply Company Ltd. (‘EMMES’), a Bahamas corporation,
owns a minority (49%) interest in the Arabian Petroleum Supply Company (‘APSCO’), a Saudi Arabian joint stock company.
We have limited information on APSCO operations but what we have suggests that APSCO may sell finished or unfinished
lubricants into Syria or through Syria to other destinations. APSCO also has sold jet fuel (purchased from Saudi Aramco) to
Iran Air. This business was solicited directly by APSCO. In 2003, EMMEM, which sold lubricants to APSCO, learned that
earlier in the year, APSCO had sold Mobil-branded lubricants supplied by EMMEM to Iran Air (300 barrels) and Sudan
Airways (28 barrels). While EMMEM’s supply of lubricants to APSCO was lawful, EMMEM ceased further supply of
lubricants to APSCO until it obtained APSCO’s agreement that EMMEM supplied lubricants would not be resold to these
customers or exported outside of Saudi Arabia. Worex S.N.C., a French affiliate, made deliveries of heating oil to the Iranian
Embassy in Paris: 8,300 liters valued at $4,372 in 2003; 12,400 liters valued at $7,670 in 2004; and 6,400 liters valued at $4,906
in 2005. Worex also made deliveries of heating oil to the Syrian Embassy in Paris: 36,300 liters valued at $19,030 in 2003,
43,500 liters valued at $26,910 in 2004 and 22,000 liters valued at $16,860 in 2005.” [Exxon letter to the Securities and
Exchange Commission, 2/7/06]
REX TILLERSON REPEATEDLY EXPRESSED DESIRE TO INVEST IN IRAN
Tillerson On Iran In 2016: “We’ll Wait And See If Things Open Up For U.S. Companies. We Would Certainly Take
A look” Into Iran Investments. In an interview on CNBC, Rex Tillerson said “U.S. companies like ours are still unable to
conduct business in Iran. A lot of our European competitors are in, working actively. I don’t know that-- that we’re necessarily
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at a disadvantage. The history of Iranian-- in foreign investment in the past, their terms were always quite challenging, quite
difficult. We--never had large investments in Iran for that reason. And I don’t know that the Iranians are gonna be any
different today. We’ll have to wait and see and there hasn’t been any contracts put out. But I also learned a long time ago that
sometimes being the first in is not necessarily best. We’ll wait and see if things open up for U.S. companies. We would
certainly take a look because it’s a huge resource-owning country.” [CNBC, 3/3/16]
2015: Bloomberg Reported Exxon Hired A Lobbyist To Influence Iran Sanctions That Prevented U.S. Corporations
From Doing Business With Iran. According to Bloomberg, “Exxon, the world’s largest publicly traded crude producer by
market value, hired the lobbying firm founded by former Senator Don Nickles, an Oklahoma Republican, to monitor activity
related to Iranian sanctions, according to federal disclosure documents. This is the first time since 2010 that the Irving, Texasbased
oil company enlisted outside lobbyists to discuss Iran. Western energy companies are eager to tap Iranian fields that are
among the biggest and cheapest to exploit in the world, said Morningstar Inc.’s Allen Good. Iran nationalized oil production
in the 1970s. Sanctions imposed after the 1979 Islamic Revolution and later over the country’s nuclear ambitions have kept the
country largely off-limits to American firms. Iran is home to the world’s fourth-largest oil reserves and second-biggest cache of
natural gas.” [Bloomberg, 5/21/15]
Exxon Denied It Was Lobbying On Sanctions, But Merely “Monitoring Activities Related To Iran.”
According to Bloomberg, “‘We are not lobbying on Iran sanctions,’ Alan Jeffers, an Exxon spokesman, said during a
telephone interview on Thursday. ‘We are monitoring activities related to Iran in the U.S. government.’ In a statement,
Nickles said his firm has represented Exxon for a decade, and would review their lobbying disclosure form to be sure
it accurately describes the work they’re doing related to Iran. ‘We are not influencing or advocating in any way on Iran
sanctions; our work with regard to Iran has involved only monitoring legislative activity in the U.S. Congress dealing
with that sanctions regime.’” [Bloomberg, 5/21/15]
2006: In Response To The SEC, Exxon Acknowledged Contact With Iran And Desire To Pursue Business In Iran If
Sanctions Were Reduced Or Lifted. According to a February 7, 2006 letter from Exxon to the Securities and Exchange
Commission, “We do have occasional contacts with persons in those countries. We strictly comply with all applicable
regulations regarding such contacts, and the contacts are made only after legal advice is rendered as to what is allowed under
current sanctions. For example, our employees attending a European petroleum conference may tell an Iranian attendee that
while we are unable to pursue certain business opportunities in Iran under present sanctions, we would be interested in talking
to them in the future if the sanctions were reduced or lifted.” [Exxon letter to the Securities and Exchange Commission,
2/7/06]
Despite American Foreign Policy Toward Iran And Iraq In The Early 2000’s, Tillerson Kept An Open Mind To
“Another Set Of Circumstances” That Might Come About In Those Countries In Coming Years. According to Private
Empire: ExxonMobil and American Power, “There was more concern within ExxonMobil about the corporation’s ability to keep
replacing its reserves than Raymond let on. The numbers the corporation was reporting to Wall Street at this time were not
impressive: At best, ExxonMobil seemed to be churning in place, finding only enough new oil each year to replace that which
it had pumped and sold. A former manager recalled a 2004 meeting at which the message was: ‘We can’t get enough new
assets to replace our reserves.’ As a result, geologists and scientists throughout the upstream division took a fresh 360-degree
review of reserve prospects worldwide. They revisited old assumptions. ‘They looked everywhere,’ the manager recalled. Iraq
offered a potential breakthrough in ExxonMobil’s access to equity reserves, but Raymond counseled patience. ExxonMobil
had owned oil in Iran and Iraq for decades during the twentieth century. It did not own oil in those countries in 2003, but
twenty years into the future, as Tillerson put it, ‘we’ll have another set of circumstances in some of those countries.’ One
attribute of a nation-state ExxonMobil lacked was an army or a navy of its own. China could ‘free ride’’ on the United States
Navy’s control of the open seas; Lee Raymond had no choice but to free ride on the Bush administration’s efforts to subdue
Iraq.” [Private Empire: ExxonMobil and American Power, pg. 247, 2012]
EXXON HAS LONG HISTORY OF OPERATIONS IN IRAN
Prior To The 1970s, Exxon Owned And Operated Large Oil And Gas Fields In Iran. According to Private Empire:
ExxonMobil and American Power, “Before the 1970s, Exxon, BP, and other large oil companies owned and operated large oil and
gas fields in Saudi Arabia, Iraq, Iran, Venezuela, and elsewhere. Rising anticolonialism and nationalism stoked a period of
upheaval that caused them to lose major properties.” [Private Empire: ExxonMobil and American Power, pg. 52, 2012]
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Exxon Lobbyists Routinely Opposed Economic Sanctions Imposed On Iran And Argued For Free Trade. According
to Private Empire: ExxonMobil and American Power, “This understanding of risk shaped some of ExxonMobil’s lobbying on
foreign policy issues in Washington. The corporation promoted free-trade philosophies at every turn and opposed economic
sanctions against oil producers, except in the most egregious cases; until September 11, ExxonMobil lobbyists in Congress had
opposed oil sanctions imposed on Libya, Iran, and Syria. The corporation ‘s economic self-interest on the sanctions issue was
obvious, but the policy arguments mounted on PowerPoint slides by its in-house advocates were broad: The creation of a freeflowing
global oil pool, one shaped to the greatest possible degree by market incentives, would promote American national
security, ExxonMobil’s representatives insisted.” [Private Empire: ExxonMobil and American Power, pg. 246, 2012]
Exxon’s Predecessor First Invested In Iran In 1947 And Helped Run The Country’s Petroleum Industry For Two
Decades. According to Bloomberg, “A forerunner of Exxon, Standard Oil of New Jersey, first invested in Iran in 1947. In
1954 it became part of a group of eight foreign companies known as the Iranian Oil Participants that ran the day-to-day
operations of the country’s petroleum industry for the next two decades until the industry was nationalized.” [Bloomberg,
5/21/15]
EXXON HAD BUSINESS WITH OTHER STATE SPONSORS OF TERRORISM,
INCLUDING SYRIA AND SUDAN
Exxon Purchased Oil from Syria’s State Owned Oil Company
Exxon Purchased Crude Oil From Government Controlled Syrian Petroleum Company. According to a letter from
Exxon to the Securities and Exchange Commission, “We note also your discussion of ExxonMobil Sales and Supply Corporation’s
purchases of Syrian crude from independent third parties on a spot basis between 2003 and 2005. Please advise us of the terms of your spot
purchases; the timing, to the best of your knowledge, of the exchange of funds and delivery of oil between the initial seller and your counterparty; the
annual dollar amounts paid by EMS&S from 2003 through 2005; and whether your counterparties acquired oil directly from the Syrian
government or entities controlled by the Syrian government. The key commercial terms of EMS&S’s spot purchases of Syrian crude from
independent third parties during 2003-2005 are shown on the attached spreadsheet together with the total dollar amounts of
such purchases for each year. These transactions were normal spot purchases of crude oil. During the time in question, and
continuing to the present, it was and is legal under the applicable U.S. laws and regulations for U.S. companies to purchase
Syrian crude oil, either indirectly through third parties or directly from the Syrian government or the government-controlled
Syrian Petroleum Company (‘Sytrol’).” [Exxon letter to the Securities and Exchange Commission, 7/14/06]
Exxon Had Contracts with Syrian State Oil and Airline Companies
Exxon Had A Contract With Syrian State Oil Company. According to a February 7, 2006 letter from Exxon to the
Securities and Exchange Commission, “Prior to the imposition of US sanctions in May 2004 against Syria, ExxonMobil Sales
and Supply Corporation, a Delaware corporation (‘EMS&S’), through its United Kingdom branch had a contract with
SYTROL, the Syrian state oil company, and during 2003, lifted thirteen cargos of Syrian crude, in total about 7,100,000 barrels
valued at about $191,000,000, pursuant to that contract. Prior to May 2004, the contract was mutually terminated, however,
prior to termination, EMS&S lifted two cargos of Syrian crude, about 1,200,000 barrels valued at about $35,000,000.” [Exxon
letter to the Securities and Exchange Commission, 2/7/06]
Exxon Had A Contract To Supply Fuel For Syrian State-Owned Airline. According to a February 7, 2006 letter from
Exxon to the Securities and Exchange Commission, “ExxonMobil Aviation International Ltd. a United Kingdom corporation
(‘EMA’), had a contract with Syrian Arab Airlines to supply jet fuel for its use at seven airports (Beirut, Bordeaux, Casablanca,
Ankara, Basle-Mulhouse, Milan Malpensa, and Vienna). EMA’s contract with Syrian Arab Airlines expired December 31, 2004
for all locations except at the Beirut Airport, which expired June 2005. The volumes sold pursuant to the contract were small
(a total of 626,000 gallons valued at about $910,000 in 2003; 1,085,000 gallons valued at about $1,800,000 in 2004 and 143,000
gallons valued at $101,000 in 2005). EMA repaid a deposit of $40,000 to the airline in September 2005.” [Exxon letter to the
Securities and Exchange Commission, 2/7/06]
Exxon Sold Millions to Syrian Customers INcluding State-Owned Airline
Exxon Sold $67.7 Million In Product To Customers In Syria Between 2003 And 2005. According to a February 7, 2006
letter from Exxon to the Securities and Exchange Commission, “Our Chemical segment has had no business transactions in
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Sudan or Iran, but has had transactions in Syria. It has sold, from European sources with less than 10% U.S. content,
polyethylene and polypropylene (and small quantities of plasticizers and films) as follows:
Country 2003 2004 2005
(millions of dollars)
Syria $19.7 $23.7 $24.3
To our knowledge the Syrian customers are all private companies. There were no term contracts.” [Exxon letter to the
Securities and Exchange Commission, 2/7/06]
Exxon Sold Aviation Lubricants To Syrian State Airline And Owned 49% Stake In Syrian Company Operating A
Lubricant Oil Blending Plant In Syria Using Exxon Oil, Products, And Additives. According to a February 7, 2006
letter from Exxon to the Securities and Exchange Commission, “Prior to the imposition of sanctions against Syria in 2004,
ExxonMobil Middle East Marketing Corporation (‘EMMEM’), a Delaware corporation, sold aviation lubricants to Syrian Arab
Airlines at the Dubai airport in the United Arab Emirates. These sales totaled $24,480 in 2003 and $19,800 in 2004. Until June
30, 2005 when EMMEM sold its interest, it owned a minority (49%) interest in Al-Amir Luboil Industries and Marketing
Company (‘ALIMCO’), a Syrian limited liability company headquartered in Damascus. ALIMCO, at that time, was engaged in
the manufacture, distribution and marketing of Mobil-branded finished lubricants in Syria. ALIMCO owned and operated a
lubricant oil blending plant in Syria as well as two warehouses. Prior to the sale of its minority interest, EMMEM supplied
ALIMCO with non-US sourced base oil, products, and additives.” [Exxon letter to the Securities and Exchange Commission,
2/7/06]
Exxon Subsidiary owned Sudanese Corporation
Exxon Subsidiary Owned Mobil Oil Sudan Ltd, Which Supplied Jet Fuel To Sudan State-Owned Airline, And
Operated Jet Fuel Terminals, and Mobil Gas Stations. According to a February 7, 2006 letter from Exxon to the
Securities and Exchange Commission, “Until March 13, 2003, Mobil International Petroleum Corporation (‘MINT’) (a
Delaware corporation) owned Mobil Oil Sudan Ltd. (‘MOS’) a Sudan corporation, which at the time marketed motor fuels, jet
and marine fuels, lubricants and other petroleum products. MOS had three fuels terminals and two joint venture airport
operations (50/50 with Shell Sudan); 52 Mobil branded service stations; fuel sales of approximately 1,600,000 barrels per year;
an approximate fuels market share of 11%; and approximately 80 employees.[…] Prior to the sale, MOS delivered fuel on an
ad hoc basis to Sudan Airways at Khartoum.” [Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon and Exxon Joint Venture Had Business in Iran, Syria, and Sudan
Exxon Joint Venture Had Business In Iran, Syria, And Sudan. According to a February 7, 2006 letter from Exxon to the
Securities and Exchange Commission, “In addition, we have a 50% interest in Infineum, a chemicals joint venture with Shell.
We each own a 50% interest in the joint venture through respective European subsidiaries. However, Infineum’s European
affiliates manage the business transactions in the Three Countries under a policy and procedure consistent with U.S. legal
requirements and no United States person is involved in those business transactions. Infineum’s European affiliates had sales
to entities in the Three Countries as follows:
Country 2003 2004 2005
(millions of dollars)
Iran $20.5 $16.6 $16.1
Sudan $0.3 $0.3 $0.0
Syria $0.3 $0.6 $0.2
[Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon Invested In A Saudi Arabian Business That Sold Jet Fuel And Mobil Products To Iran Air And Sudan
Airways. According to a February 7, 2006 letter from Exxon to the Securities and Exchange Commission, “ExxonMobil
Middle East Supply Company Ltd. (‘EMMES’), a Bahamas corporation, owns a minority (49%) interest in the Arabian
Petroleum Supply Company (‘APSCO’), a Saudi Arabian joint stock company. We have limited information on APSCO
operations but what we have suggests that APSCO may sell finished or unfinished lubricants into Syria or through Syria to
other destinations. APSCO also has sold jet fuel (purchased from Saudi Aramco) to Iran Air. This business was solicited
directly by APSCO. In 2003, EMMEM, which sold lubricants to APSCO, learned that earlier in the year, APSCO had sold
Mobil-branded lubricants supplied by EMMEM to Iran Air (300 barrels) and Sudan Airways (28 barrels). While EMMEM’s
supply of lubricants to APSCO was lawful, EMMEM ceased further supply of lubricants to APSCO until it obtained APSCO’s
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agreement that EMMEM supplied lubricants would not be resold to these customers or exported outside of Saudi Arabia.”
[Exxon letter to the Securities and Exchange Commission, 2/7/06]
EXXON ATTEMPTED TO DOWNPLAY BUSINESS CONNECTIONS TO STATE
SPONSORS OF TERRORISM DURING QUESTIONING FROM SECURITIES AND
EXCHANGE COMMISSION
2006: Securities And Exchange Commission Issued A Letter To Rex Tillerson Requesting Disclosure Of Reported
Exxon Operations With Designated State Sponsors Of Terrorism, Iran, Syria, And Sudan. According to a January 6,
2006 Securities and Exchange Commission letter to Rex Tillerson, “1. We note from public media sources that you may have
existing or anticipated operations associated with Iran, Syria and Sudan, which are identified as state sponsors of terrorism by
the U.S. State Department and subject to export controls imposed, in part, as a result of actions in support of terrorism
and/or pursuit of weapons of mass destruction and missile programs.” [Securities and Exchange Commission letter to Rex
Tillerson and Exxon, 1/6/06]
Exxon Did Not Disclose Any Operations In Iran, Syria, And Sudan On Its Form 10K. According to a January
6, 2006 Securities and Exchange Commission letter to Rex Tillerson, “We note that your Form 10K does not contain
any disclosure about operations in these countries. With a view to disclosure, please address the materiality of your
contacts with these countries. Your response should describe your current, historical and anticipated operations in,
and contacts with, these countries, including through subsidiaries, affiliates, joint ventures and other direct and
indirect arrangements.” [Securities and Exchange Commission letter to Rex Tillerson and Exxon, 1/6/06]
Exxon Argued Its Interaction With Iran, Syria, And Sudan Were Limited And Claimed Disclosure Was Not “Legally
Necessary Or Appropriate.” According to a February 7, 2006 letter from Exxon to the Securities and Exchange
Commission, “In summary, we have had very limited interaction with Syria, Sudan, and Iran. When viewed in terms of the
scale of our business (revenues of $371,000,000,000; petroleum product sales of 3,000,000,000 barrels), we are confident that
these interactions are not material by any reasonable measure, that they certainly do not rise to the level where separate
disclosure would be either legally necessary or appropriate, and that they do not pose a material risk for our security holders.
Furthermore, we do not believe these de minimis activities would be qualitatively important to a reasonable investor.” [Exxon
letter to the Securities and Exchange Commission, 2/7/06]
2006, Exxon: “We Do Not Have Any Current Operations In Iran, Syria Or Sudan.” According to a February 7, 2006
letter from Exxon to the Securities and Exchange Commission, “We do not have any current operations in Iran, Syria or
Sudan (the ‘Three Countries’). We have no oil fields, refineries, offices or employees in the Three Countries.” [Exxon letter to
the Securities and Exchange Commission, 2/7/06]
Close Ties to Russia and Putin
Much of Rex Tillerson’s success at Exxon was due to his close working relationship with Russia, Vladimir Putin, and the
Russian state-owned oil company Rosneft. He has routinely defended Russia from U.S. Sanctions and his close ties to Putin is
best exemplified by his receipt of the highest honor possible for a foreigner, the Russian Order of Friendship.
His rise to CEO was largely due to his role working on the Sakhalin-1 project with Russia. Tillerson has been involved in
nearly all of Exxon’s major deals with Russia’s state-owned oil company, including the “groundbreaking” Sakhalin-1 project,
and exploration of the Black and Kara Seas, earning millions in bonuses along the way.
AWARDED RUSSIAN ORDER OF FRIENDSHIP BY VLADIMIR PUTIN
Rex Tillerson Was Awarded The Russian Order Of Friendship By Vladimir Putin. According to RIA Novosti, “Russian
President Vladimir Putin on Friday awarded the managers and employees of a number of the leading energy companies in the
world. Awards handed power industry Head of State during his meeting with them in the framework of St. Petersburg
International Economic Forum. In accordance with the decree of the president, for his significant contribution to
strengthening international cooperation in the oil and gas fields of the Order of Friendship awarded by the authorized
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manager of Eni, Paolo Scaroni and Chairman of the Board of Directors, General Director of "Exxon Mobil" Rex Tillerson.
Also, a number of employees of energy companies thanked the Russian president.” [RIA Novosti, 6/21/13]
TILLERSON’S ROSE TO CEO ON THE STRENGTH OF HIS WORK IN RUSSIA
Private Empire: Tillerson “Had Risen To The Cusp Of The Top Job At Exxonmobil Partly On The Strength Of His
Work In Russia.” According to Private Empire: ExxonMobil and American Power, “In early April 2002, Rex Tillerson arrived at
the ExxonMobil terminal D at Love Field in Dallas to board a jet to Moscow. Tillerson had turned fifty less than three weeks
before. He had risen to the cusp of the top job at ExxonMobil partly on the strength of his work in Russia. The Bush
administration’s oil initiative placed ExxonMobil ‘s business dealings in Russia in a new light. There was now the potential, if
all went well, for ExxonMobil to acquire substantial equity oil in Russian fields, enough to make a major contribution to the
corporation’s reserve replacement requirements. There was no other place on Earth where the corporation enjoyed such full
and explicit partnership with the White House in the pursuit of such large oil holdings-the sort of partnership that
ExxonMobil executives often claimed they neither wanted nor needed.” [Private Empire: ExxonMobil and American Power,
pg. 258, 2012]
TILLERSON’S EXECUTIVE COMPENSATION WAS LINKED TO PROJECTS IN
RUSSIA
Rex Tillerson Earned Bonus Payouts Connected With Exxon Mobil’s Exploration Of Oil In The Russian Arctic.
According to the Guardian, “The boss of Exxon, Rex Tillerson, was paid $33.1m last year including bonus payouts linked to
projects including the first well in the Kara Sea, in the Russian Arctic, and the expansion of the Kearl tar sands operations in
northern Alberta, Canada.” [Guardian, 5/25/15]
TILLERSON VEHEMENTLY OPPOSED SANCTIONS ON RUSSIA THAT WOULD
HURT HIS AND EXXON’S BOTTOM LINE
Rex Tillerson Criticized U.S. Sanctions Against Russia As Harmful For Business. According to Russian Oil Refining
Industry, “Russia has found buyers for a stake in ‘Rosneft’ oil company, despite the Western sanctions. As reported on
Thursday, the newspaper The New York Times, the deal to sell a stake to Swiss trader Glencore and the Qatar sovereign fund
‘has denied the expectation that no investor would dare to buy a stake in Russian assets, given entered the West sanctions
against Russia.’ The emergence of foreign money in the deal ‘demonstrates that investors re-evaluate the issue of sanctions
following the election of Donald Trump, who played for the warming of relations with Moscow and considers Rex Tillerson,
chairman of ExxonMobil as a candidate for the post of US Secretary of State,’ the newspaper said. Tillerson criticized
sanctions as a harmful business after the result was stopped by a joint venture with Exxon ‘Rosneft’ drilling in the Kara Sea in
the Russian sector Arktiki.” [Russian Oil Refining Industry, 12/9/16]
2001: TILLERSON SECURED AN AGREEMENT WITH THE RUSSIAN
GOVERNMENT TO DEVELOP A MAJOR OIL AND GAS FIELD OFF SAKHALIN
ISLAND
2001: Rex Tillerson Made A Deal With The Russian Government To Allow ExxonMobil Project Off Of Sakhalin
Island. According to the Dallas Morning News, “Mr. Tillerson, who also was not interviewed, cut a deal with the Russian
government in 2001 to allow the giant production project off of Sakhalin Island. Observers say experience negotiating with the
Russians is key for the chief executive as Russia's importance in the energy world increases. ‘Working with Russian
bureaucracy is never very smooth,’ said Eugene Lawson, president of the U.S.-Russia Business Council. ‘He was able to do a
straight zigzag through a minefield.’ Mr. Tillerson, who is a board member of the business council, won the Russians over
through his honesty and consistency, Mr. Lawson said.” [Dallas Morning News, 12/25/05]
Washington Times: “Exxon Regularly Pitches Its Groundbreaking Sakhalin Island Liquefied Natural Gas
Drilling Project In Russia's Far East As One Of Its Greatest Accomplishments.” According to the Washington
Times, “In contrast to BP, Exxon Mobil - the American company most heavily invested in Russia - last week deflected
questions from worried investors about the possible impact of tightening sanctions on its vast operations in Siberia.
15

Exxon regularly pitches its groundbreaking Sakhalin Island liquefied natural gas drilling project in Russia's Far East as one
of its greatest accomplishments. In helping Russia tap into its remote Far Eastern offshore reserves under the harshest of
Arctic conditions, Exxon has played a pivotal role in helping Russia exploit its potential as an energy giant. Among other
things, the infrastructure put into the Sakhalin project laid the groundwork for funneling more of Russia's oil and gas to
China, Japan and other lucrative Asian markets, making Russia less dependent on Europe as a market for its fuel.”
[Washington Times, 8/12/14]
2003: TILLLERSON’S ATTEMPT TO PURCHASE A LARGE STAKE IN RUSSIAN
OIL AND GAS GIANT, YUKOS
2003: Exxon Was Intent On Acquiring A Large Stake In Yukos, Then Russia’s Largest Private Oil Company.
According to The New York Times, “The Exxon-Rosneft agreement commits Exxon to spend about $1 billion looking for oil
off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is discovered. But Russian authorities have
reneged on deals with Exxon in the past. Desperate for investments when oil prices sank in the 1990s, Russia agreed to give
Exxon generous terms that exempted it from most taxes and allowed it to sell much of the oil it prospected. But in recent
years, local authorities have interfered in operations. In the early 2000s, Exxon was intent on acquiring a large stake in Yukos,
once Russia’s largest private oil company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s main
shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets to
the state oil company, Rosneft.” [The New York Times, 1/28/11]
JANUARY 2011: EXXON SIGNED BLACK SEA DEVELOPMENT AGREEMENT
WITH ROSNEFT
2011: Under Rex Tillerson, ExxonMobil Reached An Agreement With State-Owned Russian Oil Company Rosneft
To Develop Hydrocarbon Resources In The Black Sea. According to Russian Oil Refining Industry, “OJSC ‘NK’ Rosneft
‘company, and ExxonMobil have reached an agreement on joint development of hydrocarbon resources of the Russian shelf
of the Black Sea. […] Chairman of the Board of Directors, ExxonMobil CEO Rex Tillerson, who was also present at the
signing ceremony, said that his company is ‘pleased to be able to expand cooperation with’ Rosneft ‘for the benefit of the
development of Russia’s energy sector.’ ‘Of ExxonMobil will complement the existing company ‘Rosneft’ advantages and
experience in this region, bringing to the project its technological leadership, high quality jobs and new technologies’, - said R.
Tillerson. - We already have a successful experience of cooperation with ‘Rosneft’ in the ‘Sakhalin-1’ project. We intend to
expand these relations in order to meet the Russian and the whole Black Sea region’s energy needs.’” [Russian Oil Refining
Industry, 1/27/11]
2011: Rex Tillerson On Rosneft-ExxonMobil Black Sea Agreement: “We Will Build On The Successful
Relationship We Have With Rosneft […] To Help Meet Energy Needs In Russia And The Wider Black Sea
Area.” According to Platts Oilgram News, “The ExxonMobil deal, which was signed by Rosneft President Eduard
Khudainatov and ExxonMobil Development Company President Neil Duffin during the World Economic Forum in
Davos, Switzerland, goes beyond just exploration in the Black Sea. […] ExxonMobil Chairman and CEO Rex
Tillerson, who also attended the ceremony, said his company welcomed the opportunity to expand its activities with
Rosneft for the benefit of Russian energy development. ‘ExxonMobil will bring its technology, project execution
capabilities and innovation to complement Rosneft’s strengths and experience in the region,’ Tillerson said. ‘We will
build on the successful relationship we have with Rosneft through the Sakhalin 1 project to help meet energy needs in
Russia and the wider Black Sea area.’” [Platts Oilgram News, 1/28/11]
AUGUST 2011: EXXON SIGNED STRATEGIC COOPERATION AGREEMENT WITH
ROSNEFT
August 2011: Exxon And Rosneft Entered Into A Wide-Reaching “Strategic Cooperation Agreement” Under Which
The Companies Would Undertake Joint Exploration And Development Projects Throughout The World. According
to Business Wire, “Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies
plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other
countries throughout the world, and commence technology and expertise sharing activities. The agreement, signed by Rosneft
President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian
16

Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of East
Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most
promising and least explored offshore areas globally, with high potential for liquids and gas. In the course of these projects,
the companies will use global best practices to develop state-of-the-art safety and environmental protection systems. The
agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil’s exploration
opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA), as well as additional
opportunities in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in
Western Siberia. The companies will create an Arctic Research and Design Center for Offshore Developments in St.
Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and
Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production
2012: EXXON SIGNED AGREEMENT WITH ROSNEFT TO EXPLORE WESTERN
SIBERIA
In 2012, Tillerson And Putin Attended A Signing Ceremony Announcing An Exxon-Rosneft Agreement To Develop
“Tight Oil Reserves In Western Siberia And Establish A Joint Arctic Research Center For Offshore Developments.”
According to Business Wire, “Rosneft and ExxonMobil today signed agreements to jointly develop tight oil reserves in
Western Siberia and establish a joint Arctic Research Center for Offshore Developments. The agreements, which support
implementation of the companies’ August 2011 long-term strategic cooperation agreement, were signed by Rosneft President
Igor Sechin and Stephen M. Greenlee, president of ExxonMobil Exploration Company. Vladimir Putin, President of the
Russian Federation, Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), and
other top managers of the companies were present at the signing ceremony. Rosneft and ExxonMobil agreed to expand and
expedite joint efforts to develop oil reserves in tight low-permeability formations in Western Siberia using advanced
technologies that ExxonMobil has successfully employed in North America.” [Business Wire, 6/15/12]
2012: EXXON SIGNED AGREEMENTS TO ALLOW ROSNEFT TO INVEST IN
NORTH AMERICAN OIL AND GAS HOLDINGS
2012: Rex Tillerson And Vladimir Putin Attended The Signing Of A Package Of Agreements That Allowed Russian
State-Run Oil Company Rosneft To Develop Projects In The U.S. And Canada. “Yesterday, in Novo-Ogaryovo in the
presence of Prime Minister Vladimir Putin presidency, ‘Rosneft’ and ExxonMobil Eduard Khudainatov and Rex Tillerson
signed a package of agreements on the second part of the transaction to create a strategic alliance. In August 2011, ‘Rosneft’
and ExxonMobil have agreed to jointly develop three areas Vostochnoprinovozemelskih now the Russian state company will
get in return projects in the US and Canada. ‘These agreements are designed for decades,’ - said the prime minister. Rex
Tillerson said that ‘negotiations are moving to a new horizon.’ ‘We have become global partners’, - he said.” [Kommersant
digest via AK&M News, 4/17/12]
FEBRUARY 2013: EXXON AND ROSNEFT EXPAND COOPERATION
AGREEMENT
Exxon-Rosneft Partnership Expanded To Include More Projects In Russian Arctic, A LNG Project In The
Russian Far East And An Exxon Project In Alaska
February 2013: Exxon And Rosneft Expanded Their 2011 Strategic Cooperation Agreement To Include New
Projects In The Chukchi Sea, Laptev Sea And Kara Sea, A Joint Study On A Potential LNG Project In The Russian
Far East, And Potential Participation By Rosneft In The Point Thomson Project In Alaska. According to Business
Wire, “Rosneft and ExxonMobil have agreed to expand their cooperation under their 2011 Strategic Cooperation Agreement
to include an additional approximately 600,000 square kilometers (150 million acres) of exploration acreage in the Russian
Arctic and potential participation by Rosneft (or its affiliate) in the Point Thomson project in Alaska. They have also agreed to
conduct a joint study on a potential LNG project in the Russian Far East. The agreements, which include plans to explore
seven new blocks in the Chukchi Sea, Laptev Sea and Kara Sea, were signed by Igor Sechin, president of Rosneft, and Stephen
Greenlee, president of ExxonMobil Exploration Company, in the presence of Russian President Vladimir Putin.” [Business
Wire, 2/13/13]
17

HUMAN RIGHTS AND CORPORATE RESPONSIBILITY
Displayed Indifference To Human Rights At Exxon
Tillerson carried out a global business strategy at Exxon that put profits over human rights:
Under Tillerson, Exxon chose not to inform U.S. authorities of human rights abuses.
Under Tillerson, Exxon treated foreign workers poorly.
Under Tillerson, Exxon made deals with governments that poor human rights records, such as:
Russian dictator Vladimir Putin.
Idriss Deby’s regime in Chad.
Muammar Gaddafi’s government in Libya.
UNDER TILLERSON, EXXON CHOSE NOT TO INFORM U.S. AUTHORITIES OF
HUMAN RIGHTS ABUSES
Under Tillerson, When Facing Kidnappings And Threats In Dangerous Places, Such As Nigeria, Exxon Preferred
Not To Share Information With The US Government For Fear Of Information Becoming Public. According to Private
Empire: ExxonMobil and American Power, “The British Foreign Office took a leading role. Washington involved itself as well.
After September 11, the State Department set up an enhanced interagency crisis response team that could rapidly deploy to
help governments respond to hostage takings, particularly those involving Americans. By 2006 the team had drilled for just the
sort of crisis that ExxonMobil now faced. But the idea that American and British intelligence and security officers might
parachute into Nigeria to sort out hostage crises made the Nigerian government ‘uneasy,’ as a State Department official
involved put it. It did not thrill ExxonMobil, either. The corporation’s security officers were at times reluctant to share
information about kidnappings-in-progress with the American government, fearing that sensitive details might be released
under the Freedom of Information Act or otherwise leak to the media, compromising negotiations. ‘Unless serious injury is
imminent, companies prefer to negotiate without Embassy intervention unless intervention could be discreet,’ a cable to
Washington from Abuja reported.” [Private Empire: ExxonMobil and American Power, pg. 459, 2012]
UNDER TILLERSON, EXXON TREATED FOREIGN WORKERS POORLY
In 2006, Workers At Exxon’s Kome-5 Facility In Chad Referred To The Compound As Guantanamo Due To The
Tall, Barbed-Wire Fences And Month-Long Shifts Workers Spent Trapped Inside Due To Extreme Threats In The
Country. According to Private Empire: ExxonMobil and American Power, “Scores of oil platforms had spread across the red clay
ravines and sub­ tropical bush of southern Chad by 2006 . There were by now just over twelve thousand square Each rig
pointed at the sky like a thirty-foot rocket prepared for launch. In the dry seasons heat baked the ground to an amber shade
and blown dust caked the equipment. When the rains came, low clouds hung in wisps around the metallic caps topping the
derricks. At the main production facility at Kome, known within ExxonMobil as Kome-5, some of the Africans who worked
behind the tall fences illuminated by safety lights, and who found their lives constrained by ExxonMobil’s extensive rule
making, facetiously referred to the compound as Guantanamo. The joke’s suggestion of exclusion captured a larger truth
about ExxonMobil’s operations in Chad. Since it was not feasible for the corporation to devise solutions to all of the problems
of a very poor country, the logic of ExxonMobil’s systems management argued for engineering Chad and its pathologies out
of the equation to the greatest extent possible. ExxonMobil’s one thou­ sand expatriate workers and managers rotated in and
out of the country on twenty-eight-day tours without ever interacting with the world outside their compound chain-link
fences, which were nine feet high and topped with a barbed-wire anticlimbing barrier.” [Private Empire: ExxonMobil and
American Power, pg. 350, 2012]
18

2010: An International Labor Union For Oil And Gas Workers Issued A Complaint That An Exxon Subsidiary In
Nigeria Un-Lawfully Relied On “Non-Direct And Contract Workers,” And “Failing To Give Nigerian Nationals
Long-Term Job Opportunities.” According to Africa News, “The International Federation of Chemical, Energy, Mine and
General Workers’ Union (ICEM) has drawn the attention of the United States-based parent company of Exxon Mobil to the
anti-labour activities of one of its subsidiaries-Mobil Producing Nigeria Unlimited (MPN) concerning the use of casual and
contract workers by MPN. ICEM is the predominant trade union federation in the world for oil and gas workers in both the
upstream and downstream sectors. ICEM, in a petition to the Chairman/Chief Executive Officer, ExxonMobil Corporation,
Texas, Mr. Rex Tillerson, expressed concern that MPN is un-lawfully engaging non-direct and contract workers to perform
key functions in Nigeria’s oil and gas industries thereby failing to give Nigerian nationals long-term job opportunities in their
work places.” [Africa News, 3/15/10]
Exxon Subsidiary Refused To Negotiate With The Labor Union When The Union First Protested Exxon’s
Practices. According to Africa News, “Petroleum and Natural Gas Senior Staff Association of Nigeria
(PENGASSAN) had last month shut down operations of Mobil offices across the country to draw attention to the
plight of many Nigerian workers made redundant by the MPN. Despite the protest, management of MPN had refused
to dialogue with the union. Given this scenario, ICEM decided to take up the matter and write to the parent
company on the proliferation of such employment by Mobil subsidiary in Nigeria. ICEM said it con-siders the refusal
by Mobil to negotiate with the union as a flagrant disregard of its social responsibility.” [Africa News, 3/15/10]
UNDER TILLERSON, EXXON DID BUSINESS WITH GOVERNMENTS WITH A
HISTORY OF HUMAN RIGHTS VIOLATIONS
Under Tillerson, Exxon Did Business With Idriss Deby’s Regime In Chad
Chad’s President Deby And His Authoritarian Government Made $300 Million In Oil Revenues In 2005 At The
Same Time His Country Suffered Threats From Neighboring Dictators. According to Private Empire: ExxonMobil and
American Power, “Such was Deby’s predicament late in 2005: He feared an imminent rebel invasion aimed at overthrowing his
regime, but he lacked adequate means to defend his palace. The absurdity, from his perspective, was that at the very moment
this threat loomed, he was becoming richer than many of his neighboring dictators-or ‘authoritarian leaders,’ as Washing ton
sometimes preferred. Under the 1988 oil production contract, as world oil prices rose and ExxonMobil recouped the costs of
its initial oil field investments faster than expected, the revenue flowing to Deby also soared; it now exceeded all previous
projections. His government took in $300 million in 2005.” [Private Empire: ExxonMobil and American Power, pg. 357-358,
2012]
Deby’s Regime Oversaw A Reign Of Murder And Torture As Well As Encouraged The Esclation Of Conflict In Darfur
Throughout The 2000s, Déby Escalated A Bloody Proxy War Between Chad And Sudan Manifesting In The Darfur
Crisis. According to CBS News, “Deby played a key role in escalating a bloody proxy war between Chad and Sudan
throughout the 2000s, much of which manifested itself in the Darfur crisis, and has resulted in accusations of gross atrocities
on both sides.” [CBS News, 6/19/11]
The Chadian Army Has Been Accused Of Using Child Soldiers As Young As Ten Years Old In Its Many
Conflicts. According to CBS News, “The Chadian army is currently beset by accusations that it frequently uses child
soldiers in its many conflicts, sometimes as young as ten years old.” [CBS News, 6/19/11]
Déby Has Fought Government Opponents With “A Regime Of Murder, Torture And Enforced Disappearance.”
According to CBS News, “As part of the Deby regime's unending fight against insurgents, state security forces are accused of
carrying out ‘a regime of murder, torture and enforced disappearance of suspected government opponents,’ according to
Amnesty International.” [CBS News, 6/19/11]
Under Tillerson, Exxon Did Business With Muammar Gaddafi’s Libyan Government
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2007: Rex Tillerson Planned To Visit Libya To Explore Business Opportunities With Libya's State-Run National
Oil Corp. According to Bloomberg News, “Exxon Mobil Corp. chief executive Rex Tillerson will visit Libya to examine ways
to increase business for the world's largest oil company in the north African state, Libya's state-run National Oil Corp. said.
National Oil didn't say on its Web site when Mr. Tillerson is coming to Libya, or give details about projects he may discuss in
the country that holds Africa's largest crude oil reserves. Exxon is among U.S. companies that have resumed work in Libya
since 2004, when U.S. President George W. Bush's administration ended two decades of sanctions imposed on Muammar
Qaddafi's regime because of accusations that he was sponsoring terrorism. Exxon won exploration rights in an offshore plot
auctioned by Libya in October, 2005.” [Bloomberg News, 2/8/07]
2009: Exxon Announced It Started Drilling Libya’s First Deepwater Exploration Well With The Collaporation Of
Libya’s State-Owned National Oil Coporation. According to Business Wire, “ExxonMobil Exploration Company
announced today that its affiliate, ExxonMobil Libya Limited, has started drilling the first deepwater exploration well in Libya.
The A1-20/3 well is being drilled in Contract Area 20 (CA 20) located offshore in the Sirte Basin, northeast of the city of
Misrata, in the Libyan Mediterranean Sea. The rig, contracted from Noble Africa Limited and named the Noble Homer
Ferrington, is capable of operating in water depths up to 7,200 feet (2,195 meters), and can drill to a depth of 30,000 feet
(9,144 meters). It is designed for high efficiency and safety, and is able to operate in many global deepwater environments. Phil
Goss, President of ExxonMobil Libya Limited, said, ‘ExxonMobil has a long and successful history of working in Libya, where
we previously operated as Esso and Mobil. ‘We are pleased to start drilling our first deepwater exploration well in Libya based
on the rigorous technical work conducted by our Libyan National and expatriate scientists, and in collaboration with the
National Oil Corporation (NOC) to progress our exploration program.’” [Business Wire, 7/16/09]
Under Tillerson, Exxon Did Business With Vladimir Putin’s Government
Exxon’s Sakhalin-1 Project Had An Estimated Direct Benefit To The Russian Federation Of Approximately $25
Billion As Of April 2012. According to Fair Disclosure, “Sakhalin-1 project in Russia is example of type of investments
needed to expand energy supplies critical to advancing economies and raising living standards. 3. Sakhalin-1, one of the largest
foreign investments in Russia, delivered significant value to Russia and global economy. 1. Total estimated direct benefit todate
to Russian Federation is approx. $25b. 3. XOM and Rosneft along with co-ventures have worked together for more than
15 years in area characterized by remoteness and climate conditions that many believe would preclude successful exploration
and production.” [Fair Disclosure, 4/18/12]
Rex Tillerson And Vladimir Putin Met In Sochi To Announce $3.2 Billion Investment By Exxon And Russia’s
Rosneft To Drill In The Arctic Kara Sea, With Possible Future Investment Reaching $500 Billion. According to Private
Empire: ExxonMobil and American Power, In Russia, later that summer, Rex Tillerson flew to the Black Sea resort of Sochi to
meet with Vladimir Putin. Before television cameras, the two men sat on opposite sides of a horseshoe-shaped table and
announced a new partnership between ExxonMobil and Rosneft, the Russian oil company. The oil firms agreed to invest at
least $3.2 billion to develop oil beneath the Arctic Kara Sea; if the deal survived the backtracking and disputes that disrupted
so many other Russian oil deals, the total investment in the project could reach $500 billion . The United States Geo­ logical
Survey estimated that the Arctic held about 90 billion barrels of recoverable but undiscovered oil and about as much natural
gas as Russia’s onshore supplies, which were the world’s largest.” [Private Empire: ExxonMobil and American Power, pg. 621,
2012]
Favors Profits Over All Else
Multimillionaire Rex Tillerson’s number one priority throughout his life has been making money. In 2013, Tillerson told
Charlie Rose, “my philosophy is to make money.” When challenged on Exxon’s record profits, Tillerson repeatedly defended
the corporation, and stated that Exxon would not consider reducing profits in order to help out struggling Americans
struggling to fill up their gas tanks.
Under Tillerson’s leadership Exxon conducted business with human rights abusers. Explaining Exxon’s business philosophy,
Tillerson argued there was no difference whether oil came from Venezuela or the United States, and he vehemently opposed
sanctions against Russia even after the invasion of Ukraine.
TILLERSON STATED THAT HIS “PHILOSOPHY” WAS “TO MAKE MONEY”
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Rex Tillerson: “My Philosophy Is To Make Money. And So If I Can Drill, And Make Money, Then That`s What I
Want To Do.” According to the Charlie Rose Show, “CHARLIE ROSE: In terms of drilling, whether it`s Alaska or offshore
or wherever it might be, is your philosophy "drill, baby, drill"? REX TILLERSON: No, my philosophy is to make money. And
so if I can drill, and make money, then that`s what I want to do. But it really is for us it`s about making quality investments for
our shareholders. And it`s not a quality investment if you cannot manage the risk around it. And so part of that decision to
undertake whether it`s a drilling program or an investment program in some other country, we have to have a very good
understanding of what risk are we dealing with, how are we going to manage those. Because you may have a fabulous
opportunity but if you manage the risk.” [Charlie Rose Show, 3/7/13]
Tillerson Defended Extravagant Pay
In 2017, Tillerson Reported That His Employment Assets And Income Were Worth Between $260.53 Million Dollars
And $301.1 Million Dollars in 2016. According to Tillerson’s financial disclosures, his total 2016 assets were worth between
$260,530,009 dollars and $21,050,010 dollars. Tillerson’s employment assets and income were mainly comprised of his annual
salary and bonus, ExxonMobil stock units, earning bonuses from prior years, and a limited liability company which operates
his cattle ranch. [Public Financial Disclosure Report, “Part 2,” Office of Government of Ethics, Rex Wayne Tillerson, Filed
12/31/16]
2006: Rex Tillerson Defended The Compensation Package Of Outgoing Exxon Mobil CEO Lee Raymond To
Company Stockholders, Saying Raymond Deserved The $357 Million Retirement Package He Received. According
to Newsday, “ExxonMobil Corp. stockholders yesterday voted down resolutions calling on the world's largest oil company to
change polices on gay rights, climate change and executive pay. A proposal to add sexual orientation to the company's
employee anti-discrimination policy received almost 35 percent support in balloting at the company's annual shareholders
meeting in Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent of votes. The
company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions and already
prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee Raymond, saying
Raymond deserved the $357 million retirement package he received in January because he delivered record profits, and ‘led
this company through a lot of different business environments. We are clearly positioned better than our competitors, and you
have to give him credit.’” [Newsday, 6/1/06]
TILLERSON WAS NOT WORRIED ABOUT THE AVERAGE AMERICAN
Rex Tillerson On Whether Exxon Would Lower Profits To Help Out Average Americans: “That’s Not The
Business. We're In The Business To Make Money.” According to NBC’s Today Show, “LAUER: And would
ExxonMobil be willing to lower profits over the summer to help out in this time of need and crisis, as it's been described? Mr.
TILLERSON: Well, as you pointed out, we work for the shareholder. And the investors who own our stock are over two
million individual Americans and a lot of pension plans, a lot of teacher retirement plans, and our job is to go out and make
the most money for their--those people so that their pensions are secure, so that they see the benefits of our work. LAUER:
Which is, that's a no. Mr. TILLERSON: Well, that's not the business. We're in the business to make money.” [NBC’s Today
Show, 5/3/06]
Exxon Recorded Record Profits While Average Americans Faced High Gas Prices
Rex Tillerson Refused To Say Whether Exxon Had A Responsibility To Curb Profits While Individual Consumers
Were Being Impacted By High Prices. According to NBC’s Today Show, “LAUER: You--you have a responsibility to your
shareholders. You're a public company. And I think in an-nouncing your profits last week you also announced a 32 cent per
share dividend. So you are meeting your responsibility to your shareholders. The question I have for you, Mr. Tillerson, is--
does a company like ExxonMobil have any responsibility to the other people in the general public at a time when individual
con-sumers are being hurt by gas prices, companies, entire industries? Airline industry, the--the automobile industry. Does
ExxonMobil have any responsibility to curb profits and help out those people? Mr. TILLERSON: Well, I think our
responsibility, Matt, is to ensure that people have the energy they need to go about their daily lives, to continue to support the
economy, the economic growth in this country and the world over. And to do that you have to have energy. Now I
understand that when people pull up to the pump, they don't like the price. It's creating a lot of problems for people's
household budgets. Your intro segment showed how people are having to deal with that. And I understand it's very difficult
21

for a lot of families. But the alternative of not having the gasoline at all or having long lines at the pump I don't think is one
that people find very attractive either.” [NBC’s Today Show, 5/3/06]
Rex Tillerson On Exxon’s Responsibility To Curb Profits To Benefit The Consumer: “The Alternative Of Not
Having The Gasoline At All Or Having Long Lines At The Pump I Don't Think Is One That People Find Very
Attractive.” According to NBC’s Today Show, “Mr. TILLERSON: Well, I think our responsibility, Matt, is to ensure that
people have the energy they need to go about their daily lives, to continue to support the economy, the economic growth
in this country and the world over. And to do that you have to have energy. Now I understand that when people pull up
to the pump, they don't like the price. It's creating a lot of problems for people's household budgets. Your intro segment
showed how people are having to deal with that. And I understand it's very difficult for a lot of families. But the
alternative of not having the gasoline at all or having long lines at the pump I don't think is one that people find very
attractive either.” [NBC’s Today Show, 5/3/06]
Avoided Paying Exxon-Valdez Spill Damages
Under Tillerson, rather than own up to its responsibility for the 1988 Exxon-Valdez oil spill, Exxon fought local communities
that were victims of the spill tooth and nail for each dollar that was demanded in damages:
Under Tillerson, Exxon refused to pay $92 million in environmental damages related to the 1988 Exxon-Valdez spill.
Federal and state governments eventually dropped their case against Exxon, but later scientists determined that there was
significant evidence of ongoing environmental damage.
After The Supreme Court ordered Exxon to pay one-tenth of the original award in a case local officials criticized as too
favorable to Exxon, Exxon criticized the ruling and claimed it had already paid enough for the spill.
2006 – 2015: EXXON REFUSED TO PAY $92 MILLION IN ENVIRONMENTAL
DAMAGES RELATED TO THE 1988 EXXON-VALDEZ SPILL
2006: The U.S. Justice Department Re-Opened Exxon’s 1991 Settlement, Alleging The Company Owed An Additional $92 Million For
Ongoing Environmental Damage
2006: U.S. Justice Department And The State Of Alaska Re-Opened A 1991 Settlement, Claiming That Exxon Owed
An Additional $92 Million For Ongoing Environmental Damage Caused By Infamous Exxon-Valdez Spill.
According to Reuters, “More than two decades after the Exxon Valdez supertanker struck a reef and unleashed the nation’s
biggest tanker spill, a lingering legal dispute about the disaster heads back to court on Friday. At issue in a U.S. District Court
hearing in Anchorage is an unpaid $92 million claim by the U.S. Justice Department and the state of Alaska for what they
consider long-term environmental damage unexpected at the time of the grounding. The claim was made five years ago under
a special ‘reopener’ provision of the governments’ 1991 civil settlement with Exxon, in which the oil company paid $900
million.” [Reuters, 3/3/11]
Exxon Refused To Pay, So Environmentalist Rick Steiner Filed A Motion To Compel The Company To
Do So
Exxon Argued That It Should Not Be Required To Pay More As None Of The Long-Term Impacts Were “Serious
Or Surprising” And Claimed That It Already Spent More Than $4.3 Billion On Cleanup Following The Spill.
According to Reuters, “Exxon argued in a motion filed last week that it should not pay anything more for the Valdez disaster.
No long-term impacts have been serious or surprising, so no reopener payment for unforeseen damages is justified, the
company argued. ‘In fact, the more than 20 years of intensive scrutiny of the Prince William Sound ecosystem by hundreds of
scientists confirm that Prince William Sound and the oil spill area are in good ecological shape. ‘The isolated pockets of oil
residues remaining in the Sound are so effectively sheltered that they have resisted natural environmental removal for two
decades,’ the company said in its motion. ‘The Spill reconfirmed what has long been known, that oil spills have acute dramatic
effects but that they are essentially short-term events, with some isolated consequences that may persist for many years,’ the
22

company’s motion said. Exxon says it has already spent $4.3 billion as a consequence of the spill, including cleanup costs and
various legal settlements, court verdicts and criminal fines.” [Reuters, 3/3/11]
2011: Exxon Refused To Pay The $91 Million Bill, So Environmental Activist Rick Steiner Filed A Motion To
Compel The Company To Do So. According to Reuters, “Exxon has not paid the bill, and the governments have yet to take
the matter to court. Now an Alaska environmentalist is seeking to persuade a federal judge to compel Exxon to pay the $92
million, plus another $23 million in interest. At stake is more than money that could be used restore a Prince William Sound
still injured by the 11 million gallon spill, said Rick Steiner, the retired University of Alaska marine science professor and
longtime Alaska activist who filed the motion to compel the payment.” [Reuters, 3/3/11]
Former Republican Alaskan Governor Frank Murkowski Supported Steiner’s Efforts To Compel Exxon To
Pay. According to Reuters, “The state and federal governments have not responded to Steiner’s efforts with any court
documents related to his motion. But one former governor, Republican Frank Murkowski, sent a letter to the court
supporting Steiner. ‘Alaska deserves closure on this issue after 22 years,’ Murkowski, whose administration made the
reopener claim in 2006, said in his letter.” [Reuters, 3/3/11]
2015: Federal And State Governments Dropped The Case, Due To A Lack Of Admissible Evidence
2015: Federal And State Prosecutors Decided To Not Pursue More Additional Damages For Ongoing
Environmental Damage Caused By The Exxon Valdez Spill. According to Alaska Public Media, “Twenty-six years of
litigation over the Exxon Valdez oil spill ended on Thursday, Oct. 15, in a federal district court in downtown Anchorage. The
state and federal governments have decided not to pursue a final $100-million from ExxonMobil over its 1989 oil spill in
Prince William Sound. It was an anticlimactic end. The hearing Thursday morning lasted all of fifteen minutes, and no
representative from Exxon spoke. Instead, Judge H. Russel Holland — who has overseen the Exxon Valdez case from the
start — asked the state and federal governments if they had anything to add to their written filing. They said no. So the judge
himself spoke. ‘I understand that some will be displeased with the government’s decision,’ he said, ‘But based upon what’s in
your report, I’m satisfied that it was the right decision.’ ‘What is clear to me is that the process has been lengthy, it’s been
extensive, it’s been expensive,’ he said.” [Alaska Public Media, 1/15/15]
Scientists Determined In Later Years That There Was Significant Evidence Of Ongoing Environmental
Damage, But That Evidence Was Not Admissible In The Case
Environmentalist Kate McLaughlin Stated That Under The 1991 Settlement, The Government Had Only Until 2006
To Make New Claims That Could Not Be Altered Later. According to ADN, “That contrasts with the federal
government’s and Gulf states’ $20.8 billion settlement with BP for the Deepwater Horizon disaster, a deal that includes $700
million already set aside for natural resource damages to be discovered in the future, said Rick Steiner and Kate McLaughlin,
head of the environmental group Prince William Soundkeeper. A trustee will decide how to use that money, and BP has no say
in the decisions, they said. McLauglin lamented another aspect of the reopener -- the claim had to be made by 2006 and could
not be altered later, even if new information came in. Under that agreement, she said, ‘the world froze in 2006,’ she said. At
that time, government attorneys decided they could not make a convincing case to invoke the reopener to address the postspill
Prince William Sound herring crash. Since then, McLaughlin said, scientists have collected more evidence to link the spill
to the Sound’s herring woes.’” [ADN, 9/28/16]
McLaughlin Argued That After 2006, Scientists Collected Additional Compelling Evidence Of Ongoing
Environmental Impacts Caused By The Exxon Valdez Spill To Fish Populations And Development.
According to ADN, “At that time, government attorneys decided they could not make a convincing case to invoke
the reopener to address the post-spill Prince William Sound herring crash. Since then, McLaughlin said, scientists have
collected more evidence to link the spill to the Sound’s herring woes. That includes new Exxon Valdez research by the
National Marine Fisheries Service published last month that found salmon and herring embryos exposed to even very
low levels of oil developed long-lasting cardiac defects. Lingering oil will continue to harm fish, McLaughlin predicted.
‘We still have a number of threats to the Sound,’ she said. ‘The governments really let us down.’” [ADN, 9/28/16]
2008: EXXON COMPLAINED ABOUT HAVING TO PAY 1/10 OF ORIGINAL
PUNITIVE DAMAGES AWARD RELATED TO EXXON-VALDEZ SPILL
23

2008: After 19 Years Of Fighting, The Supreme Court Ordered Exxon To Pay One-Tenth Of The Original
Award In A Case Over The Spill
2008: The Supreme Court Resolved A 19 Year-Long Class Action Suit Stemming From The Exxon-Valdez Spill.
According to NPR, “A class-action lawsuit wasn’t resolved until 2008, when the U.S. Supreme Court slashed an initial jury
award of $5 billion to $507 million, plus $470 million in interest. Jim Kallander, a fisherman and former mayor of Cordova,
does not blame Exxon for mounting a defense. ‘We all need oil; accidents are going to happen,’ he says. But after 19 years of
drawn-out litigation, he continues, the final Supreme Court verdict was the hardest blow.” [NPR, 3/24/15]
Under Rex Tillerson, Exxon Mobil Was Only Required To Pay One-Tenth Of The Original Award In A Case Over
The Exxon Valdez Oil Spill, Despite Record Profits. According to the LA Times, “The Supreme Court on Wednesday
brought to a close the 19-year legal battle over the Exxon Valdez oil spill by sharply reducing the punitive damages to be paid
by Exxon Mobil Corp. The court ruled that the oil giant must pay $507 million -- about one-tenth of the original jury award --
to punish it for recklessly putting a known alcoholic in charge of a supertanker traveling a treacherous channel. The justices
described Exxon's conduct as ‘worse than negligent but less than malicious.’ Capt. Joseph Hazelwood had been drinking and
was not on the bridge when the ship ran aground on a reef in March 1989, spilling almost 11 million gallons of crude oil into
Alaska's Prince William Sound. Last year, Exxon Mobil netted a record $40.6 billion in profits. At that rate, it could pay the
punitive damages with about four days' worth of profits. But in the end, the punitive damages will amount to only a small part
of the company's payout: Exxon already has spent $2 billion on environmental cleanup and paid $1.4 billion more in fines and
compensation to thousands of fishermen and cannery workers. In a statement Wednesday, Exxon Mobil Chairman and Chief
Executive Rex W. Tillerson said that "the Valdez oil spill was a tragic accident and one which the corporation deeply regrets. . .
. We have worked hard over many years to address the impacts of the spill and to prevent such accidents from happening in
our company again.’” [LA Times, 6/26/08]
Local Officials Criticized The Ruling As Too Favorable To Exxon
Sarah Palin Was “Extremely Disappointed” With The Supreme Court’s Ruling Favorable To Exxon Mobil Related
To The Exxon Valdez Tragedy. According to Oil & Gas Journal, “ExxonMobil Chairman and Chief Executive Officer Rex
W. Tillerson issued a statement saying ExxonMobil has ‘worked hard over many years to address the impacts of the spill and
to prevent such accidents from happening in our company again.’ Alaska Gov. Sarah Palin said she was ‘extremely
disappointed’ with the Supreme Court decision. ‘While the decision brings some degree of closure to Alaskans suffering from
19 years of litigation and delay, the court gutted the jury’s decision on punitive damages,’ Palin said. ‘It is tragic that so many
Alaska fishermen and their families have had their lives put on hold waiting for this decision.’” [Oil & Gas Journal, 7/7/08]
Cordova Mayor Tim Joyce: Exxon Got A “Slap On The Wrist.” According to CS Monitor, “‘A slap on the wrist’ for
Exxon, said Tim Joyce, mayor of the fishing hub of Cordova, which was at the center of the disaster. Not long ago, some
Alaskans worried that the fishing hub would sprout ‘spillionaires’ – ordinary people suddenly rich from lump-sum Exxon
payouts. Now in Cordova, there is talk of giving up homes, fishing permits, and the town itself, said Riki Ott, a local
fisherman, scientist, and environmentalist. ‘There are some people, they look like they’ve been shellshocked.’” [CS Monitor,
6/27/08]
Exxon Claimed It Had Already Paid Enough For The Spill
ExxonMobil Spokesman Claimed The Case Was Not About Providing Compensatory Damages, But “Punishment.”
According to CS Monitor, “Some residents had already pledged anticipated punitive payments to settle debts. ‘We didn’t spill
the oil, you know, and we’re the ones being injured by this. Again,’ said Ms. Ott, who spent much of Wednesday painting
protest signs with slogans like: ‘Guilty Until Proven Wealthy.’ Anyone looking to a big punitive award as a source of more
compensation had misplaced hopes, said ExxonMobil spokesman Tony Cudmore. ‘This case was about punishment and
whether further punishment was warranted. It was not about compensatory damages.’” [CS Monitor, 6/27/08]
Exxon Argued It Had Been Punished Enough By Paying $3.4 Billion In On Cleanup And Other Settlements.
According to CS Monitor, “The company says that after spending $3.4 billion on cleanup, settlements with the Alaskan and
US governments and other groups, fines, and various types of compensation, it needed no more punishment. Legitimate
claims for compensation were handled swiftly and fairly, Mr. Cudmore said. ‘Most people who sought compensation were
compensated within a year of the spill, and the court recognized that.’” [CS Monitor, 6/27/08]
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Stiffed New Jersey On Brownfield Settlement
Under Tillerson, Exxon reached a settlement with Chris Christie and the state of New Jersey for billions of dollars less than
the state had been seeking over the cleanup of a brownfield. The deal was widely criticized and many felt Exxon should have
been required to pay for the cleanup and was treated too favorably.
NEW JERSEY PERSUED LITIGATION SEEKING TO MAKE EXXONMOBIL PAY
MORE $8.9 BILLION FOR BROWNFIELD CLEANUP
New Jersey Sought $8.9 Billion For Environmental Damage That Occurred As A Result Of Pollution From 1,700
Gasoline Stations, Two Oil Refineries And Other Sites Owned By ExxonMobil. According to CS Monitor, “ New
Jersey judge ruled Friday that environmental groups and a Democratic state senator cannot intervene in the state’s $225
million settlement with Exxon Mobil.[…] New Jersey was originally seeking $8.9 billion for natural resources damaged by
pollution from 1,700 retail gasoline stations, two oil refineries, and a number of other sites owned by the Texas-based oil and
gas provider. Shortly before Judge Hogan ruled on the case, Exxon and New Jersey announced they had reached a settlement
for $225 million.” [CS Monitor, 10/9/15]
2015: EXXON MOBIL REACHED A SETTLEMENT WITH NEW JERSEY
GOVERNOR CHRIS CHRISTIE FOR CLEANUP COSTS ASSOCIATED WITH
CONTAMINATED MOBIL REFINERY SITES LEFT IN NEW JERSEY
Exxon Mobil Reached A Settlement With Chris Christie And The State Of New Jersey For Billions Of Dollars Less
Than The State Had Been Seeking. According to the Philadelphia Inquirer, “Gov. Christie on Tuesday defended the
settlement of a lawsuit with ExxonMobil Corp. for billions of dollars less than the state had been seeking, saying the deal
would ensure the cleanup of polluted land. At a town-hall-style meeting in Somerset County, Christie said news coverage of
the state's agreement to settle the decade-old lawsuit with ExxonMobil for $225 million - compared with $8.9 billion the state
sought at trial last year - did not highlight a requirement that the company pay for remediation. ‘The idea that this has been
reported as a $225 million settlement - that's $225 million clear of fixing the problem they caused,’ Christie told more than 400
people in an elementary school gymnasium.” [Philadelphia Inquirer, 3/11/15]
THE DEAL WAS WIDELY CRITICIZED
New Jersey’s Department Of Environmental Protection Received Thousands Of Comments Opposing The Settlement.
After The Deal Was Announced, New Jersey’s Environmental Protection Agency Received Thousands Of
Comments, A Vast Majority Of Which Opposed The Settlement. According to New York Times, “After the deal was
formally announced, the state’s environmental protection agency received thousands of comments, a vast majority of them
opposing the settlement, the judge noted. The administration of Mayor Bill de Blasio of New York also called for the deal to
be rejected, saying it appeared ‘wholly inadequate’ and noting its provisions made it unlikely Exxon would ever have to pay for
separate claims concerning damage to tributaries and waterways of the New York-New Jersey Harbor estuary, which borders
New York City and New Jersey.” [New York Times, 8/25/15]
Critics Alleged The Deal Was Too Favorable To Exxon
Critics Of The Settlement Were Angered That It Did Not Require Exxon Mobil To “Clean Up The Contamination
To The Extent It Was Previously Ordered To Do.” According to the Philadelphia Inquirer, “Jeff Tittel, director of the
New Jersey Sierra Club, contended Tuesday that the settlement does not re-quire ExxonMobil to clean up the contamination
to the extent it previously was ordered to do. ‘This is a good deal, yeah, for Exxon,’ Tittel said.” [Philadelphia Inquirer,
3/11/15]
25

Former New Jersey Environmental Protection Commissioner Bradley Campbell Who Brought The Original
Charges Criticized The Deal As Too Favorable To Exxon Mobil. According to the Philadelphia Inquirer, “Christie did
not refer to the accusation levied last week by former New Jersey Environmental Protection Commissioner Bradley Campbell,
who charged in a Times commentary that Christie chief counsel Christopher Porrino ‘elbowed aside the attorney general . . .
and cut the deal favorable to Exxon.’ Campbell, who authorized the lawsuit against ExxonMobil in 2004, called the settlement
a ‘disgrace.’ Christie's office has called Campbell's allegations ‘baseless.’” [Philadelphia Inquirer, 3/11/15]
Margaret Brown, Natural Resources Defense Council: The Settlement Was A “Multi-Billion-Dollar Gift To
ExxonMobil From Gov. Christie.” According to New York Times, “The settlement, he added, ‘was the product of arm’slength,
adversarial negotiations between two highly motivated, sophisticated parties.’ Criticism of the decision was almost
immediate. Margaret Brown, a lawyer with the Natural Resources Defense Council, one of the organizations that filed a friendof-the-court
brief opposing the deal, said, ‘This is a multibillion-dollar gift to ExxonMobil from Gov. Christie and his
administration, at the expense of New Jersey residents.’” [New York Times, 8/25/15]
Troubling Response To Gulf Oil Spill
Under Tillerson, Exxon was not prepared for the Gulf Oil Spill and responded to the disaster not by focusing on cleanup and
prevention but dealing with negative PR and trying to block subsequent regulation on deepwater drilling:
Under Tillerson, Exxon did not make significant investments in disaster preparedness and admitted they were “not very
well equipped” to handle an event like the Deepwater Horizon spill.
Following the disaster, Tillerson spoke out against further regulation of deepwater drilling and tried to cast the BP spill as
an industry aberration to avoid regulation.
Tillerson pledged that Exxon would not alter their deepwater drilling practices in response to the spill, and said the “most
difficult challenge” faced by the oil and gas industry post-Gulf Spill was winning back the confidence of the American
people.
While Tillerson, sought to cast the BP Spill as an industry aberration, 10 days after the Deepwater Horizon blowout
Exxon spilled millions of gallons of oil into coastal waters off Nigeria.
UNDER TILLERSON, EXXON DID NOT MAKE SIGNIFICANT INVESTMENT IN
DISASTER PREPAREDNESS
Private Empire: Under Tillerson’s Leadership, Exxon Placed No Significant Investment In Disaster Preparedness
And Maintained Accident Response Plan Prepared By The Same Contractor As BP. According to Private Empire:
ExxonMobil and American Power, “Tillerson could hardly reject the criticism about preparedness. Under his leadership,
ExxonMobil had not invested in accident response capabilities in proportion to the new risks created by deep-water drilling.
The corporation was not especially active in the Gulf, but it was moving to increase its presence, and it pledged preparedness
in regulatory filings. The costs of preparing aggressively for a rare blowout such as the Deepwater Horizon’ s-acquiring and
positioning adequate equipment, rehearsing and planning to the same level of precision that the corporation brought to drilling
operations-might be high, but they were far from prohibitive. The record showed that ExxonMobil had not made these
investments nor urged that others in the industry do so. ‘Your [accident response] plan is written by the same contractor that
BP’s is,’ Bart Stupak, a Michigan congressman, reminded Tillerson at a hearing that summer, as oil continued to pour into the
Gulf ‘So if you can’t handle 40,000 [barrels of spilled oil a day], how will you handle 166,000 per day,’ as ExxonMobil’ s plan
claimed could be managed? ‘The answer is that when these things happen, we are not well equipped to deal with them,’
Tillerson admitted.” [Private Empire: ExxonMobil and American Power, pg. 616, 2012]
2010: Rex Tillerson Told Congress That Oil Companies “Are Not Very Well Equipped To Handle” Events Like The
BP Oil Spill In The Rare Occasions That They Occur. According to The Guardian, “ExxonMobil would have been as
powerless as BP to stop the Gulf of Mexico gusher, the chief of the world’s biggest oil company told Congress yesterday in a
contentious hearing into the oil spill. […] But the other oil executives were blocked in their attempts to cast the spill as a rare
event directly linked to shoddy safety procedures by BP when it emerged they had virtually identical spill response plans. No
26

company could have averted a disaster in the case of a blowout like the one suffered by BP, it turned out. ‘When these things
happen we are not very well equipped to handle them,’ said Rex Tillerson, chairman and chief executive of Exxon. ‘There is
no response capability that will guarantee you will never have an impact. It does not exist.’” [The Guardian, 6/16/10]
TILLERSON SOUGHT TO BLOCK REGULATION FOLLOWING GULF SPILL
2010: Rex Tillerson Told Reporters That He Was “Concerned” About “Policy Decisions That Are Being Made” In
The U.S. That Could Lead To Higher Energy Prices Such As Tax Increases Or Higher Royalty Rates For
Deepwater Exploration. According to National Post's Financial Post & Fp Investing, “The head of Exxon Mobil Corp., the
largest U.S. oil company, said yesterday that rising energy prices could damage the nascent U.S. economic recovery and
misguided energy policy could worsen the situation. ‘It does concern me that energy prices not become an obstacle to the
economy recovery,’ Exxon chief executive Rex Tillerson told reporters after a speech to a Houston civic group. ‘That’s why
I’m concerned about some of the policy decisions that are made in this country that could lead to higher prices,’ he said. U.S.
policies leading to tax increases or higher royalty rates for deepwater exploration will discourage companies from investing in
exploration pro-jects and result in higher prices, he said.” [National Post's Financial Post & Fp Investing, 4/20/10]
2010: Rex Tillerson On The BP Oil Spill: “This Incident Represents A Dramatic Departure From Industry Norms In
Deepwater Drilling […] We Do Not Proceed With Operations If We Cannot Do So Safely.” According to The
Guardian, “ExxonMobil would have been as powerless as BP to stop the Gulf of Mexico gusher, the chief of the world’s
biggest oil company told Congress yesterday in a contentious hearing into the oil spill. […] But the other oil executives were
blocked in their attempts to cast the spill as a rare event directly linked to shoddy safety procedures by BP when it emerged
they had virtually identical spill response plans. No company could have averted a disaster in the case of a blowout like the one
suffered by BP, it turned out. […] Tillerson and others said their companies would have stopped drilling when confronted
with the problems in well control experienced on the Deepwater Horizon. ‘This incident represents a dramatic departure from
industry norms in deepwater drilling,’ he said. ‘We do not proceed with operations if we cannot do so safely.’” [The Guardian,
6/16/10]
Tillerson Cast BP’s Practices That Led to the Deepwater Blowout As An Industry Aberration
Following BP’s Deepwater Horizon Disaster, Tillerson Attacked BP’s Practices As Out Of The Norm In An Effort
To Avoid “Intensive New Regulation” Due To BP’s Failure. According to Private Empire: ExxonMobil and American Power,
s the oil poured into the Gulf, Tillerson pushed ExxonMobil’s talking points into Washington’s political ecosystem. He
characterized the accident as a ‘dramatic departure from the industry norm in deep-water drilling.’ ExxonMobil would never
have made the mistakes BP made, he said. Moreover, the recklessness of BP’s operation should not catalyze intensive new
regulation because BP’s failure was so unusual.” [Private Empire: ExxonMobil and American Power, pg. 613, 2012]
Tillerson Said Exxon Would Not Change Approach, Characterized Problem as A PR Problem
2010: Rex Tillerson Said Exxon Mobil Would Not Alter Its Approach To Deep-Water Drilling In The Gulf Of
Mexico In The Wake Of The Recent BP Oil Spill. According to The Dallas Morning News, “Exxon Mobil Corp. won’t
change its approach to deep-water drilling in the Gulf of Mexico or elsewhere in the wake of the BP accident, chairman and
chief executive Rex Tillerson said Wednesday. ‘There have been more than 14,000 deep-water wells drilled, the vast majority
of them successfully,’ Tillerson said after his company’s annual meeting in Dallas. Until the facts about BP’s actions before the
fatal accident and devastating oil spill are fully investigated, it’s too early to say what effect it will have on the industry, he said.
Irving-based Exxon has a single deep-water drilling project in the Gulf of Mexico, and it is on hold while regulators sort out
the BP mess. Tillerson said he’s talked directly to BP CEO Tony Hayward and has lent equipment and consulting expertise to
BP but isn’t involved in any decision-making.” [The Dallas Morning News, 5/27/10]
2010: Rex Tillerson Said “The Most Difficult Challenge” Faced By The Oil Industry After The BP Spill Was
“Regaining The Confidence And Trust Of The Public, The American People, And […] Government Regulators.”
According to The New York Times, “For decades, the oil industry had showcased and developed its latest technology in the
Gulf of Mexico. But the spill now casts a pall over offshore oil and gas operations, just as the industry thought it had snatched
a major victory from the administration, which agreed to expand oil and gas drilling earlier this year. Rex Tillerson, the
chairman and chief executive of ExxonMobil, admitted last week that the industry faced a huge challenge. ‘The most difficult
challenge confronting the whole industry at this point is regaining the confidence and trust of the public, the American people,
27

and regaining the confidence and trust of the government regulators and the people who oversee our activities out there,’ he
said in response to questions from reporters after a shareholder meeting.” [The New York Times, 6/3/10]
AT THE SAME TIME GULF SPILL UNFOLDED, EXXON SPILLED MILLIONS OFF
THE COAST OF NIGERIA
An Exxon Oil Pipeline Ruptured, Spilling A Million Gallons Of Oil In Coastal Areas Of Eastern Nigeria, Just Ten
Days After The Deepwater Horizon Disaster. According to Private Empire: ExxonMobil and American Power, “Just ten days
after the Deepwater Horizon exploded, a ruptured ExxonMobil pipeline dumped about a million gallons of oil in coastal areas
of eastern Nigeria, soiling shorelines dotted by impoverished seaside villages. The affected area lay far from American
television news bureaus, and its kidnapping gangs made it a risky place to travel in any event. The spill barely registered. Not
all accidents can be prevented, Tillerson and ExxonMobil ‘s lobbyists acknowledged.” [Private Empire: ExxonMobil and
American Power, pg. 614, 2012]
Argued in Favor of Tax Subsidies for Oil Companies
Rex Tillerson encouraged increase tax subsidies for oil and gas companies and opposed efforts to repeal breaks. In a 2011
Congressional hearing, Rex Tillerson claimed oil companies deserved us tax subsidies for foreign taxes paid, despite evidence
that the taxes were merely royalties to foreign governments disguised as tax payments. Tillerson went as far as to call potential
repeals of tax subsidies for the oil industry “discriminatory,” “counterproductive,” and threatened to move Exxon business
overseas of Congress eliminated the tax benefits.
SUPPORTED TAX BREAKS AND SUBSIDIES FOR OIL INDUSTRY
2011: Tillerson Called For The U.S. To Provide Energy Industry With A Foreign Tax Credit, Despite
Evidence Showing The Royalties To Foreign Governments Were Often Disguised As Tax Payments.
Rex Tillerson Claimed Oil Companies Deserved US Tax Subsidies For Foreign Taxes Paid, Despite Evidence That
The Taxes Were Merely Royalties To Foreign Governments Disguised As Tax Payments. According to Federal News
Service, “MENENDEZ: Let me ask Mr. Tillerson. I've heard a vigorous defense of preserving tax rules that allow oil
companies to disguise foreign royalty payments as foreign tax payments and therefore get a U.S. foreign tax credit. Now, why
should taxpayers in the United States these subsidizing your drilling in Indonesia, where royalty payments are hidden as a 44
percent tax on oil companies? Why should U.S. taxpayers be in essence subsidizing the foreign production of oil?
TILLERSON: They're not. MENENDEZ: How are they not, when in fact that those are royalty payments. TILLERSON:
They're legitimate income taxes paid to the government of Indonesia. As I said in my statement, one of the ways our industry
is treated differently on the foreign tax code than others is that we must prove that these are income tax payments and not
royalty payments. So the Internal Revenue Service, which we house 35 auditors 365 days a year in our offices, look at those
very thoroughly. And we must prove to them that in fact they represent income taxes and not royal-ties. MENENDEZ:
Well, clearly, if you pay as a structure taxes to a foreign country, the IRS doesn't have a lot of opportunity to dispute that. But
if, in fact, you devise your agreements in such a way that having the payment of royalties be a tax, you get a deduction here in
the United States. And that simply means U.S. taxpayers are subsidizing.” [Sen. Max Baucus Holds A Hearing On Tax
Incentives And Rising Energy Prices, 5/12/11]
Tillerson Opposed Efforts To Repeal Tax Subsidies For The Oil Industry
2011: Tillerson Claimed Repealing Tax Subsidies For Just Oil Industry Was “Discriminatory”
Rex Tillerson Said Proposals To Eliminate $2 Billion In Tax Breaks For Oil Companies Was “Misinformed And
Discriminatory.” According to the New York Times, “With gas at $4 a gallon, oil at $100 a barrel and profits at near-record
levels, it is hard to feel sympathy for the oil industry. Yet sympathy is what the C.E.O.’s of the five biggest companies asked
for when they appeared Thursday before a Senate hearing on a Democratic proposal to eliminate about $2 billion in tax breaks
for the Big Five. Exxon’s Rex Tillerson called the proposal ‘misinformed and discriminatory.’ ConocoPhillips’s James Mulva,
28

in a letter, called the idea ‘un-American’ be-cause it would supposedly cost American jobs, raise consumer prices and
discourage investment -- a position he reasserted during the hearings.” [New York Times, 5/15/11]
Rex Tillerson Said Tax Subsidies Should Be Repealed For All Industries Or No Industries, Not Just Oil And
Gas Companies. According to the New York Times, “Rex W. Tillerson, chief executive of Exxon Mobil, said that
the provisions, such as a tax deduction for certain types of manufacturing, were not ‘‘special incentives, preferences or
subsidies for oil and gas, but rather standard deductions applied across all businesses in the United States.’’ He said
that eliminating the provision just for the oil industry would be ‘‘misinformed and discriminatory.’’ Under questioning
from Senator Max Baucus, Democrat of Montana, the panel’s chairman, Mr. Tillerson said that he would support
repeal of the manufacturing tax credit and other tax incentives, as long as all businesses were treated the same.
‘‘Repeal it for everybody, gone,’’ he said. ‘‘Everything for everybody everywhere ought to be on the table.’” [New
York Times, 5/13/11]
2011: Tillerson Claimed Repealing Tax Breaks For Oil Companies Was “Counterproductive” And Undermine U.S. Competitiveness
Rex Tillerson Complained That U.S. Government Regulations And Withdrawing Of Generous Tax Subsidies For
Oil Companies Was Impacting The Industries Competitiveness Globally. According to Fox News, “NEIL CAVUTO:
CEO Rex Tillerson telling me moments ago that taking away tax breaks and subsidies is one thing. Blasting the industry, his
company, for contributing to every environmental ill, well, that is quite another. (BEGIN VIDEOTAPE) REX
TILLERSON, CHAIRMAN & CEO, EXXONMOBIL: Well, I know that the -- certainly, the government is looking for ways
to generate revenue because of the -- all of the demands that they see coming in the future. But, quite frankly, energy is so vital
to economic performance and economic security in the future, that I would hope they would consider the important role that
the domestic industry plays in this country, oil and natural gas, but also the important role that the industry plays being a global
participant in the oil and natural gas supply to the world and to the United States. You know, we`re not going to achieve
energy security in the U.S. if -- unless we have global energy security. And, so, I think the industry`s participation here at
home, but also abroad is important. So, any of these -- any steps which cause the industry to be less competitive overseas or
causes the cost of development here at home to go up, ultimately, in my view, does not serve the interests of the American
people or the consumer well.” [Fox News’ Your World with Neil Cavuto, 3/5/09]
2011: Tillerson Threatened To Move ExxonMobil Investment Overseas If Oil And Gas Subsidies Were Eliminated
Rex Tillerson Told The Senate Finance Committee That Eliminating Tax Subsidies Could Cause ExxonMobil To
Move Business Investments to Other Countries. Washington Post, “Noting the deep cuts in a budget proposed by Rep.
Paul Ryan (R-Wis.) and meetings with Obama on how to narrow the deficit, Rockefeller said: “All kinds of things are going to
take enormous hits, while you’re not. We’re kind of terrified up here.” Exxon’s Tillerson replied: “I want to assure you I’m not
out of touch.” He said that between 2005 and 2010, Exxon Mobil paid an average of 32 percent in U.S. income taxes and that
a tax increase would alter investment decisions, possibly pushing investments to other nations. Tax experts noted that the tax
rate was based on income already reduced by deductions and credits. Tillerson said that if Congress wanted to eliminate the
biggest of the tax measures, one that effectively cuts the corporate income tax rate by two to three percentage points, it should
do so for all industries, not just the oil industry.” [Washington Post, 5/13/11]
PERSONAL TOP HITS
Took Advantage Tax Breaks Normally Reserved for Farmers to Avoid Taxes on
two of his Multi-Million Dollar Properties
Rex Tillerson and his wife took advantage of the Agricultural Use Reduction to significantly reduce property taxes owed on
multiple properties valued in the millions of dollars. The Agriculture Use Exemption was originally meant to benefit farmers
who “derive the majority of their income from farming or ranching.”
According to Denton Central Appraising District, the Tillerson’s $2.26 million property in Bartonville Texas was set to receive
an Agricultural Use Reduction of more than $772,000 in 2017. The Tillerson’s other ranch property, Bar RR Ranches, made
up of three properties with a combined value of $7.76 million received an agricultural use reduction exemption worth $3.78
29

million, resulting in a tax bill nearly 50% less than an equivalent property with no agricultural use reduction. In one instance,
one of the three Tillerson properties making up Bar RR Ranches benefited from a 99.75% tax decrease due to the agricultural
use reduction.
TILLERSON SET TO RECEIVE SIGNIFICANT AGRICULTURAL USE TAX
REDUCTION ON $2.26 MILLION HOME
2001: Tillerson And His Wife Purchased Property Located at 624 Dove Creek Road, Bartonville, Texas For An
Unknown Amount. On October 18, 2001, Rex and Renda Tillerson purchased property located at 624 Dove Creek Road in
Bartonville, Texas from Linda and Gerald Dinsmore for an unknown amount. [General Warranty Deed, Document #2012-
58973, Property Records Search, Denton County, Filed 11/7/01]
In 2016, The Property’s Value Was $2,261,617 Dollars. According to the Denton Central Appraisal District, Tillerson’s
property had a market property value in 2016 of $2,261,617. Such a value indicates that the property has increased in value by
43.2 percent from $2,290,489 in 2008 to $2,261,617 in 2016. [Denton Central Appraisal District, Accessed 1/3/17]
Tillerson’s property value is detailed in the table below:
Year Assessed Value Appraised Value Market Value
2016 $1,432,413.00 $1,488,932.00 $2,261,617.00
2015 $1,290,123.00 $1,290,123.00 $1,961,591.00
2014 $1,257,925.00 $1,257,925.00 $1,929,452.00
2013 $1,346,645.00 $1,346,645.00 $2,220,449.00
2012 $1,308,734.00 $1,357,427.00 $2,231,231.00
2011 $1,427,121.00 $1,208,736.00 $2,300,925.00
2010 $1,425,759.00 $1,100,000.00 $2,299,563.00
2009 $994,271.00 $994,271.00 $2,272,428.00
2008 $1,012,419.00 $1,012,419.00 $2,290,489.00
[Denton Central Appraisal District, Accessed 1/3/17]
2017: Tillerson’s Property Was Slated To Receive An Agricultural Use Tax Reduction Of Over $772,000
Dollars
As Of 2017, The Property Is Set To Receive $772,000 Dollars’ Worth Of An Agricultural Use Tax Reductions.
According to the Denton Central Appraisal District, as of January 3, 2017, the Acricultural Use Reduction for the property
located at 624 Dove Creek Road was $772,685. [Denton Central Appraisal District, Accessed 1/3/17]
Texas Law Stated That An Agricultural Use Tax Reduction Is Allowed If The Land Is Used For Agricultural
Productivity. According to the Denton Central Appraisal District, “Taxpayers may qualify for agricultural productivity
valuation under two different laws. The newer law is called ‘open-space valuation’ or ‘1-d-1 appraisal’ (after Article 8, Section
1-d-1 of the Texas Constitution). Both individual and corporate owners are eligible under this provision if the land is used for
a qualified purpose. Nearly all land that receives productivity valuation is under this law. An older law -- known as ‘1-d’ or
‘agricultural use’ appraisal -- is available only to individual owners who derive the majority of their income from farming or
ranching.” [Denton Central Appraisal District, Accessed 1/3/17]
Tillerson’s Ranch Home Offered 31,072 Square Feet Of Living Space, 18.4 Acres Of Land, Two Pools, And
An Outdoor Kitchen
Tillerson’s 18 Acre Ranch Offered Him And His Family 31,072 Square Feet Of Living Area. According to Denton
county property appraisal records, Tillerson’s two-story ranch offers 31,072 square feet of living area and 6.5 acres of land
which house a horse stable, barn and arena. The property also offers 11.88 acres of improved pasture. The property offers a
pool, a thera pool/spa, an outdoor kitchen, and a 2 car attached garage. [Denton Central Appraisal District, Accessed 1/3/17]
The Dove Creek Road Property Is Surrounded By About 20 Acres Filled With Horse Barns And Stables. According to
Denton Record-Chronicle, “The Tillersons bought their Dove Creek Road property in November 2001, a few months after
30

ExxonMobil named Tillerson senior vice president. Set up on a hillside, the two-story, brick-and-stone home is surrounded by
about 20 acres filled with horse barns, stables and arenas.” [Denton Record-Chronicle, 12/13/16]
TILLERSON RECEIVED MILLIONS IN TAX BREAKS FOR HIS BAR RR RANCHES
PROPERTIES
In 2016, The Bar RR Ranches Three Properties Combined Total Market Value Is Over $7.76 Million Dollars.
According to the Denton Central Appraiser District, the 3 parcels that make-up Bar RR Ranch had a combined total market
value in 2016 of $7,759,527.
In 2016, The Tillerson’s Received Over $3.78 Million Dollars In Agricultural Use Tax Reductions And
Thus Their Property Taxes Were 48.7 Percent Cheaper Due To This Reduction
2016: The Tillerson’s Received Over $3.78 Million Dollars In Agricultural Use Tax Reductions. According to the
Denton Central Appraiser District, in 2016, Bar RR Ranch LLC received $3,782,109 dollars in agricultural use reductions.
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 236126,”
Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 38038,” Denton Central Appraisal Office, Accessed
1/4/17]
In 2016, Tillerson’s Property Taxes Were 48.7 Percent Cheaper Than The Taxes Of An Identical Property Who Did
Not Have Agricultural Tax Exemptions. According to the tax calculator provided by the Denton County Tax Collector, in
2016, a property owner of three parcels who market value was the same as the three property plots that comprised Bar RR
Ranch and that were situated in the same county, city and special tax unit would have to pay $78,722.15 dollars more in
property taxes in 2016 since they were not granted an agricultural use reduction to their taxes.
2016: Tillerson Paid Over $11,360 Dollars Less In Property Taxes Than An Identical Property Valued At
$547,560 Dollars Due To The Agricultural Use Exemption. According to the tax calculator provided by the
Denton County Tax Collector, in 2016, The calculator calculated that in the case of Tillerson’s 12.8 property which
had a market value of $547,560 dollars, that his property taxes would be $11,367.57 dollars less than the property
taxes placed on an identical property that did not have the agricultural use exemption. [Tax Estimator Results,
“County: Denton County,” “City: Town of Bartonville,” “School: Denton ISD,” “special Unit: Denton CO ESD 1,”
“Value: 547560,” Accessed 1/4/17]
2016: Tillerson Paid Over $63,519 Dollars Less In Property Taxes Than An Identical Property Valued At
$7.02 Million Dollars Due To The Agricultural Use Exemption. According to the tax calculator provided by the
Denton County Tax Collector, in 2016, the calculator calculated that in the case of Tillerson’s 82.64 acre property
which had a market value of $7,027,709 dollars that his property taxes would be $63,519.11 dollars less than the
property taxes placed on an identical property that did not have the agricultural use exemption. [Tax Estimator
Results, “County: Denton County,” “City: Town of Bartonville,” “School: Denton ISD,” “special Unit: Denton CO
ESD 1,” “Value: 7027709,” Accessed 1/4/17]
2016: Tillerson Paid $3,825 Dollars Less In Property Taxes Than An Identical Property Valued At $184,258
Dollars Due To The Agricultural Use Exemption. According to the tax calculator provided by the Denton
County Tax Collector, in 2016, the calculator calculated that in the case of Tillerson’s 4.3 acre property which had a
market value of $184,258 dollars that his property taxes would be $3,825.27 dollars less than the property taxes placed
on an identical property that did not have the agricultural use exemption. [Tax Estimator Results, “County: Denton
County,” “City: Town of Bartonville,” “School: Denton ISD,” “special Unit: Denton CO ESD 1,” “Value: 184258,”
Accessed 1/4/17]
In 2016, Tillerson’s 12.8 Acres Of Property Had A 99.75 Percentage Tax Decrease Due To The Agricultural Tax Reduction
2009 – 2015: The Tillerson’s Paid $186.75 Dollars In Property Taxes For Their 12.8 Acre Property Lot. According to
the Denton County Tax Collector, from January 15, 2010 through December 31, 2015, the Tillerson’s have paid $186.75
31

dollars in property taxes to Denton County for property ID 236126. [Property Tax Record, “Account: 236126DEN,” Denton
County Tax Collector/Assessor, Accessed 1/4/17]
In 2016, The 12.8 Acre Property Lot (Property ID 23126) Received An Agricultural Use Tax Reduction Of $546,210.
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17]
In 2016, The Tillerson’s Property Tax For Their 12.8 Acre Property (ID Number 236126) Was Calculated To Be
$28.09. [Property Tax Record, “Account: 236126DEN,” Denton County Tax Collector/Assessor, Accessed 1/4/17]
According to Denton County, A Home Whose Market Value Equaled That Of Tillerson’s 12 Acre Property Value
Would Have To Pay Over $11,390 Dollars In Taxes In 2016. According to the Denton County Tax Collector, a property
whose market value was $547,560 dollars and did not receive any tax reductions and was located in the town of Bartonville
would have to pay the county $11,395.66 dollars in property taxes. [Tax Estimator Results, “County: Denton County,” “City:
Town of Bartonville,” “School: Denton ISD,” “Special Unit: Denton CO ESD 1,” “Value: 547560,” Accessed 1/4/17]
Tillerson, A Fracking Proponent, Joined A “NIMBY” Lawsuit Against
Frackign Near His Ranch
In 2014, Rex Tillerson joined a lawsuit aimed at preventing construction of a water tower near his property in Bartonville,
Texas that would be used for hydraulic fracking. Tillerson argued the water tower would be an eyesore and would lead to a
reduction in the value of his home. Tillerson’s participation in the lawsuit was met with condemnation due to Exxon’s open
endorsement of the value of fracking and opposition to any federal regulations that would make it more difficult to extract
shale gas in the United States. In fact, under Tillerson, Exxon made its largest deal since the merger with Mobil when it
purchased fracking giant XTO Energy. Exxon regularly lobbied against fracking regulations, and oversaw a concerted
campaign to oppose anti-fracking activists and storylines.
IN 2014 TILLERSON JOINED A LAWSUIT OPPOSING CONSTRUCTION OF
FRACKING WATER TOWER NEAR HIS BARTONVILLE, TX RANCH
2014: Rex Tillerson Joined A Lawsuit Aimed At Preventing Construction Of A Water Tower Near His Property That
Would Be Used For Hydraulic Fracking. According to MSNBC’s All in with Chris Hayes, “HAYES: So, Rex Tillerson
thinks fracking in someone`s backyard is perfectly legit, but fracking near his own backyard, now, that`s a different story. And
really, who could blame him? Tillerson and his wife own an 83-acre horse ranch in Bartonville, Texas, a Dallas suburb. It`s
worth over $5 million. A remote sprawling estate and the Tillersons would like to keep it that way. TILLERSON: We would
like to stay here a long time. I cannot stay in place where I do not know who to count on. HAYES: You see, Bartonville is
located right smack-dab in the middle of the fracking bonanza sweeping across Texas. And in order to frack, you need a ton of
water and you have to store that water somewhere in the ground or pools or 160-foot water tower like the one being built near
Tillerson`s home. Well, guess what? Tillerson and his wealthy neighbors don`t want an ugly water tower near their
multimillion dollar properties, thank you very much, so they`re suing. Tillerson and his wife have joined several of their
neighbors in a lawsuit to stop the construction of the water tower.” [MSNBC’s All In with Chris Hayes, 2/24/14]
The Water Tower Was Designed To Supply Water For Fracking. According to The Independent, “The chairman
and chief executive of ExxonMobil, Rex Tillerson (pictured with golfer Phil Mickelson at last week’s Pebble Beach
Pro-Am), is being accused of nimbyism after joining a lawsuit aimed at blocking a Texas water tower to supply water
for fracking. He is worried it will hit the value of his $5m (£3m) house next door but under Mr Tillerson’s leadership
ExxonMobil makes huge profits from fracking.” [The Independent, 2/25/14]
April 2014: Tillerson Withdrew From The Lawsuit
Rex Tillerson Withdrew From A Lawsuit Seeking To Stop Construction Of A Water Tower Near His Horse Ranch.
According to Wall Street Journal Abstracts, “Exxon Mobil Corp CEO Rex Tillerson withdraws from lawsuit seeking to
demolish water tower near his horse ranch in Bartonville, Tex; photo (M)” [Wall Street Journal Abstracts, 4/19/14]
32

TILLERSON OPPOSED THE WATER TOWER ON THE GROUNDS THAT IT
WOULD BE AN EYESORE
Rex Tillerson Opposed The Water Tower On Grounds That It Would Be Taller Than The Town Had Proposed.
According to Chicago Tribune, “It’s not every day that the chief executive of the largest U.S. energy company joins a lawsuit
opposing a water tower that could support fracking. Officials at Exxon Mobil said this week that CEO Rex Tillerson was
opposed to the plan for a tower in his neighborhood not because of fracking, but because the tower would be taller than what
his town outside Dallas had proposed. Tillerson, former Republican heavyweight Dick Armey and others sued in 2012 seeking
to block construction of the 160-foot-tall tower, arguing it would be an eyesore. The suit also noted that the tower could
encourage the town to sell water to oil and gas explorers for fracking, creating noise and traffic.” [Chicago Tribune, 2/28/14]
TILLERSON DID NOT WANT FRACKING TO IMPACT HIS HOME VALUE
MSNBC’s Chris Hayes: “You See, Armby And Tillerson Are Just Concerned About The Value Of Their Luxury
Properties Worth Multiple Millions Of Dollars.” According to MSNBC’s All in with Chris Hayes, “HAYES: The lawsuit
argues the tower, which would be used for fracking, would create a noise, nuisance and traffic hazards. You may recognize the
suit`s lead plaintiff, former House majority leader and noted environmentalist Dick Armey. You see, Armey and Tillerson are
just concerned about the value of their luxury properties worth multiple millions of dollars. A lawsuit explains that residents
simply want to live in an upscale community free of industrial properties, tall buildings and other structures that might devalue
their properties and adversely impact the rural lifestyle they sought to enjoy.” [MSNBC’s All In with Chris Hayes, 2/24/14]
AS CEO OF EXXON, TILLERSON WAS EXTREMELY PRO-FRACKING
Tillerson Orchestrated Exxon’s Largest Purchase Since Merging With Mobil, When Exxon Bought
Fracking Giant XTO Energy in 2009
Exxon Mobil’s $41 Billion Purchase Of Natural Gas Corporation XTO Energy Was Its Largest Acquisition Since
Merger With Mobil Oil Co. According to Daily Deal/The Deal, “Exxon Mobil Corp.’s proposed $41 billion purchase of
natural gas company XTO Energy Inc. is the company’s biggest deal since buying rival Mobil Oil Co. a decade ago. To close
the previous deal, Exxon was forced into an arduous antitrust review before winning government approval. Antitrust clearance
isn’t expected to be anywhere near as difficult this time because it is buying an upstream oil and natural gas supplier, not a
direct competitor. The Federal Trade Commission nevertheless is expected to take its time completing the review, in large part
because U.S. antitrust regulators are put-ting more emphasis on examining vertical deals.” [Daily Deal/The Deal, 12/14/09]
Exxon’s Purchase Of XTO Came With A Clause That Would Terminate The Sale If Congress Enacted Legislation
That Made Fracking Too Costly. According to Oil & Gas Journal, “Chairman Edward J. Markey (D-Mass.) convened the
Jan. 20 hearing of the House Energy and Commerce Committee’s Energy and Environment Subcommittee to examine energy
market impacts of ExxonMobil Corp.’s proposed $41 billion purchase of XTO Energy Corp. ‘This merger heralds a
fundamental long-term shift in US energy markets, and one that deserves our close attention,’ he said in his opening statement.
But the discussion quickly turned to hydraulic fracing [sic] because the proposed combination’s agreement includes a
termination provision if Congress enacts legislation making hydraulic fracing [sic] too costly and uneconomic. ‘This country
has a propensity to regulate. We need to protect our shareholders,’ ExxonMobil Chief Executive Officer Rex W. Tillerson told
the subcommittee.” [Oil & Gas Journal, 2/1/10]
Tillerson Lobbied Against Regulations that Would Curb Fracking in the US
Rex Tillerson Opposed Federal Involvement In Regulating Hydraulic Fracking. According to a Hearing on the
ExxonMobil-XTO Merger, “TILLERSON: I do think, as Congressman Doyle so in great detail described, the state regulation
in the state of Pennsylvania is not unusual. And most states have very detailed regulations around our drilling activities and
our hydraulic fracturing activities that govern the protection of the drinking water aquifers in all states. Those, I think, have
been tested, and they've been proven to be quite adequate. There have been over a million wells hydraulically fractured in the
history of the industry. And there is not one -- not one -- reported case of a fresh water aquifer having ever been
contaminated from hydraulic fracturing. Not one. The EPA has testified before the Congress last summer that they cannot
document a single case. The New York Water Resources Development Board investigated hydraulic fracturing. They could
33

not document any threat to safe drinking water. So I think the real question is, well, what's the need for federal oversight,
other than it's just going to add another layer to the states. That will add cost. A uniform regulation, Congressman Doyle,
would not be preferable, because the water aquifers and the geology and the structure is different for every state. And they
know their water resources and their requirements better than anyone up here is going to know. And they're going to protect
them better. And so, the states are regulating this well, and a uniform rule would actually add a layer of complexity, I think,
for the state regulator. [Rep. Edward J. Markey Holds a Hearing on the ExxonMobil-XTO Merger, 1/20/10]
Rex Tillerson Said Regulation Of Fracking Was Impeding Development Of Gas Fields “Vital To America’s
Economic Success.” According to Sydney Morning Herald, “EXXONMOBIL plans an advertising campaign to defend
natural-gas drilling techniques that landowners and environmental groups say are contaminating drinking water, causing cluster
earthquakes and polluting soil and air. Overzealous regulation of hydraulic fracturing (fracking) - used to extract tightly held
gas in deeply buried shale beds - is impeding development of gas fields ‘vital to America’s economic success’, the chief
executive of Exxon, Rex Tillerson, said yesterday after the company’s annual meeting in Dallas.” [Sydney Morning Herald,
5/27/11]
Exxon Mobile Ran Ads In Support Of Fracking
Rex Tillerson Announced That ExxonMobil Was Running Advertisements In Support Of Fracking. According to the
Detroit Free Press, “Exxon Mobil’s big push into natural gas is threatened by opposition to drilling techniques that have
unlocked buried reserves. Now the oil giant is trying to change public opinion about how it gets the gas. CEO Rex Tillerson
said Wednesday that the company is running advertisements, conducting town hall meetings and talking to regulators to
convince Americans that drilling using a method known as fracking is safe. Exxon is also paying for polling, but Tillerson said
it’s too soon to know whether its campaign is working.” [Detroit Free Press, 5/26/11]
Tillerson Downplayed Risks Posed by Fracking and Sought to Delegitimize Anti-Fracking Activists
2011: Rex Tillerson Called Opposition To Hydraulic Fracturing And Concerns Around Its Environmental Impact
“Manufactured Fear.” According to the Washington Ideas Forum, TILLERSON: “A lot of the opposition around shale gas
today and a hydraulic fracturing of storing is all manufactured fear. People have manufactured this fear. If you look at the
facts, and there have been studies that have been done by the EPA, there have been studies done by air quality bureaus, there
is no measurable health threat from hydraulic fracturing to fresh water. There is no measurable health threat related to air
emissions associated with hydraulic fracturing and that’s what the facts are. So the opponents-- I have to just characterize them
as manufacturing fear, because they have no facts to stand behind their assertions.” [Rex Tillerson at the Washington Ideas
Forum (via CSPAN), 10/6/11]
Rex Tillerson On Fracking: “As Often Happens With These Things, The Early Detractors Slap A Label On
Something And It Takes A Long Time To Peel It Off.” According to Dallas Morning News, “Exxon Mobil Corp. chief
executive Rex Tillerson defended natural gas drilling Wednesday and said he expects the company to double its North
American production in the next decade. Tillerson acknowledged at the company’s annual shareholder meeting that hydraulic
fracturing, a technique used in North Texas and elsewhere on wells, has risks, such as air pollution and water handling. But
they aren’t the risk that the public fears - groundwater contamination - and they are risks the industry can handle. Tillerson
also took the media to task for focusing on the water contamination issue. ‘As often happens with these things, the early
detractors slap a label on something and it takes a long time to peel it off. And you guys help them slap it on there,’ Tillerson
said to journalists after the shareholder meeting.” [Dallas Morning News, 5/26/11]
Rex Tillerson Said That Suggestions That Fracking Can Contaminate Drinking Water Were “Just Simply Not
Backed Up By Facts.” According to Natural Gas Week, “As the largest natural gas producer in the US, Exxon Mobil has a
lot at stake in the debate about the growing use of hydraulic fracturing. So Exxon Chief Executive Rex Tillerson did not mince
words when he addressed the issue at the company’s annual shareholder meeting in Dallas last week. ‘There are risks
[associated with fracturing] and I’m not trying to say that there aren’t. ... But there are a lot of pretty casual -- to be kind --
statements that are just simply not backed up by facts,’ Tillerson told reporters after the meeting. Tillerson was referring to
suggestions that hydraulic fracturing can contaminate drinking water supplies with methane -- the main component of natural
gas -- and various harmful chemicals. Such claims are frequently made by environmentalists, journalists, politicians and peo-ple
who live near drilling sites.” [Natural Gas Week, 5/30/11]
34

ISSUES TOP HITS
Supported Troubled Asset Relief Program (TARP)
Tillerson argued against bailouts, generally, claiming they did not fit with free-market capitalism and prevented innovation
through failure. At the same time, it appeared that Tillerson was not opposed to the Troubled Asset Relief Program (TARP).
TILLERSON SUGGESTED HE GENERALLY OPPOSED BAILOUTS
Rex Tillerson Suggested That As A “Free-Market Capitalist” He Doesn’t Think Industries Should Be Bailed Out
For Failing. According to Fox News, CAVUTO: What do you think about the -- the mentality that`s just the opposite out
today for scores of others industries, whether they be auto, or banking, financial, what have you, that are going to the
government, that are seeking taxpayer help and this sort of passing of the tin cup? TILLERSON: “Well, that`s a pretty broad
set you can get into, Neil. I`m -- you know, I am a free-market capitalist. I believe in risk- reward, that, when people take risk,
they should have the opportunity to reap the rewards. And, if the risks -- you know, if the risks don`t work out and they fail,
then they fail, and they have to move on and try something else, or let others come in and try in their place to do better. I
think there have been -- there`s a lot of steps that have been taken as we have gotten ourselves into this crisis that, when you
look backwards on those, I think a lot of us would question whether that was the prudent thing to do, if -- or if what we`re
really doing is putting off the inevitable and, in fact, creating obstacles to the next wave of innovation, because that`s one of
the ways the whole system improves itself, is to go through periods of failure, to eliminate the failed concepts or the out-ofdate
concepts, and make...” [Fox News’ Your World with Neil Cavuto, 3/5/09]
BUT SEEMED TO SUGGEST HE SUPPORTED TARP
Rex Tillerson: While, “I Have Never Favored Bailing Out, As You Call It, Particular Business Enterprises […] I
View [Financial Markets] Very Differently From Examining Individual Companies.” According to Fox News,
CAVUTO: “All right. I`m sorry. Does that mean that you would have recommended against bailing out the auto companies,
bailing out these banks?” TILLERSON: “Well, I -- I have never favored bailing out, as you call it, particular business
enterprises. Now, I think the question of what has happened with the banks and the financial markets is a much more
complicated question. And I know we could have a long conversation around how all of that happened and who is to blame
for setting the conditions around which that happened. But the problem is, once you have the problem, you have to deal with
it. And -- and the financial markets` state of -- of play and the condition they`re in, I think, obviously, because there is a
regulatory structure there, there were -- there were important steps that I think had to be taken. And I don`t want to represent
myself as some kind of financial expert around whether I think what`s been done was -- was necessarily the right thing at the
right time. But I view that as very differently from examining individual companies, business enterprises, who have made
decisions over the course of their business affairs over long periods of time that put themselves at risk of -- of failure, and --
and find themselves in a situation where, in fact, their business models are now failing.” [Fox News’ Your World with Neil
Cavuto, 3/5/09]
Climate Change Denier
Under Tillerson, Exxon Mobil routinely funded climate change denialist think tanks, like the Competitive Enterprise Institute
and the Advancement of Sound Science Coalition, an organization originally formed by Philip Morris to push back against
scientific conclusions that second hand smoke caused cancer. In 2008, following backlash from Exxon shareholders and the
public, the company promised to stop funding climate denial research; however, the company continued to fund such research
for at least two years. Even when he lamented and began to acknowledge some of the accepted scientific consensus
surrounding climate change, Tillerson maintained a level of skepticism aimed at reducing the culpability of oil and gas and
reducing the necessity for action to address climate change. As a result of its years promoting and supporting misleading
science on climate change, Exxon faced investigations from Congress and the State of New York.
35

UNDER TILLERSON, EXXONMOBIL FUNDED CLIMATE CHANGE DENIAL
RESEARCH
Exxon Mobile Funded Climate Change Deniers
Between 1998 And 2007, Exxon Spent $15.8 Million Funding Groups That Rejected “Scientific Evidence Of Human
Contribution To Global Warming.” According to Newsday, “Exxon Mobil Corp., the world's biggest gasoline maker, spent
$15.8 million since 1998 funding groups that reject scientific evidence of a human contribution to global warming, according
to a report yesterday by the Union of Concerned Scientists. Exxon gave to 43 organizations promoting ‘uncertainties’ about
global warming to delay U.S. action to curb emissions of greenhouse gases, the report said.” [Newsday, 1/4/07]
Tillerson Defended The Company, Claiming They Were Simply Funding Research To Highlight
Unanswered Questions
2006: Rex Tillerson To Accusations ExxonMobil Funds Research To Deny Climate Science: “Why Wouldn't
Everyone Want To Have A Conversation On What We Know And What We Don't Know?” According to the Dallas
Morning News, “A few shareholders asked Mr. Tillerson to address environmental concerns: Why does Exxon donate to
research organizations that question global warming? And how come Exxon doesn't invest in renewable fuels? Mr. Tillerson
said he's puzzled about accusations that Exxon supports research to debunk global warming theories. He said that's not true;
the company simply supports research that brings to light questions that haven't been answered about climate change, and that
leads to muddled conclusions. ‘Why wouldn't everyone want to have a conversation on what we know and what we don't
know?’ he said. ‘Today, there is no conclusive, scientific model or basis that you can say doesn't have a flaw in it.’” [Dallas
Morning News, 6/1/06]
Exxon Continued to Fund Climate Denial Groups into 2010, Despite Promise to End the Practice in 2008
Exxon Mobil Continued To Fund Climate-Change Denial Research Between 2008 And 2010 Despite A Pledge To
End The Practice In 2008. According to the Guardian, “At the time the oil company was the main funder of dozens of front
groups and researchers rubbishing any link between the burning of fossil fuels and climate change - or denying climate change
was occurring at all. Among the recipients was Willie Soon, the Harvard-Smithsonian researcher who received more than $1m
(£0.7m) from industry, according to documents obtained by Greenpeace through freedom of information filings. In a report
released on the eve of their 2008 annual general meeting, the oil company pledged to stop funding groups that promote
climate denial. However, the company continued funding Soon for three more years. The documents show that Exxon gave
Soon an additional $76,106 from 2008 to 2010, despite claiming to have stopped.” [Guardian, 3/27/15]
AND, TILLERSON PERSONALLY DONATED TO EXXON-RELATED PACS THAT
FUNDED CLIMATE-SKEPTIC POLITICIANS
Guardian: “US Oil Industry Leaders, Including Exxon Mobil Chief Executive Rex Tillerson, Make Contributions
To Their Own Corporate Pacs - Money Which In Many Cases Can Then Be Traced To Inhofe And Other Climate-
Sceptic Politicians.” According to the Guardian, “PACs exist in the US where companies and trade unions cannot give
directly to the campaigns of those running for office. Instead funds are pooled from staff - often senior executives - into a
PAC, and disbursed by a committee board, often in a manner sympathetic to the company's lobby and other interests. Other
US oil industry leaders, including Exxon Mobil chief executive Rex Tillerson, make contributions to their own corporate PACs
- money which in many cases can then be traced to Inhofe and other climate-sceptic politicians.” [Guardian, 3/23/15]
EVEN WHEN ACKNOWLEDGING SOME FACTS ABOUT CLIMATE CHANGE,
TILLERSON CONTINUED TO DENY OTHERS
For Years, Tillerson Continued To Deny Scientific Consensus On The Level Human Impacts Played on
Climate Change
2011: Rex Tillerson Downplayed The Human Effects On Climate Change And Argued Environmental Policy Should
Not Be Designed Solely Around The Understanding Of That Known Human Component. According to Fair
36

Disclosure, “REX TILLERSON: […] There is a consensus that human activity without question contributes to that risk, but
there is also recognition that the complexities of climate science involve many elements that are still not well understood by
the scientific community. And it is important if we are going to formulate policies around the human component of that
challenge that we understand what is the impact of those policies going to be. Are they going to produce a measureable benefit
or are they not? And in order to do that, it means you have to understand other elements of the climate system that the science
communities quite frankly struggles with still today. And so we continue to fund a number of activities to better help the
scientific community hopefully better understand this very complicated climate system. Very elegant climate system that we
enjoy on planet earth. So I think oftentimes people view that funding as somehow funding people who don't believe in a
particular position around the direct effect of human contribution. I don't think any of us have ever suggested that we don't
believe human activity contributes. The question is, we all also know and the scientific community knows there are a lot of
other things going on.” [Fair Disclosure, 5/25/11]
2013: Rex Tillerson Stated There Has Been Nothing To Confirm A Link Between Severe Weather Incidents And
Climate Change. According to the Charlie Rose Show, “CHARLIE ROSE: And we`ve had a series of weather incidents and
some people believes there is a link between those weather incidents, Hurricane Sandy and others and what`s happening in
terms of global warming. Do you believe there is some link there? REX TILLERSON: I have seen no scientific studies to
confirm. CHARLIE ROSE: Not a specific storm but -- nothing. In terms of those kinds of direct outcomes, you see no link?
REX TILLERSON: There has been nothing to confirm that there is a link. And I -- and we look at the studies and most of
the -- most of the concerns people have that there is a link it is a hypothesis at this point. And so in science you have a
hypothesis, now you must go and conclude and confirm the hypothesis.” [Charlie Rose Show, 3/7/13]
EXXON FACED CRITICISM AND INVESTIGATIONS INTO ITS FUNDING OF
CLIMATE CHANGE DENIAL SCIENCE FROM CONGRESS AND THE STATE OF
NEW YORK
2006: Senators Snowe And Rockefeller Accused Exxon Mobil Of Impeding Progress By Funding Of
Climate Change Deniers Such As The Competitive Enterprise Institute
Olympia Snowe And John D. Rockefeller IV Sent A Letter To Rex Tillerson Demanding That ExxonMobil Cease
Funding The Competitive Enterprise Institute And Other Global Warming Skeptics. According to the Washington
Times, “Sens. Olympia J. Snowe and John D. Rockefeller IV, in a letter to the chairman of ExxonMobil Corp., demanded that
the oil giant cease funding the Competitive Enterprise Institute and other global warming skeptics. ‘In light of the adverse
impacts still resulting from your corporation's activities, we must request that ExxonMobil end any further financial assistance
or other support to groups or individuals whose public advocacy has contributed to the small, but unfortunately effective,
climate change denial myth,’ the two senators said in a letter to Rex W. Tillerson, chairman and chief executive officer of
ExxonMobil. The letter was dated Friday.” [Washington Times, 11/2/06]
2006: Olympia Snowe And John D. Rockefeller IV Accused ExxonMobil Of Carrying Out A “Climate Change
Denial Strategy” And Funding Climate Denial Research Since The Late 1990s. According to the Washington Times,
“After congratulating Mr. Tillerson for reaching the helm of the oil giant, Republican Sen. Olympia J. Snowe of Maine and
Democratic Sen. John D. Rockefeller IV of West Virginia cut straight to the chase, criticizing the so-called ‘climate change
denial strategy carried out by and for Exxon Mobil’ against global warming. In the three-page letter obtained by Inside the
Beltway, the senators say it's their understanding that Exxon Mobil is ‘the primary funder of no fewer than 29 climate-change
denial front groups in 2004 alone.’ In addition, they write, ‘Exxon Mobil has spent more than $19 million since the late 1990s
on a strategy of 'information laundering,' or enabling a small number of professional skeptics working through scientificsounding
organizations to funnel their viewpoints’ through various media.” [Washington Times, 11/2/06]
2007: Congress Investigated ExxonMobil’s Funding Of Climate Skepticists
2007: Rex Tillerson Was Asked By The Chairman Of A House Investigations Panel For Documentation Detailing
ExxonMobil Grants To Climate Skeptic Organizations. According to Platts Oilgram News, “ExxonMobil is drawing fire
again for giving financial support to ‘climate skeptic’ organizations, and has been asked by the chairman of a House
investigations panel to provide related tax forms and a complete list of all corporate grants awarded in 2006 and thus far in
2007, by recipient, and the amount and purpose of the awards. ‘The support of climate skeptics, many of whom have no real
grounding in climate science, appears to be an effort to distort public discussion about global warming,’ House Science
37

Investigations and Oversight Subcommittee Chairman Brad Miller, Democrat, North Carolina, said in a letter May 17 to
ExxonMobil Chairman Rex Tillerson. ‘So long as popular discussion could be about whether warming was occurring or not,
so long as doubt was widespread, consensus for actions could be postponed.’” [Platts Oilgram News, 5/22/07]
2015: New York State Investigated Exxon For Misleading The Public On Climate Change
2015: Rex Tillerson’s ExxonMobil Came Under Investigation In New York State For Allegedly Misleading The
Public On Climate Change In 2014. According to the National Post, “At ExxonMobil's annual shareholders meeting in
May, Rex Tillerson, the silver-haired chief executive officer and chairman of the biggest oil company in the world, did
something he hadn't before in his last 10 such presentations: He addressed climate change head-on. For several minutes, he
talked about Exxon's investments in biofuel and carbon-capture technologies, its efforts to cut its greenhouse gas emissions by
8.8 million tonnes since 2011, equivalent to taking two mil-lion cars off the road, and how its scientists have spent decades
studying climate change, a risk he said ‘warrants thoughtful action.’ Tillerson had no choice but to address the elephant in the
room. Six months earlier, Exxon had come un-der investigation by New York's attorney general for allegedly misleading the
public on climate change. Its shareholders wanted answers, too.” [National Post, 10/29/16]
Opposed American Energy Independence
Tillerson is a frequent and outspoken critic of calls to support American Energy Independence, going so far as to side with
Saudi Arabia after the country lodged a formal complaint over President George W. Bush’s call to reduce American
dependence on foreign oil. According to Tillerson, it did not matter where energy was produced, just that it was produced
economically. Tillerson claimed President Bush objective was “misguided,” that American energy independence was
“impossible,” and called for increase interconnectedness of global oil markets.
TILLERSON OPPOSED POLICIES AIMED AT ENERGY INDEPENDENCE,
ARGUING GLOBAL ENERGY TRADE AND FREE MARKETS WOULD ACHIEVE
ENERGY SECURITY
Exxon’s Preferred Foreign And Energy Policy Would Accept “The Interconnectedness Of Global Oil Markets” And
Reject Fantasies Of Independence, And Recognize The Centrality Of Oil And Gas To The Energy Economy For
Decades. According to Private Empire: ExxonMobil and American Power, “To Tillerson and other ExxonMobil executives, Bush’s
speech signaled how flawed and politicized American energy policy had become. If Tillerson and his Management Committee
could write their own foreign and energy policy for the United States, it would involve, first, an acceptance of the
interconnectedness of global oil markets-and an end to fantasies about national ‘independence’ from those markets; and
second, a recognition that carbon-based fuels would be central to the energy economy for decades, even if a significant tax on
carbon was imposed eventually to address the risks of global warming. From those premises, ExxonMobil’s executives would
construct a deliberate, country-by-country strategy to maximize oil and gas supply through free-market competition and to
enforce the sanctity of commercial contracts to support that effort.” [Private Empire: ExxonMobil and American Power, pg.
440-441, 2012]
2007: Rex Tillerson: “The Global Free Market For Energy Provides The Most Effective Means Of Achieving U.S.
Energy Security.” According to The Dallas Morning News, “The U.S. needs to promote better access to oil and gas from
around the globe instead of trying to achieve energy independence by looking at homegrown alternatives to petroleum, Exxon
Mobil Corp.’s top executive said Friday. ‘The global free market for energy provides the most effective means of achieving
U.S. energy security,’ Rex Tillerson, chairman, president and chief executive of the Irving-based energy giant, said in a speech
at the Council on Foreign Relations in New York.” [The Dallas Morning News, 3/10/07]
Rex Tillerson: “Energy Made In America Is Not As Important As Energy Simply Made Wherever It Is Most
Economic.” According to Private Empire: ExxonMobil and American Power, “‘The central reality is this: The global free market
for energy pro­ vides the most effective means of achieving U.S. energy security,’Tillerson said. ‘In the global market, the
nationality of the resource is of little relevance. . . .Energy made in America is not as important as energy simply made
wherever it is most economic.’ Punishing sanctions and uneconomic supply lockups such as those sometimes pursued by
38

China did undermine American security, but only because the United States should be ‘enlarging this global energy pool, not
dividing it.’” [Private Empire: ExxonMobil and American Power, pg. 246, 2012]
Tillerson Believed President Bush’s Push For Energy Independence Was “Misguided”
Tillerson Sided With Saudi Officials And Diplomats Insulted By Bush’s Rhetoric And Argued That Pursuing
Energy Independence Was “Not Attainable” And “Misguided.” According to Private Empire: ExxonMobil and American
Power, “After the speech was delivered, Saudi officials and diplomats from other oil producers aligned with the United States,
who felt they had been insulted, protested formally to the White House. ‘It upset the Saudis,’ the senior official recalled.
‘Demarches followed that speech.’4 In Irving, Rex Tillerson sided with the Saudis. He believed, as did ExxonMobil’s
Management Committee, that ‘energy independence is not attainable, not any time in the foreseeable future,’ and that its
pursuit was not desirable because it would set the United States on ‘misguided courses’ that might raise the cost of energy in
the American economy, destroy jobs, and disrupt trade alliances around the world.5 As for Middle Eastern oil, in particular, it
represented less than a quarter of American oil imports, and the percentage seemed likely to decline in the future, as African,
Canadian, and other sources of supply grew. Most Middle Eastern oil went to Asia, and more would head east in the future.”
[Private Empire: ExxonMobil and American Power, pg. 439, 2012]
Claimed American Energy Independence Was “Impossible”
2007: Rex Tillerson Said It Is “Impossible” For Countries Like The U.S. To Achieve Energy Independence,
Explaining That Their Economies Need Diverse Sources Of Oil And Gas. According to The Globe and Mail, “In the
round-table, Mr. Tillerson said that it is ‘impossible’ for countries such as the U.S. to secure energy independence, stating that
access for countries to diverse sources of oil and gas were essential in order to minimize supply disruptions from events such
as hurricane Katrina. A cornerstone of U.S. President George W. Bush’s energy policy has been to develop domestic sources
of energy in order to reduce foreign dependence. ‘History shows this approach is often counterproductive, leads to
inefficiencies, higher prices, supply shortages and at times even trade wars,’ he said. Mr. Tillerson said that increased energy
efficiency was crucial if rising global energy demand, particularly from developing countries such as China, was to be met. He
added that that rising energy prices would ultimately force consumers to make more energy efficient lifestyle choices.” [The
Globe and Mail, 9/8/07]
2006: Rex Tillerson Rejected As Flawed Policy The Idea That US Can Really Become Energy Independent.
According to the Wall Street Journal, “Jeffrey Ball The Week Ahead column predicts petroleum executives will argue that
government needs to help them find new supplies of oil and natural gas; Exxon Mobil Corp Chmn and CEO Rex Tillerson
rejects as flawed policy idea that US can really become energy independent; says government should open additional areas to
exploration and drilling if it is serious about boosting domestically-produced oil supply.” [Wall Street Journal, 3/11/06]
Tillerson Claimed Congressional Proposal To Achieve Energy Independence Hurt Investment In Oil And
Gas
2007: Rex Tillerson Criticized Energy Bills Under Consideration By Congress Because They Created Obstacles To
Investing In Oil And Gas And Misguidedly Pursed A Policy Of Energy Independence. According to Platts Oilgram
News, “Pausing outside an API board meeting room, ExxonMobil CEO Rex Tillerson criticized the current parade of energy
bills under consideration by Congress, saying ‘They just have a number of flaws.’ […] The ExxonMobil chief commented on
the US energy legislation after a reporter asked him about a reported recent meeting he had with US House Speaker Nancy
Pelosi to discuss the elimination of $15 billion in tax breaks to the oil industry. But neither Tillerson nor an ExxonMobil
spokesman would confirm that he actually met with Pelosi. Tillerson said the legislation raises obstacles in the way of
investments for oil and gas interests. He said the bills are misguided in pursuing energy independence, which he noted is
different from energy security.” [Platts Oilgram News, 10/16/07]
Claimed Energy Independence Would Produce No Impact On U.S. –Middle East Relations
Rex Tillerson Believed The U.S. National Security Relationship In The Middle East Would Not Fundamentally
Change If The U.S. Became Independent Of The Need For Middle Eastern Oil. According to the Council on Foreign
Relations, MR. MURRAY: So oil doesn't drive those relationships and won't even if we could wean ourselves from all their
oil. MR. TILLERSON: I have never felt oil drove the -- were the only underpinnings in those relationships. It is important
39

not just because we get our oil, because if you really look at the amount of oil we physically get, it's important, but we could
replace it with a little higher cost. It's more a question of the importance of that region to global economic stability. And
we're going to still be interested in that. So if you have a supply -- if we're no longer getting any oil from the Middle East
because we're secure here, a disruption of oil supplies from that region will have devastating impacts on global economies.
Now is that important to us? Prob-ably so. So I'm not sure it changes the relationship dramatically. I think it may redefine the
priorities around the relationship, but I'm not sure it changes it dramatically.” [Council on Foreign Relations, 6/27/12]
Opposed Alternative Energy Development
In order to protect Exxon’s investment in oil and gas, Tillerson adamantly opposed policies and regulations that encouraged
development of alternative sources of energy. Under Tillerson, Exxon failed to follow the lead of other large energy
corporations to invest in alternative energy, instead criticizing government subsidies and taxes that would finance alternative
energy research.
Tillerson regularly pushed the narrative that oil and gas would inevitably continue to dominate the energy landscape, and
fostered doubt about the viability of alternative energy carrying the burden of global energy demands.
OPPOSED ALTERNATIVE ENERGY SUBSIDIES AND PUBLIC INVESTMENT IN
RENEWABLES
2013: Opposed Government Subsidies To Support Alternative Energy
Rex Tillerson Criticized Government Subsidies And Intervention In Pursuit Of Alternative Energy. According to the
Charlie Rose Show, “CHARLIE ROSE: So you are saying you want to see government plant more seed money in terms of an
investment, of the alternative possibilities. REX TILLERSON: And there are good models for this. There are good models in
the national labs. There are great models through Darfa. There are models out there that have served us well. CHARLIE
ROSE: It gave us the Internet. REX TILLERSON: We just -- we have -- we have so much intervention right now in these
energy markets that in my view it`s not been healthy for the advancement of those alternatives. CHARLIE ROSE: You`re
saying less regulation and more research. REX TILLERSON: More fundamental research, less mandates, I mean wind has
received subsidies for more than 20 years now. Maybe if we took the subsidy off and it was challenged and had to perform,
people would take it to a new level. They haven`t had to. They haven`t had to.” [Charlie Rose Show, 3/7/13]
2008: Opposed Taxes On Oil Companies To Finance Alternative Energy Research
Rex Tillerson Said A Windfall Profits Tax On Oil Companies To Finance Research Into Alternative Fuels Was
Unfairly Targeting A Specific Industry And Would Be A Disaster. According to The New York Times, “Q.Would it be
wrong then for government to tax windfall profits to finance research into alternative fuels? A. Why would you want to tax
windfall profits to do so? Why target a specific industry when you are looking to raise revenue? The last time government
taxed windfall profits, it was a disaster. Why would you want to do so again? Any taxing program that targets a specific
industry is never a very good idea.” [The New York Times, 7/19/08]
UNDER TILLERSON, EXXONMOBIL SPURNED INVESTMENT IN
ALTERNATIVE ENERGY
Exxon Mobil Did Not Invest Significantly In Renewable Energy
Exxon Mobil Failed To Follow Other Large Oil Companies In Significantly Investing And Exploring Renewables
And Alternative Energy Sources. According to the International Herald Tribune, “But with gasoline prices soaring and
concern growing over global warming, Exxon, the biggest of the investor-owned oil companies, is a target for politicians and
environmentalists. Chevron, BP and Shell, Exxon’s largest competitors, have given their investments in renewable fuels a
much higher profile. Similar or identical environmental proposals have failed at Exxon shareholder meetings, but the public
support of the Rockefeller family has given old efforts new energy.” [International Herald Tribune, 5/28/08]
40

Tillerson Resisted The Obama Administration’s Push To Increase Investment In Alternative Energy
2009: Rex Tillerson Adamantly Resisted The Progressive Obama Energy Agenda, Arguing “Nothing Has Really
Changed” For Exxon Mobil’s Pursuit Of Fuel Sources Despite Obama’s Proposal For $150 Billion Investment In
Alternatives. According to The New York Times, “‘In my view, nothing has really changed,’ Rex W. Tillerson, the chief
executive of Exxon Mobil, said after the election of President Obama. ‘We don’t oppose alternative energy sources and the
development of those. But to hang the future of the country’s energy on those alternatives alone belies reality of their size and
scale.’ The administration wants to spend $150 billion over the next decade to create what it calls ‘a clean energy future.’ Its
plan would aim to diversify the nation’s energy sources by encouraging more renewables, and it would reduce oil consumption
and cut carbon emissions from fossil fuels.” [The New York Times, 4/8/09]
FOSTERED DOUBT ABOUT THE VIABILITY OF ALTERNATIVE ENERGY
Exxon And Tillerson Pushed The View That Fossil Fuels Were Necessary
Rex Tillerson: “The World Is Going To Have To Continue Using Fossil Fuels, Whether They Like It Or Not.”
According to the Telegraph, “'The world is going to have to continue using fossil fuels, whether they like it or not." There's
little disguis-ing the defiance in the words of Exxonmobil chief Rex Tillerson. In a Dallas concert hall, less than six months
after the historic global climate deal in Paris, the long-standing leader of the world's largest listed oil company locked horns
with shareholders in an increasingly familiar battle for Big Oil.” [Telegraph, 6/12/16]
Tillerson Claimed Biofuels, Alternative Energy Sources Capabilities Would Be Limited Far Into The
Future
2004: Rex Tillerson Claimed Wind And Solar Power Could Only Meet 1% Of World Energy Demand By 2030.
According to Platts Oilgram News, “Of more importance to ExxonMobil and other Western oil companies, however, is the
eventual role for foreign investors, and he said: ‘The answer is not real clear yet. They know they need foreign participation.
It's just a question of letting them sort that out.’ Outlining projections for global energy needs, he warned economic growth
will outpace annual energy demand growth of 2% but assured the audience oil and gas resources exist worldwide to meet the
need. While saluting the potential growth for contributions from wind and solar power, Tillerson dismissed the final impact
of their role, saying they can provide only about 1% of world energy needs by 2030. As a result, he said the traditional oil and
gas industry must meet the challenge and debunk the myth that other sources of energy will fill the void. ‘That silver bullet in
not realistic,’ he said.” [Platts Oilgram News, 12/9/04]
2007: Rex Tillerson: “Even With Double Digit Growth In [Energy] Alternatives, Those Alternatives Will Account
For No More Than 2 Per Cent In 2030.” According to the Irish Times, “Chairman and chief executive of Exxon Rex
Tillerson said ultimate responsibility for controlling CO2 emissions lay with consumers of energy. ‘You can't talk about climate
change without putting in the context of energy consumption . . . You can look at almost any forecast and in the year 2030
that consumption is going to grow by 50 per cent.’ Mr Tillerson said alternative energy sources would not provide a
meaningful substitute in the foreseeable future. ‘Even with double digit growth in alternatives, those alternatives will account
for no more than 2 per cent in 2030.’” [Irish Times, 1/26/07]
ADVOCATED INVESTMENT IN FOSSIL FUEL EFFICIENCY OVER
ALTERNATIVE ENERGY TO ADDRESS CLIMATE CHANGE
Rex Tillerson Supported Research Into Making Fossil Fuels More Efficient And Opposed Significant Investment In
Alternative Energy Sources That Could Be More Environmentally Friendly. According to The New York Times,
“Q.You were an early critic of biofuels, and you once referred to ethanol as ‘moonshine.’ What role do you see for alternative
fuels, including ethanol? A. There is no question in my mind that we will develop a replacement fuel for conventional motor
gasoline. But we will also develop other ways to use fossil fuels for transportation that are more efficient and more
environmentally friendly. We’ve made the point that we’re spending our time and effort to look at what is the next
technological leap for transportation fuels, and what are the technologies that Exxon possesses that can contribute to that
breakthrough.” [The New York Times, 7/19/08]
41

Opposed LGBT Rights
At both Exxon and the Boy Scouts of America, Tillerson proved to be no friend of LGBT rights.
Under Tillerson, Exxon was criticized as too slow to adopt protections for LGBT employees.
Under Tillerson, Exxon twice voted down resolutions adding sexual orientation to Exxon’s anti-discrimination policy.
Under Tillerson, Exxon faced a discrimination lawsuit claiming the company discriminated based on sexual orientation.
As president of the Boy Scouts, Tillerson maintained the ban on openly LGBT scouts and scout leaders.
UNDER TILLERSON, EXXON WAS CRITICIZED AS TOO SLOW TO ADOPT
PROTECTIONS FOR LGBT EMPLOYEES
New York Times: Under Tillerson’s Leadership, “Exxon Was Slow To Adopt Explicit Policies Protecting Gay
Employees From Discrimination.” According to the New York Times, “Mr. Tillerson is not always easy to define. Deeply
conservative and committed to the Boy Scouts of America, he quietly pushed the organization to be open to gay rights. But
under his leadership, Exxon was slow to adopt explicit policies protecting gay employees from discrimination.” [New York
Times, 12/11/16]
Exxon’s Refusal To Adopt Specific Policy Barring Discrimination Against Gay Employees Put Them
Behind Many Other Fortune 500 Companies. According to Dallas News, “Despite increasing pressure from gay
rights advocates, Exxon has refused to create a specific policy barring discrimination against gay employees, as many
Fortune 500 companies have done.” [Dallas News, September 2014]
UNDER TILLERSON, EXXON VOTED DOWN RESOLUTIONS ADDING SEXUAL
ORIENTATION TO EXXON’S ANTI-DISCRIMINATION POLICY
2006: Exxonmobil Opposed A Stockholder Resolution Calling On The Company To Add Sexual Orientation To Its
Employee Anti-Discrimination Policy, Saying The Company Already Prohibited All Forms Of Discrimination.
According to Newsday, “ExxonMobil Corp. stockholders yesterday voted down resolutions calling on the world's largest oil
company to change polices on gay rights, climate change and executive pay. A proposal to add sexual orientation to the
company's employee anti-discrimination policy received almost 35 percent support in balloting at the company's annual
shareholders meeting in Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent
of votes. The company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions
and already prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee
Raymond, saying Raymond deserved the $357 million retirement package he received in January because he delivered record
profits, and ‘led this company through a lot of different business environments. We are clearly positioned better than our
competitors, and you have to give him credit.’” [Newsday, 6/1/06]
2014: Exxon Voted Down A Proposal To “Prohibit Discrimination Against Gay And Lesbian Employees.” According
to the Dallas Morning News, “Shareholders introduced a proposal that Exxon set goals for reducing greenhouse gas
emissions. But the company's board opposed the move, and it was voted down by more than 75 percent of shareholders.
Proposals to limit Exxon board members' participation on other corporate boards and prohibit discrimination against gay and
lesbian employees also failed.” [Dallas Morning News, 5/29/14]
UNDER TILLERSON, EXXON FACED A DISCRIMINATION LAWSUIT CLAIMING
THE COMPANY DISCRIMINATED BASED ON SEXUAL ORIENTATION
42

Rex Tillerson’s ExxonMobil Faced A Discrimination Lawsuit From An Organization Claiming The Company
Discriminated Based On Sexual Orientation. According to the International Herald Tribune, “This past week Freedom to
Work, a gay advocacy group, filed suit against Exxon Mobil in Illinois, claiming discrimination based on sexual orientation.
The group sent the company two fictitious résumés for a job opening in Patoka, Illinois. One résumé had stronger
qualifications but identified the applicant as gay. Exxon Mobil responded to the lesser-qualified applicant’s résumé and made
several follow up phone calls. The gay résumé received no reply.” [International Herald Tribune, 5/25/13]
2015: Illinois Department Of Human Rights Found “Substantial Evidence” Of Anti-Gay Discrimination At
ExxonMobil. According to the Washington Blade, “Nonetheless, in January 2015, the Illinois Department of Human Rights
announced it found ‘substantial evidence’ of anti-gay discrimination at ExxonMobil and enough for the case ‘to be heard
before a trier of fact so that credibility can be determined.’ That finding prompted Freedom to Work to file a complaint before
the Illinois Human Rights Commission, where the litigation remains ongoing. Mike Theodore, a spokesperson for the Illinois
Department of Human Rights, confirmed for the Washington Blade late Monday ‘the matter is still pending before the Illinois
Human Rights Commission,’ but didn’t have any information on when it would be resolved.” [Washington Blade, 12/14/16]
AS PRESIDENT OF THE BOY SCOUTS, TILLERSON MAINTAINED BAN ON
OPENLY LGBT SCOUTS AND SCOUT LEADERS
Rex Tillerson Maintained The Boy Scouts Of America’s Ban On Gay Scouts And Scout Leaders During His Tenure
As National President Of The Organization. According to the New York Times, “Mr. Tillerson, a former Eagle Scout, was
national president of the Boy Scouts of America from 2010 to 2011, while the Boy Scouts maintained its ban on gay scouts
and scout leaders, and is a member of the Scouts’ national executive board, which voted this past week to lift the ban on gay
scouts (but not gay scout leaders). Eight years into his tenure as Exxon Mobil’s chief executive, the company’s position hasn’t
budged. No one doubts that if Mr. Tillerson threw his support behind the issue, the company’s policy would change.” [New
York Times, 5/24/13]
CONFLICTS WITH TRUMP AND THE RIGHT WING
Conflict With Trump: Tillerson Is A Free Market Globalist
Donald Trump rode an anti-globalization revolt into the White House, pledging to enact an agenda that rejected international
trade agreements and the dogma of free trade.
Now that he’s been elected, Donald Trump seems to be changing his tune, selecting, Rex Tillerson, CEO of ExxonMobil, as
his pick for Secretary of State. Rex Tillerson, CEO of ExxonMobil, supports everything Trump railed against during his
campaign. While Trump called for a neo-isolationist foreign policy of “America First,” Tillerson is an avowed internationalist.
While Trump advocated for the imposition of a 45% tariff on imported Chinese goods, Tillerson called protectionism “an
unhealthy attitude.” While Trump threatened to rip up international free trade agreements and referred to the Trans-Pacific
Partnership (TPP) as “just a continuing rape of our country,” Tillerson called the TPP “one of the most promising
developments” for “international cooperation and energy trade.”
The Secretary of State is charged with executing the administration’s international trade policy. By selecting Rex Tillerson for
this role, Trump is providing yet more proof that his campaign was simply an elaborate con on the American people.
FAVORS FREE TRADE, INTERNATIONAL TRADE AGREEMENTS; OPPOSES
PROTECTIONISM
Rex Tillerson Is a Proponent of Free Trade and Open Markets
Rex Tillerson: “History Is Clear And Unequivocal: Free Trade Lifts The Prospects Of Nations And Improves The
Lives Of People Across Borders, Regions, And Oceans.” According to World Gas Conference, “In recent weeks, there
have positive signs on this front in the United States. Congress has been debating Trade Promotion Authority. If passed, it
43

would give President Obama authority to move forward on two major, pending free-trade agreements: the Trans-Pacific
Partnership, which would strengthen the economic relations among 11 nations in the Asia-Pacific region, and the Transatlantic
Trade and Investment Partnership, which would increase trade between the U.S. and European Union. Completing such
agreements would revitalize the global discussion of – and renew the appreciation for – the value of international trade and
investment. History is clear and unequivocal: Free trade lifts the prospects of nations and improves the lives of people across
borders, regions, and oceans.” [Rex Tillerson, World Gas Conference, Paris, France, 6/2/15]
Rex Tillerson: “We Must Embrace The Free Flow Of Energy, Capital, And Human Talent Across Oceans And
Borders.” According to the Asia Society Global Forum, “We must embrace the free flow of energy, capital, and human talent
across oceans and borders. If we do, the energy industry has proven that we will forge the long-term partnerships and develop
the new technologies to unlock sources of energy safely and responsibly. We will strengthen energy security for all nations.
And we will build new bridges of trade and progress between countries and continents.” [Rex Tillerson, Asia Society Global
Forum, 6/13/13]
Rex Tillerson: “I Am A Free Trade Proponent. And I Think Net-Net It Is Positive […] Anytime You Eliminate
Barriers To Our Ability To Move […] Our Products […] To Achieve The Highest Value, That's A Good Thing For
Us. According to the Exxon Mobil Corporation 2014 Analyst Meeting, REX TILLERSON: “I am not agnostic, because I
am a free trade proponent. And I think net-net it is positive for -- it is positive for everyone first, but it's positive for us.
Anytime you eliminate barriers to our ability to move our feedstocks, or our products or our molecules around to get -- to
achieve the highest value, that's a good thing for us. And I think it's a good thing for US economic and trade policy as well.
That's the pitch we make always is this is a great opportunity to allow the US to get the highest value for its own natural
resources, and to allow the manufacturers to utilize these molecules, whether you are refiner, a petrochemical plant or an
industrial process that uses natural gas or whatever, to have access to the best slate of feedstocks they can put their hands on.”
[Exxon Mobil Corporation 2014 Analyst Meeting, 3/5/14]
Rex Tillerson Supports The Trans-Pacific Partnership
Rex Tillerson Supported The Trans-Pacific Partnership And Said It Would “Strengthen The Economic Relations
Among 11 Nations In The Asia-Pacific Region.” According to World Gas Conference, “In recent weeks, there have
positive signs on this front in the United States. Congress has been debating Trade Promotion Authority. If passed, it would
give President Obama authority to move forward on two major, pending free-trade agreements: the Trans-Pacific Partnership,
which would strengthen the economic relations among 11 nations in the Asia-Pacific region, and the Transatlantic Trade and
Investment Partnership, which would increase trade between the U.S. and European Union. Completing such agreements
would revitalize the global discussion of – and renew the appreciation for – the value of international trade and investment.
History is clear and unequivocal: Free trade lifts the prospects of nations and improves the lives of people across borders,
regions, and oceans.” [Rex Tillerson, World Gas Conference, Paris, France, 6/2/15]
Rex Tillerson Called The Trans-Pacific Partnership “One Of The Most Promising Developments” For
“International Cooperation And Energy Trade.” According to the Asia Society Global Forum, “Even when a nation
does not have a rich endowment of resources, we have learned that open markets and free trade can bring nations the energy
supplies they need. But only governments can open the avenues of free trade. In the years ahead, as the economy and energy
landscape evolves worldwide, leaders in the United States and Asia will need to examine how their own policies can support
international cooperation and energy trade. One of the most promising developments on this front is the ongoing effort for
the Trans-Pacific Partnership. The eleven nations that have been working to lower trade barriers and end protectionist
policies under this Partnership are a diverse mix of developed and developing economies. But all of them understand the value
of open markets to growth and progress for every nation. The prospects for the Trans-Pacific Partnership were recently
strengthened as the participating nations announced they will welcome Japan’s entry into the Partnership.” [Rex Tillerson,
Asia Society Global Forum, 6/13/13]
Rex Tillerson Supports NAFTA
Rex Tillerson Praised NAFTA For Fostering A “Close Relationship” Between Canada, Mexico And The United
States’ Economies. “So again, coming back to North America and the size of the resource endowment, Canada has a huge
resource endowment; the United States has a huge resource endowment; Mexico has a huge resource endowment. All three
countries manage that resource endowment differently, but these three countries also have a long-standing historic relationship
in free trade through NAFTA and, because of NAFTA, have a close relationship through their economies, through co-
44

investing in one another. And certainly between the three of us, there's a long historical relationship in energy supply.”
[Council on Foreign Relations Meeting with Rex W. Tillerson, 6/27/12]
Rex Tillerson Opposes Protectionism And Trade Barriers
Rex Tillerson Called Protectionism “An Unhealthy Attitude” That “Sends The Wrong Message As To What
America Really Is About To The Rest Of The World.” According to CNBC/Dow Jones Business, “BARTIROMO: Do
you worry that we`re getting too protectionist? I mean first it was the CNOOC acquiring Unocal. There was a big problem
with that. And then it was Dubai. Are we getting too protectionist in the country? TILERSON: I think it`s an unhealthy
attitude for our country because we are looked at by the rest of the world as the home of free enterprise, the home of
freedom, and openness, and yet we erect these barriers. And I think it sends the wrong message as to what America really is
about to the rest of the world. That`s not what America is about.” [CNBC/Dow Jones Business Video, 3/8/06]
Rex Tillerson: “Trade Barriers, Punitive Taxes, Artificial Subsidies And Other Market Manipulations” Hurt U.S.
Energy Security. “Trade barriers, punitive taxes, artificial subsidies and other market manipulations may appear to some to
be in the interest of U.S. energy security. But to the extent they inhibit development and diversification of global economic
energy supply, they clearly are not. A more effective means of strengthening U.S. energy security is by facilitating free trade
and investment, promoting stable fiscal, tax and regulatory systems, strengthening partnerships between producing and
consuming countries and taking other steps that expand and fortify a global free market for energy. [Rex Tillerson, Council on
Foreign Relations Meeting, 3/9/07]
REX TILLERSON OPPOSES ENERGY INDEPENDENCE; WANTS A GLOBAL
ENERGY MARKET
Rex Tillerson Opposes Energy Independence
Rex Tillerson Criticized Advocates Of “So-Called Energy Independence” As Isolationists And Added Like Those
Who Vanquished Isolationism “We Must Choose The Course Of Greater International Engagement.” According to
Council on Foreign Relations Meeting, “In the very first issue of Foreign Affairs, statesman and founding council member
Elihu Root wrote, and I quote, ‘No nation whose citizens trade and travel need consider whether it will be a member of the
community of nations. It is compelled by the situation. Because of this,’ he said, ‘there is a pressing demand for popular
education in international affairs.’ Now, Root wrote this at a time when Americans were debating whether to choose an
isolationist foreign policy or an internationalist one. The Council on Foreign Relations advocated the latter, and thankfully, this
view eventually carried the day. Today a similar debate is taking place regarding energy security: Should the United States seek
so-called energy independence in an elusive effort to insulate this country from the impact of world events on the economy, or
should Americans pursue the path of international engagement, seeking ways to better compete within the global market for
energy? Like the council’s founders, I believe we must choose the course of greater international engagement.” [Rex Tillerson,
Council on Foreign Relations Meeting, 3/9/07]
Rex Tillerson: “Energy Independence Is Not Only Unrealistic And Unachievable […] I`m Not Sure It`s Even
Desirable.” . According to Nightly Business Report, “GHARIB: What is your view of President Bush`s comments that
Americans are addicted to oil and that we must become energy independent? Is that realistic? Is that achievable?
TILLERSON: Well, we`ve said for some time that energy independence is not only unrealistic and unachievable, I guess I
would add I`m not sure it`s even desirable. From the standpoint of we live a global community, our economies are
interdependent and since energy is such a part of the economic growth, it`s only natural that some of the energy supply
demand is going to be interdependent as well.” [Nightly Business Report, 3/8/06]
Rex Tillerson: “I Think Energy Independence Is Not Realistic For The United States Or Almost Any Other
Country.” According to ABC News, “CHARLES GIBSON (ABC NEWS) (Off-camera) Let me talk politics for you for a
little bit because energy is very much in the political sphere right now. We keep hearing from politicians that we need to get
energy independence. Is that a pipe dream? REX TILLERSON (CHAIRMAN & CEO Well. I think energy independence is
not realistic for the United States or almost any other country. We are going to continue to require imports of our energy for
as long as anyone can foresee, certainly well into the middle of this century.” [ABC News, 8/13/08]
45

Rex Tillerson On Efforts To Achieve Energy Independence: “History Shows This Approach Is Often
Counterproductive, Leads To Inefficiencies, Higher Prices, Supply Shortages And At Times Even Trade Wars.”
According to The Globe and Mail, “In the round-table, Mr. Tillerson said that it is ‘impossible’ for countries such as the U.S.
to secure energy independence, stating that access for countries to diverse sources of oil and gas were essential in order to
minimize supply disruptions from events such as hurricane Katrina. A cornerstone of U.S. President George W. Bush’s energy
policy has been to develop domestic sources of energy in order to reduce foreign dependence. ‘History shows this approach is
often counterproductive, leads to inefficiencies, higher prices, supply shortages and at times even trade wars,’ he said. Mr.
Tillerson said that increased energy efficiency was crucial if rising global energy demand, particularly from developing
countries such as China, was to be met. He added that that rising energy prices would ultimately force consumers to make
more energy efficient lifestyle choices.” [The Globe and Mail, 9/8/07]
Rex Tillerson Said “Isolationist Or Protectionist Energy Policies Which Could Have Severe Consequences For The
Global Economy And For Global Energy Security Over The Longer Term.” According to London Stock Exchange
Aggregated Regulatory News Service, “Exxon Mobil Corporation (NYSE:XOM) Chairman and Chief Executive, Rex
Tillerson, today called for a renewed commitment by energy producing and consuming nations to open markets and
international trade as the means to meet pressing global energy challenges. During his Special Address to the 20th World
Energy Congress in Rome on November 12, Mr. Tillerson said the international energy industry had a long history of
advancing technology to develop new energy supplies -- and to deliver these to the consumer via an efficient and open
international marketplace. ‘If we are to build a more secure future for our generation and those that follow, we must renew our
commitment to the values of international trade and open markets,’ Mr. Tillerson said. ‘Unfortunately, current conditions and
emerging challenges have led some to pursue isolationist or protectionist energy policies which could have severe
consequences for the global economy and for global energy security over the longer term.” [London Stock Exchange
Aggregated Regulatory News Service, 11/12/07]
Rex Tillerson Wants A Global Energy Market
Rex Tillerson: “The Global Free Market For Energy Provides The Most Effective Means Of Achieving U.S. Energy
Security.” “Those are some of the perceptions and the realities, but the central reality is this: the global free market for
energy provides the most effective means of achieving U.S. energy security by promoting resource development, enabling
diversification, multiplying our supply channels, encouraging efficiency, and spurring innovation. The global markets for oil
and natural gas help mitigate the impact on American consumers of sudden supply shocks, price spikes and chain breaks.”
[Rex Tillerson, Council on Foreign Relations Meeting, 3/9/07]
2007: Rex Tillerson: “The Key To Innovation And Creativity Needed To Address Global Energy Challenges Lies In
Free Markets And Strong International Partnerships.” According to Oil & Gas Journal, “Resource nationalism is
threatening the world’s economy and energy security in the long term, Rex Tillerson, ExxonMobil Corp. chairman and chief
executive officer, told the World Energy Congress last week in Rome. ‘The key to innovation and creativity needed to address
global energy challenges lies in free markets and strong international partnerships,’ he said.” [Oil & Gas Journal, 11/19/07]
FAVORS INTERNATIONALISM; OPPOSES ISOLATIONISM
Rex Tillerson Endorsed The View Of Elihu Root That The U.S. Must Maintain An Internationalist Foreign Policy
Over An Isolationist One. According to the Council on Foreign Relations, “Now, [Elihu] Root wrote this at a time when
Americans were debating whether to choose an isolationist foreign policy or an internationalist one. The Council on Foreign
Relations advocated the latter, and thankfully, this view eventually carried the day.” [Council on Foreign Relations, 3/9/07]
46

Hits From The Right
Under Tillerson, Exxon did not oppose the Iran Nuclear Deal and indicated that if it fostered the ability for U.S. companies to
invest in Iran, the company would consider it.
Tillerson supported acknowledged the seriousness of climate change, favored a carbon tax as one approach to curbing
greenhouse gas emissions, and viewed coal as obsolete.
Tillerson “strongly” supported the Obama Administration’s race-to-the top initiative, and saying that Common Core was a set
of standards that every state should adopt. Tillerson was an ardent supporter of Common Core standards, praising it in the
business world, penning an op-ed about its benefits, and criticizing legislators who bashed it.
DID NOT OPPOSE IRAN NUCLEAR DEAL
As Exxon Chief, Tillerson Did Not Oppose The Iran Nuclear Deal, As It Could Potentially Open Markets For The
Company. While appearing on The Situation Room With Wolf Blitzer, Gloria Borger said, “GLORIA BORGER, CNN
CHIEF POLITICAL ANALYST: Look, I think we know what Donald Trump believes. At this point we don’t know what
Rex Tillerson believes. We know what he’s done as the CEO of Exxon, where he did an awful lot of business with Russia. He
became a friend of Vladimir Putin’s. But we also don’t know, for example, Wolf, what would he do on the Iran nuclear deal?
He wasn’t opposed to the Iran nuclear deal. I should say Exxon wasn’t necessarily, because it would open, potentially, oil
markets for them. They were for TPP at one point. They did not -- Tillerson did not oppose the Paris climate deal.”
[International Wire, 12/13/16]
ACKNOWLEDGED THE CLIMATE CHANGE AS A SERIOUS ISSUE
2006: Rex Tillerson: ExxonMobil Believes “Climate Change Is A Serious Issue.” According to the Sunday Telegraph,
“Tillerson is happy to discuss the issue at length. Exxon holds that, despite gaps in the scientific evidence, ‘climate change is a
serious issue'’ and that ‘what we know is that carbon emissions are one of the factors that contribute to climate change’, he
says. The company is adamant that the substance of its position has not changed - just that it is clarifying its long-held position
on global warming. Exxon, Tillerson adds, is a strong advocate of energy efficiency and is investing in research for alternative
fuels, citing its contribution to the Global Climate and Energy Project at Stanford.” [Sunday Telegraph, 8/27/06]
2006: Rex Tillerson: “We Recognize That Climate Change Is A Serious Issue. […] We Recognize That Greenhouse
Gas Emissions Are One Of The Factors Affecting Climate Change.” According to the New York Times, “If Rex W.
Tillerson has his way, Exxon Mobil will no longer be the oil company that environmentalists love to hate. Since taking over as
Exxon's chairman three months ago from Lee R. Raymond, his abrasive predecessor who dismissed fears of global warming
and branded environmental activists ‘extremists,’ Mr. Tillerson has gone out of his way to soften Exxon's public stance on
climate change. ‘We recognize that climate change is a serious issue,’ Mr. Tillerson said during a 50-minute interview last week,
pointing to a recent company report that acknowledged the link between the consumption of fossil fuels and rising global
temperatures. ‘We recognize that greenhouse gas emissions are one of the factors affecting climate change.’” [New York
Times, 3/30/06]
Tillerson Suggested The U.S. Should Take Steps To Cut Greenhouse Gas Emissions
2006: Rex Tillerson: The US “Should Take Steps Now To Cut [Greenhouse Gases] Emissions Efficiently And
Effectively.” According to Platts Oilgram News, “Rex Tillerson, ExxonMobil’s CEO, told a Boston business group this
month the US ‘should take steps now to cut [GHG] emissions efficiently and effectively.’ For some, this was a sea change in
ExxonMobil's thinking. Pro-business environmental group Environmental Defense touted Tillerson's comment in a press
release. But others wonder whether ExxonMobil is changing its climate change view or simply engaged in ‘messaging’ to
47

urnish its image with investors and the public. ‘Until Exxon calls for a mandatory cap on emissions, I'm not convinced,’ said
Greenpeace climate change coordinator Kert Davies.’” [Platts Oilgram News, 12/18/06]
Tillerson Acknowledged Climate Change Risks Were “Significant”
2007: Rex Tillerson: “The Risks To Society And Ecosystems From Climate Change Could Prove To Be Significant.”
According to the New York Times, “But it was on the subject of global warming that Tillerson drew the most interest from
energy leaders at the conference, which was organized by the energy consulting firm Cambridge Energy Research Associates.
‘The risks to society and ecosystems from climate change could prove to be significant,’ said Tillerson. ‘So, despite the
uncertainties, it is prudent to develop and implement sensible strategies that address these risks.’” [New York Times,
2/15/07]
SUPPORTED A CARBON TAX
Tillerson Supported A “Revenue Neutral” Carbon Tax
Rex Tillerson Offered Support For A System Of “Uniform And Predictable” Pricing Of Carbon “Across The
Economy” To Reduce Carbon Emissions. According to Platts Oilgram News, “Efforts to reduce carbon emissions must
maximize the use of market mechanisms, and achieving a uniform and predictable cost for carbon is crucial to the success of
these efforts, ExxonMobil CEO Rex Tillerson said June 21. ‘In general, we believe that maximizing the use of markets to
select and deploy technologies will best serve society’s interests in the long term and meet future energy needs,’ Tillerson said.
‘And we believe achieving a uniform and predictable cost for carbon across the economy will enable market mechanisms to
work effectively to this end.’” [Platts Oilgram News, 6/25/07]
Rex Tillerson Said He Supported A “Revenue Neutral” Carbon Tax. According to the New York Times, “Ten of the
world's big oil companies, mainly from Europe, have jointly acknowledged that their industry must help address global climate
change and said that they agreed with the United Nations' goals of limit-ing global warming. […] Rex W. Tillerson,
ExxonMobil's chief executive, has repeatedly said he would support putting a price on carbon as long as it was ‘revenue
neutral.’” [New York Times, 10/19/15]
TILLERSON IS ANTI-COAL
Under Tillerson’s ExxonMobil Bet On Natural gas And Against Coal
Exxon Mobil Predicted Natural Gas “As The Fuel Of The Future” And Expected North American Shale To “Help
The US Meet More Than Half Of Its Gas Needs” By 2030. According to Platts Oilgram News, “Natural gas is emerging
as the fuel of the future as developing nations increase their power generation needs through 2030, according to global energy
behemoth ExxonMobil. And the industry will need trillions of dollars in investment during the next two decades to meet
global energy demand, which is expected to grow by 65% in developing nations, the company concluded December 8 in its
annual ‘Outlook for Energy: A View to 2030.’ But the world’s largest oil company also said it expects the development of
North American shale plays will help the US meet more than half of its gas needs from unconventional supplies by 2030.
‘There will be an expansion of natural gas supply, particularly in the US where unconventional gas supplies are expected to
satisfy more than 50% of gas demand by 2030,’ the company said.” [Platts Oilgram News, 12/9/09]
Guardian: “With Natural Gas Prices Languishing At Historic Lows, The Deal Is A Sign That Exxon Sees
Long-Term Prospects In Gas As An Alternative To Coal.” According to Guardian.Com, “ ‘XTO’s strengths,
together with Exxon Mobil’s advanced R&D and operational capabilities, global scale and financial capacity, should
enable development of additional supplies of unconventional oil and gas resources, benefiting consumers both here in
the US and around the world,’ said Tillerson. With natural gas prices languishing at historic lows, the deal is a sign that
Exxon sees long-term prospects in gas as an alternative to coal. Once the deal is wrapped up, Exxon said it would
establish a new upstream organisation to manage so-called ‘unconventional’ resources which were once regarded as
too inaccessible to tap cost-effectively.” [Guardian.Com, 12/14/09]
Tillerson Thinks Coal Becoming Obsolete Is A Good Thing
48

Rex Tillerson Said Natural Gas Was Key To Environmental Progress Because Of Its Ability To Displace Coal.
According to Platts Oilgram News, “Tillerson placed gas at the forefront of the effort to meet future growth in energy
demand, which he saw as a constant challenge, despite talk of potential oversupply in the short term. ExxonMobil expects
unconventional gas production to rise 400% over the next three decades, he said, pointing out that by 2025 natural gas would
overtake coal as the second most important energy source after oil. Natural gas, he said, was key to combining environmental
progress with economic development, referring both to its flexibility as an energy source and its ability to displace coal.
Tillerson’s comments came the same day as the International Energy Agency said it sees US’ break-neck pace of shale and
unconventional gas developments allowing the country top overtake Russia as the world’s biggest gas producer in 2017.”
[Platts Oilgram News, 6/6/12]
Rex Tillerson Said ExxonMobil Believes Natural Gas Superior To Coal In “Power Generation” And “Producing
Fewer Greenhouse Gas Emissions.” According to The Dallas Morning News, “Exxon officials expect demand for natural
gas to grow strongly. They plan to develop XTO into a global company to develop ‘unconventional’ resources, or natural gas
and oil in fields that require new technology to drill. Shale gas is an example. ‘Exxon Mobil’s energy outlook indicates that gas
will grow more rapidly than any other major energy source given its availability and relatively low carbon profile,’ Exxon chief
executive Rex Tillerson said. ‘We believe gas is the fuel of choice for power generation, producing fewer greenhouse gas
emissions than other electrical-generation fuels, such as coal.’” [The Dallas Morning News, 6/26/10]
Tillerson Favors the Regulation of Greenhouse Gases
Rex Tillerson Called For Tougher Fuel-Economy Standards And Curbing Greenhouse-Gas Emissions From Coal-
Fired Power Plants. According to The Seattle Post-Intelligencer, “Tough mileage standards needed, Exxon chief says
Tougher fuel-economy standards for U.S. cars and pickup trucks are necessary to reduce tailpipe emissions that contribute to
global warming, said Rex Tillerson, chief executive officer at Exxon Mobil Corp., the world’s biggest gasoline maker.
Policymakers must also curb greenhouse-gas emissions from coal-fired power plants to slow atmospheric warming linked to
the burning of fossil fuels, Tillerson told a gathering of executives and academics Thursday at Boston College. ‘We should take
steps now to reduce emissions in effective and meaningful ways,’ he said. ‘We should start on a path to reduce the likelihood
of the worst out-comes.’” [The Seattle Post-Intelligencer, 12/01/06]
UNDER REX TILLERSON, EXXONMOBIL ENDORSED THE PARIS CLIMATE
AGREEMENT
Rex Tillerson’s ExxonMobil Supported The Paris Climate Agreement. According to the New York Times, “Mr.
Tillerson assumed the role of chairman and chief executive of Exxon Mobil in January 2006, and during his tenure the
company acknowledged, for the first time, the science underlying climate change. It has said it supports the creation of a
carbon tax, which most Republicans have opposed, and it also supported the Paris climate agreement, a major focus of Mr.
Kerry's time in office. Mr. Trump has vowed to abandon the climate pact. In May, Mr. Tillerson told shareholders that ‘we
believe that addressing the risk of climate change is a global issue,’ adding that it would require the cooperation of
governments, businesses and individuals.” [New York Times, 12/10/16]
SUPPORTED OBAMA ADMINISTRATION EDUCATION INITIATIVES
Strongy Supported Obama Administration Race to the Top Initiative
Rex Tillerson Said Exxonmobil “Strongly Support[s]” The Obama Administration’s Race To The Top Initiative.
According to the Education Nation Summit, “Regrettably, in the states that are pushing back. I think the genesis of this is
when the President--President Obama--and the Secretary of Education Arnie Duncan in the Race to the Top Initiative, which
we strongly support, adopted the common core state standard as the way to measure how are you doing in the race to the
top. The immediate reaction by some states was, 'wait a minute, Feds are trying to take over our educational system.' That is
just simply not true. It is absolutely not true. This is a set of standards that every state should adopt.” [Rex Tillerson,
Education Nation Summit, 10/10/13]
MAJOR SUPPORTER AND BOOSTER OF COMMON CORE
49

Washington Post: “Exxonmobil’s Rex Tillerson Was A Big Booster Of Common Core.” According to the Washington
Post, “Rex Tillerson, chairman and chief executive of ExxonMobil who is being reported as President-elect Donald Trump’s
leading choice for secretary of state, was a prime mover of the Common Core State Standards Initiative in the business
world.” [“ExxonMobil’s Rex Tillerson was a big booster of Common Core,” Washington Post, 12/10/16]
Rex Tillerson Gave Speeches Promoting Common Core And Lobbied Politicians To Stick To The Policy.
According to the Washington Post, “Tillerson gave speeches promoting the [common] core — and he lobbied policymakers in
states to stick with the core when some began to back away during a revolt from across the political spectrum against the
initiative. For example, in a 2013 letter to leaders of Pennsylvania’s state legislature and then-Gov. Tom Corbett (R), Tillerson
went as far as reminding them of the ‘significant operations’ ExxonMobil had in Pennsylvania.” [“ExxonMobil’s Rex
Tillerson was a big booster of Common Core,” Washington Post, 12/10/16]
Penned 2013 Wall Street Journal Op-ed Defending Common Core
Rex Tillerson Called “On Leaders From Government And Business, And Parents, Need To Defend The Common
Core State Standards,” Which Are “Increasingly Under Attack From Across The Political Spectrum.” According to
the Washington Post, “As a nation, we must unite in recognizing the mounting evidence that the U.S. is falling behind
international competitors in producing students ready for 21st-century jobs. According to the most recent Program for
International Assessment, U.S. students rank 14th in the world in reading, 17th in science and 25th in math—and the trend
line is moving in the wrong direction. We have an opportunity to reverse this trend but it will take setting the right priorities.
That starts with establishing high standards. It means leaders from government and business, and parents, need to defend the
Common Core State Standards, which have been adopted wholly or in part by dozens of states in recent years but are
increasingly under attack from across the political spectrum.” [“How to Stop The Drop in American Education,” Op-ed, Rex
Tillerson, 9/5/13]
Rex Tillerson Said Criticism That Common Core Was “Takeover Of Local Schools By Big Government”
“Misguided.” According to the Washington Post, “These voluntary, state-driven standards are a set of expectations for the
knowledge and skills that students from kindergarten to 12th grade need to master for college and career readiness. Some
oppose the standards, complaining that they undermine the autonomy of teachers; others decry the standards as a takeover of
local schools by big government. The criticism is misguided. The Common Core State Standards are based on the best
international research. They are built on the standards used by the most effective education systems around the world,
including Singapore, Finland, Canada and the U.K. The standards are also designed to allow each state to make its own
decisions regarding the curriculum, technology and lesson plans to be used in local schools. In other words, the standards
stipulate what we want all students to know and be able to do, but each state retains the explicit authority to determine how it
teaches its students. The standards are a tool to help educators, not a straitjacket for them.” [“How to Stop The Drop in
American Education,” Op-ed, Rex Tillerson, 9/5/13]
Criticized Texas’ Elected Leaders For Bashing Common Core
Rex Tillerson Said He Was “Extraordinarily Disappointed In My Home State” Over Texas Elected Officials
Distorting Common Core. According to the Dallas Morning News, “The CEO of Texas' largest company said Wednesday
that elected leaders in his state and elsewhere have badly distorted a nationwide push for common academic standards for
public schools, bashing the so-called Common Core curriculum even as U.S. students and workers alike fall further behind
their global peers. ‘I'm extraordinarily disappointed in my home state,’ Rex Tillerson, chairman and chief executive of Irvingbased
Exxon Mobil, said during a quarterly meeting of Business Roundtable. He and other CEOs were highlighting what
business leaders have called a major impediment to hiring: the lack of technical skills among job-seekers of all ages.” [Dallas
Morning News, 12/4/14]
50

OVERVIEW
Name: Rex Wayne Tillerson 1
Born: March, 1952, Wichita Falls, TX 2
SSN: 446-50-XXXX
Home: 624 Dove Creek Rd Argyle, TX 76226 3
Education: B.S.C.E., University Of Texas At Austin (1975) 4
Family:
Religion:
Career:
Renda R. Tillerson, Born September, 1956, SSN 459-13-XXXX
4 Children 5
Exxon Corporation, Chairman & Chief Executive Officer (2006 – Present)
Exxon Corporation, President Of The Corporation & Member Of The Board Of Directors (2004 – 2006)
Exxon Corporation, Senior Vice President Of Exxon Mobil Corporation (2001 – 2004)
Exxon Corporation, Executive Vice President Of Exxonmobil Development Company (1999 – 2001)
Exxon Corporation, Vice President Of Exxon Ventures (CIS) Inc. & President Of Exxon Neftegas Limited
(1998 – 1999)
Exxon Corporation, President Of Exxon Yemen Inc. & Esso Exploration & Production Khorat Inc.
(1995 – 1997)
Exxon Corporation, Production Advisor (1992 - 1995)
Exxon Company, General Manager Of The Central Production Division (1989 - 1992)
Exxon Company, Production Engineer (1975 – 1989) 6
Organizations: American Petroleum Institute, Member Of The Executive Committee And Former Chairman
Society of Petroleum Engineers, Member
Center For Strategic And International Studies, Trustee
National Petroleum Council, Member
Business Roundtable, Member
Business Council, Member
Business Council For International Understanding, Honorary Trustee
Emergency Committee For American Trade, Member
National Academy Of Engineering, Member
Ford’s Theatre Society, Vice-Chairman 7
Boy Scouts of America, National President (2010 – 2012) 8
United Negro College Fund, Director 9
Chancellor’s Council, Member
Development Board, Member
Engineering Advisory Board For The University Of Texas At Austin, Member
Emergency Committee For American Trade, Member 10
1 Nexis Comprehensive Person Report, “Rex W. Tillerson,” www.nexis.com
2 Nexis Comprehensive Person Report, “Rex W. Tillerson,” www.nexis.com; Dallas News, September 2014
3 Ibid
4 The University of Texas at Austin Cockrell School of Engineering, accessed 12/12/16
5 Forbes, accessed 12/12/16
6 Exxon Mobil, accessed 12/12/16
7 Ibid
8 USA Today, 12/6/16
9 Exxon Mobil, accessed 12/12/16
10 CSIS, accessed 12/12/16
51

Childhood and Education
CHILDHOOD
BIOGRAPHY AND BACKGROUND
As A Child, Rex Tillerson And His Family Moved From Wichita Falls, Texas, To Stillwater, Oklahoma, To
Huntsville, Texas, For His Father’s Job With The Boy Scouts. According to the Dallas Morning News, “Tillerson’s
connection to Scouting extends back before he was even born 62 years ago. His parents met at Boy Scout camp as teenagers.
His father, Bob, worked at the camp and met his mother, Patty, while she was visiting her brother; sparks flew over a singalong.
After serving on a battleship during World War II, Bob returned to North Texas and eventually took a full-time job
with the Scouts, a career that would span four decades. As the family moved between Boy Scout offices in Wichita Falls,
Stillwater, Okla., and Huntsville, Scouting was ever-present for Tillerson. As a child and into adolescence, he racked up not
just merit badges but some of Scouting’s highest awards, designated for leadership abilities and dedication. To this day,
Tillerson lists his rank of Eagle Scout on his résumé. And he maintains a reputation in the business world for honesty and
straightforwardness, traits some interpret as proof that despite his success and wealth, he remains a Boy Scout to his core.”
[Dallas Morning News, 9/6/14]
Rex Tillerson Was An Eagle Scout. According to the Dallas Morning News, “Mr. Tillerson's colleagues and friends praise
his congeniality and generosity. As a board member for the Boy Scouts of America's Circle 10 Council in North Texas, the
Eagle Scout helped raise millions of dollars. And despite his schedule as a top Exxon executive, during the giving campaign,
‘he never missed any meetings,’ said Don Burke, director of finance for the Circle 10 Council.” [Dallas Morning News,
12/25/05]
Wichita, Texas, 1952 – 1958
Rex Tillerson Grew Up In A Modest One-Story House In A Working-Class Neighborhood Called Faith Village In
Wichita Falls, Texas. According to Private Empire: ExxonMobil and American Power, “The Tillersons lived in a modest onestory
house in a working-class neighborhood called Faith Village that had been erected for returning veterans. When Rex was
six, his father, Bobby Joe, who had been a bakery salesman, took a job that would change the family's destiny: He became
assistant district executive for the Boy Scouts of America's Wichita Falls Council. The family moved several times during Rex's
childhood before Bobby Joe took a job in the Sam Houston Council, one of the country's largest, and settled in Huntsville,
Texas.” [Private Empire: ExxonMobil and American Power, pg. 333, 2012]
Rex Tillerson Grew Up In Wichita Falls. According to Dallas Morning News, “A Wichita Falls native, Mr. Tillerson joined
Exxon in 1975 as a production engineer after earning a degree in civil engineering at the University of Texas at Austin. He
now oversees oil exploration and production activities that accounted for more than two-thirds of the company's $21.5 billion
in profit last year. The company's overall 2003 revenue was $246.7 billion.” [Dallas Morning News, 2/27/04]
Vernon, Texas, 1958 - 1961
1958: Rex Tillerson’s Family Moved To Vernon, Texas, From Wichita Falls, Texas. According to The Vernon Daily
Record “These Are New Neighbors. Bob Tillerson and his wife, Patty, moved to Vernon from Wichita Falls. They live at
2229 Herbert Street with three children, Jo Lynn, 10, Rex, 6, and Rae, 4. Mr. Tillerson is District Scout Executive. He was
Scoutmaster of Troop 10 and Mrs. Tillerson was Girl Scout Leader, Troop 22, Wichita Falls. They have been active members
in the Presbyterian Church.” [Vernon Daily Record, 8/3/58]
Stillwater, Oklahoma, 1961 - 1968
52

1961: Rex Tillerson’s Family Planned To Move To Stillwater, Oklahoma, Following The Completeion Of The School
Year After Tillerson’s Father Transferred To A Position With The Oklahoma Boy Scouts In Ponca City, Oklahoma.
According to the Vernon Daily Record, “Bobby Joe Tillerson of Vernon, Boy Scout Executive of the Central and Western
Districts of the Northwest Texas Area Council, will transfer to a similar position on the Will Rogers Council Staff, Ponca City,
Okla. The promotion and transfer was announced by Cleo Nipper president of the Northwest Texas Council. Mr. Tillerson
will assume his new position May 1. Mrs. Tillerson and their three children will join him after completion of the present
school term. The Tillersons, who now reside at 2229 Herbert, will make their home in Stillwater. Mr. Tillerson will be
Executive for District 3 in the Will Rogers Council.” [Vernon Daily Record, 3/31/61]
Rex Tillerson Attended Westwood Elementary In Stillwater, Oklahoma. According to The Stillwater News Press,
“Since Trump made the announcement Tuesday, and Willingham and some of his old classmates have been sharing memories
that range from a first date and roller blading. ‘That is pretty amazing,’ Willingham said. ‘It is weird to see him on TV sharing a
glass of champaign with Vladimir Putin and thinking I used to talk to him in the hallway at school.’ Darren Nelson, principal
of Westwood Elementary in Stillwater, learned earlier this week that Tillerson attended the elementary school. The Tillerson
residence was across from Westwood. ‘I think it is really neat that he attended Westwood,’ Nelson said. ‘I would love him to
come visit our school some time. We will definitely be inviting him.’ For the generation not consumed by social media or
texting, keeping in touch with old classmates is difficult. That can get magnified if someone moves away prior to graduation, as
Tillerson did. Houston had lost touch with Tillerson over the years, but he recognized the name on the cover of Fortune
Magazine in 2006.” [Stillwater News Press, 12/15/16]
Rex Tillerson Attended C.E. Donart High In Stillwater, Oklahoma. According to The Stillwater News Press,
“ExxonMobil CEO Rex Tillerson was tabbed this week as Secretary of State of the United State’s of America. The ripples of
such an unorthodox transition stretch worldwide. At the very least, it has Steven Willingham’s phone and Facebook page
buzzing. Willingham graduated from Stillwater High – then C.E. Donart High – in 1970. He later became a pharmacist. He’s
been sharing memories with his old classmates since Tillerson was tabbed as President-elect Donald Trump’s choice for the
post this week. Tillerson moved around in his younger years, but one of his stops included Stillwater, where he was known to
his classmates as a ‘friendly guy.’ Born in Wichita Falls, Texas, Tillerson attended C.E. Donart in 1968-69. He graduated high
school in Huntsville, Texas, before attending University of Texas. He started working for The Exxon Company in 1975 as a
production engineer.” [Stillwater News Press, 12/15/16]
Huntsville, Texas, 1968 - 1970
Rex Tillerson Moved To Huntsville During The 1968-1969 School Year With His Family Because Of His Father’s
Work With The Boy Scouts Of America And Graduated From Huntsville High School The Following Year.
According to Cleburne Times-Review, “Long before Rex Tillerson became the chief operating officer of one of the country’s
most profitable companies and President-elect Donald Trump’s nomination to be the next secretary of state, he was a student
‘mature beyond his years,’ walking the halls at Huntsville High School. Former Hornets band director Richard Wuensche took
a stroll down memory lane Thursday as he flipped through old Huntsville High School yearbooks, pointing out pictures of
Tillerson, who earned spots in the all-district and all-region bands during his senior year in 1970. ‘My memory is a little foggy
because this was a long time ago, but it seems like Rex came to Huntsville after school started his junior year and then
graduated the next,’ Wuensche said. ‘He was a section leader in the percussion section. He never looked like a high school
student. He was very mature looking and acting person. He was just an All-American kid, squeaky clean.’ Tillerson, who was
born in Wichita Falls in 1952, moved to Huntsville with his family during the 1968-69 school year because of his father’s work
with the Boy Scouts of America. Wuensche said Tillerson played the timpani during concert season and switched to the snare
drum during marching season.” [Cleburne Times-Review, 12/23/16]
EDUCATION
High School
Rex Tillerson Attended Stillwater High, Later Graduating High School In Huntsville, Texas. According to The
Stillwater News Press, “ExxonMobil CEO Rex Tillerson was tabbed this week as Secretary of State of the United State’s of
America. The ripples of such an unorthodox transition stretch worldwide. At the very least, it has Steven Willingham’s phone
53

and Facebook page buzzing. Willingham graduated from Stillwater High – then C.E. Donart High – in 1970. He later became
a pharmacist. He’s been sharing memories with his old classmates since Tillerson was tabbed as President-elect Donald
Trump’s choice for the post this week. Tillerson moved around in his younger years, but one of his stops included Stillwater,
where he was known to his classmates as a ‘friendly guy.’ Born in Wichita Falls, Texas, Tillerson attended C.E. Donart in
1968-69. He graduated high school in Huntsville, Texas, before attending University of Texas. He started working for The
Exxon Company in 1975 as a production engineer.” [Stillwater News Press, 12/15/16]
Rex Tillerson Moved To Huntsville During The 1968-1969 School Year With His Family Because Of His Father’s
Work With The Boy Scots Of America And Graduated From Huntsville High School The Following Year.
According to Cleburne Times-Review, “Long before Rex Tillerson became the chief operating officer of one of the country’s
most profitable companies and President-elect Donald Trump’s nomination to be the next secretary of state, he was a student
‘mature beyond his years,’ walking the halls at Huntsville High School. Former Hornets band director Richard Wuensche took
a stroll down memory lane Thursday as he flipped through old Huntsville High School yearbooks, pointing out pictures of
Tillerson, who earned spots in the all-district and all-region bands during his senior year in 1970. ‘My memory is a little foggy
because this was a long time ago, but it seems like Rex came to Huntsville after school started his junior year and then
graduated the next,’ Wuensche said. ‘He was a section leader in the percussion section. He never looked like a high school
student. He was very mature looking and acting person. He was just an All-American kid, squeaky clean.’ Tillerson, who was
born in Wichita Falls in 1952, moved to Huntsville with his family during the 1968-69 school year because of his father’s work
with the Boy Scouts of America. Wuensche said Tillerson played the timpani during concert season and switched to the snare
drum during marching season.” [Cleburne Times-Review, 12/23/16]
University of Texas at Austin (1971- 1975)
Rex Tillerson Joined Exxon After Earning A Degree In Civil Engineering At The University Of Texas At Austin.
According to Dallas Morning News, “A Wichita Falls native, Mr. Tillerson joined Exxon in 1975 as a production engineer
after earning a degree in civil engineering at the University of Texas at Austin. He now oversees oil exploration and production
activities that accounted for more than two-thirds of the company's $21.5 billion in profit last year. The company's overall
2003 revenue was $246.7 billion.” [Dallas Morning News, 2/27/04]
Rex Tillerson Was A Member Of Kappa Kappa Psi. According to Private Empire: ExxonMobil and American Power, “The
focus of Rex Tillerson’s young life was scouting, and he diligently pursued the public service and other tasks required to earn
his Eagle Scout rank. In 1970, he left Huntsville to enroll at the University of Texas at Austin. He was by his own account a
‘slightly above average’ civil engineering student. He evaded the city’s blossoming music counterculture and served instead as a
bass drummer in the Longhorn marching band. He joined Kappa Kappa Psi, which was less a fraternity than a service
organization within the university band. It nonetheless had an initiation ritual in which new recruits would be ‘taken on a ride.’
The euphemism described a rule-constrained kidnapping regimen. During a prescribed window of time, fraternity pledges
could be seized unexpectedly, often in the middle of the night, bundled into a car or truck, driven into the countryside, often
stripped of all clothing, and abandoned. A mercy rule required the kidnappers to provide each victim with at least a dime to
make a phone call. Another rule required that victims be kidnapped in pairs, so no one would be abandoned alone.” [Private
Empire: ExxonMobil and American Power, pg. 333-334, 2012]
Tillerson’s Fraternity Had An Initiation Ritual During Which Recruits Would Be “Seized Unexpectedly, Often In
The Middle Of The Night, Bundled Into A Car Or Truck, Driven Into The Countryside, Often Stripped Of All
Clothing, And Abandoned.” According to Private Empire: ExxonMobil and American Power, “The focus of Rex Tillerson’s
young life was scouting, and he diligently pursued the public service and other tasks required to earn his Eagle Scout rank. In
1970, he left Huntsville to enroll at the University of Texas at Austin. He was by his own account a ‘slightly above average’
civil engineering student. He evaded the city’s blossoming music counterculture and served instead as a bass drummer in the
Longhorn marching band. He joined Kappa Kappa Psi, which was less a fraternity than a service organization within the
university band. It nonetheless had an initiation ritual in which new recruits would be ‘taken on a ride.’ The euphemism
described a rule-constrained kidnapping regimen. During a prescribed window of time, fraternity pledges could be seized
unexpectedly, often in the middle of the night, bundled into a car or truck, driven into the countryside, often stripped of all
clothing, and abandoned. A mercy rule required the kidnappers to provide each victim with at least a dime to make a phone
call. Another rule required that victims be kidnapped in pairs, so no one would be abandoned alone.” [Private Empire:
ExxonMobil and American Power, pg. 333-334, 2012]
54

Family
MOTHER – PATTY SUE (PATTON) TILLERSON
Patty Sue Tillerson Née Patton Was A Devout But Independent-Minded Christian Who Volunteered As A Social
Worker On Ambulance Runs. According to Private Empire: ExxonMobil and American Power, “It would not have been an easy
cult to construct in any event. Tillerson had grown up mainly in small towns in Texas and Oklahoma, the son of a midlevel,
modestly compensated professional organizer at the Boy Scouts of America. His mother was a devout but independentminded
Christian who volunteered as a social worker on ambulance runs.” [Private Empire: ExxonMobil and American
Power, pg. 332, 2012]
Patty Sue Tillerson Née Patton Grew Up in Wichita Falls, Texas. According to Private Empire: ExxonMobil and American
Power, “Tillerson's parents both grew up in Wichita Falls (motto: "The City That Faith Built"), a North Texas plains town that
continually reckoned with tornadoes and had a population of just more than one hundred thousand in 1952, when Rex was
born . On the day of his birth, the Wich­ita Daily Times happened to publish its annual oil edition, which con­ tained about two
dozen stories with headlines such as ‘U.S. Oil Production Reaches New Record.’” [Private Empire: ExxonMobil and American
Power, pg. 333, 2012]
Rex Tillerson’s Parents Met At Boy Scout Camp As Teenagers While His Father, Bob, Worked At The Camp And
His Mother, Patty, Was Visiting Her Brother. According to the Dallas Morning News, “Tillerson’s connection to
Scouting extends back before he was even born 62 years ago. His parents met at Boy Scout camp as teenagers. His father,
Bob, worked at the camp and met his mother, Patty, while she was visiting her brother; sparks flew over a sing-along. After
serving on a battleship during World War II, Bob returned to North Texas and eventually took a full-time job with the Scouts,
a career that would span four decades. As the family moved between Boy Scout offices in Wichita Falls, Stillwater, Okla., and
Huntsville, Scouting was ever-present for Tillerson. As a child and into adolescence, he racked up not just merit badges but
some of Scouting’s highest awards, designated for leadership abilities and dedication. To this day, Tillerson lists his rank of
Eagle Scout on his résumé. And he maintains a reputation in the business world for honesty and straightforwardness, traits
some interpret as proof that despite his success and wealth, he remains a Boy Scout to his core.” [Dallas Morning News,
9/6/14]
FATHER – BOBBY JOE TILLERSON
Bobby Joe Tillerson Worked As A Bakery Salesman And Latter Became Assistant District Executive For The Boy
Scouts Of America's Wichita Falls Council. According to Private Empire: ExxonMobil and American Power, “The Tillersons
lived in a modest one-story house in a working-class neighborhood called Faith Village that had been erected for returning
veterans. When Rex was six, his father, Bobby Joe, who had been a bakery salesman, took a job that would change the family's
destiny: He became assistant district executive for the Boy Scouts of America's Wichita Falls Council. The family moved
several times during Rex's childhood before Bobby Joe took a job in the Sam Houston Council, one of the country's largest,
and settled in Huntsville, Texas.” [Private Empire: ExxonMobil and American Power, pg. 333, 2012]
Bob Tillerson Was A Midlevel, Modestly Compensated Professional Organizer At The Boy Scouts Of
America. According to Private Empire: ExxonMobil and American Power, “It would not have been an easy cult to
construct in any event. Tillerson had grown up mainly in small towns in Texas and Oklahoma, the son of a midlevel,
modestly compensated professional organizer at the Boy Scouts of America. His mother was a devout but
independent-minded Christian who volunteered as a social worker on ambulance runs.” [Private Empire: ExxonMobil
and American Power, pg. 332, 2012]
Bob Tillerson Grew Up in Wichita Falls, Texas. According to Private Empire: ExxonMobil and American Power, “Tillerson's
parents both grew up in Wichita Falls (motto: "The City That Faith Built"), a North Texas plains town that continually
reckoned with tornadoes and had a population of just more than one hundred thousand in 1952, when Rex was born . On the
day of his birth, the Wich­ita Daily Times happened to publish its annual oil edition, which con­ tained about two dozen stories
55

with headlines such as ‘U.S. Oil Production Reaches New Record.’” [Private Empire: ExxonMobil and American Power, pg.
333, 2012]
Bob Tillerson Served On A Battleship During World War II And Following The War Returned To North Texas And
Eventually Took A Full-Time Job With The Scouts, A Career That Would Span Four Decades. According to the
Dallas Morning News, “Tillerson’s connection to Scouting extends back before he was even born 62 years ago. His parents
met at Boy Scout camp as teenagers. His father, Bob, worked at the camp and met his mother, Patty, while she was visiting her
brother; sparks flew over a sing-along. After serving on a battleship during World War II, Bob returned to North Texas and
eventually took a full-time job with the Scouts, a career that would span four decades. As the family moved between Boy
Scout offices in Wichita Falls, Stillwater, Okla., and Huntsville, Scouting was ever-present for Tillerson. As a child and into
adolescence, he racked up not just merit badges but some of Scouting’s highest awards, designated for leadership abilities and
dedication. To this day, Tillerson lists his rank of Eagle Scout on his résumé. And he maintains a reputation in the business
world for honesty and straightforwardness, traits some interpret as proof that despite his success and wealth, he remains a Boy
Scout to his core.” [Dallas Morning News, 9/6/14]
Rex Tillerson’s Parents Met At Boy Scout Camp As Teenagers While His Father, Bob, Worked At The Camp And
His Mother, Patty, Was Visiting Her Brother. According to the Dallas Morning News, “Tillerson’s connection to
Scouting extends back before he was even born 62 years ago. His parents met at Boy Scout camp as teenagers. His father,
Bob, worked at the camp and met his mother, Patty, while she was visiting her brother; sparks flew over a sing-along. After
serving on a battleship during World War II, Bob returned to North Texas and eventually took a full-time job with the Scouts,
a career that would span four decades. As the family moved between Boy Scout offices in Wichita Falls, Stillwater, Okla., and
Huntsville, Scouting was ever-present for Tillerson. As a child and into adolescence, he racked up not just merit badges but
some of Scouting’s highest awards, designated for leadership abilities and dedication. To this day, Tillerson lists his rank of
Eagle Scout on his résumé. And he maintains a reputation in the business world for honesty and straightforwardness, traits
some interpret as proof that despite his success and wealth, he remains a Boy Scout to his core.” [Dallas Morning News,
9/6/14]
SISTERS
Rae Ann Hamilton
Rex Tillerson’s Sister, Rae Ann Hamilton, Was A Physician In Abilene, Texas, And Wife Of Of Judge Lee
Hamilton. According to Abilene Reporter News, “For Abilene physician Rae Ann Hamilton, the news that her brother,
ExxonMobil CEO Rex Tillerson, is President-elect Donald Trump’s pick for secretary of state is a source of immense pride.
Hamilton said she was proud of her brother, named 25th in 2015 on Forbes’ list of the World’s Most Powerful People.
Hamilton said she knew her brother was ‘very humbled’ by the nomination. ‘We were all very excited that he was going to
retire and (we) might get to see him a little more,’ said Hamilton, wife of Judge Lee Hamilton. ‘But he’s a very patriotic person,
so when this call came, he was willing to step in and do it. And, of course, we think he’s going to be incredible at his job.’
Tillerson’s life has been ‘enormously interesting,’ his sister said. ‘He started with Exxon as a little baby engineer and rose up
through the ranks,’ she said. ‘He’s just always taken whatever he was given and learned something from it, and he’s learned a
lot through the years.’” [Abilene Reporter News, 12/13/16]
FIRST WIFE – JAMIE LEE HENRY
1974: Rex Tillerson Married Jamie Lee Henry At First Presbyterian Church In Huntsville, Texas. According to The
Hearne Democrat, “A recent wedding of interest to localities was the exchange of vows between Miss Jamie Lee Henry and
Rex Wayne Tillerson who were united in matrimony in a candlelight ceremony at First Presbyterian Church in Huntsville. The
bride is the daughter of Mr. and Mrs. Claude P. Henry Jr. of Huntsville and granddaughter of Mr. and Mrs. C. P. Henry and
Mrs. Kate Matthews of Hearne. The groom’s parents are Mr. and Mrs. Bob J. Tillerson of Houston and Mrs. V.M. Tillerson
of Wichita Falls is the groom’s grandmother.” [Hearne Democrat, 10/3/74]
Rex Tillerson Was A Senior At The University Of Texas When He Married Jamie Lee Henry. The Hearne
Democrat, “Following a wedding trip to Florida, the newlyweds returned to Austin where they are now making their
56

home. The bride is employed as a senior secretary by the Bureau of Economic Geology of the University of Texas.
Her husband is a senior at the University of Texas and is majoring in civil engineering.” [Hearne Democrat, 10/3/74]
Rex Tillerson Married His First Wife, Jamie Lee Henry Two Years After Graduating College, Had Twin Boys, And
Divorced. According to Private Empire: ExxonMobil and American Power, “About two years out of college, Tillerson married a
Huntsville High band mate, Jamie Lee Henry; they soon had twin boys. As Tillerson’s career took off, however, his marriage
fell apart.” [Private Empire: ExxonMobil and American Power, pg. 334, 2012]
SECOND WIFE –RENDA HOUSE
Renda Tillerson Née House Barrel Raced Competitively At Rodeos Well Into Her Middle Age And The Tillersons
Became Leaders And Intimate Members Of The Texas Barrel-Racing Community. According to Private Empire:
ExxonMobil and American Power, “By 1983, Jamie Lee had returned to Huntsville with the twins, and Rex had married a
divorced mother of one, Renda House. In 1988, Rex and Renda had their own child, another son. They shared a passion for
horses and settled eventually in Argyle, Texas, away from the Dallas social scene and closer to Fort Worth. Renda was an
effusive cowgirl, a barrel racer at rodeos. She continued to race competitively well into middle age. The Tillersons became
leaders and intimate members of the Texas barrel-racing community. They also became active in Fort Worth's world of cutting
horses and attended auctions to bid tens of thousands of dollars for seasoned competitors.” [Private Empire: ExxonMobil and
American Power, pg. 334, 2012]
Renda Tillerson Née House Served On The Board Of The National Cowgirl Museum. According to Private Empire:
ExxonMobil and American Power, “Renda was an effusive cowgirl, a barrel racer at rodeos. She continued to race competitively
well into middle age. The Tillersons became leaders and intimate members of the Texas barrel-racing community. They also
became active in Fort Worth's world of cutting horses and attended auctions to bid tens of thousands of dollars for seasoned
competitors. They bought a ranch in Kamay, about a dozen miles south of Wichita Falls. They called it Bar RR Ranches (for
Rex and Renda).As Tillerson rose into Ex­xonMobil's Management Committee and enjoyed more and more of the wealth and
privilege that came with success at the corporation, they also purchased a $2.5 million lake house in the Hill Country, outside
of Austin. Texas was his world; nothing but the demands of business travel could persuade him to leave. Renda served on the
board of the National Cowgirl Museum, and the couple gave generously to Republican office seekers in the state, often to
middle-of-the-road conservatives such as Kay Bailey Hutchison, as well as to Rex's alma mater in Austin.” [Private Empire:
ExxonMobil and American Power, pg. 334-335, 2012]
In 1983, Tillerson Married A Divorced Mother Of One, Renda House, And The Two Had A Son Together. According
to Private Empire: ExxonMobil and American Power, “By 1983, Jamie Lee had returned to Huntsville with the twins, and Rex had
married a divorced mother of one, Renda House. In 1988, Rex and Renda had their own child, another son. They shared a
passion for horses and settled eventually in Argyle, Texas, away from the Dallas social scene and closer to Fort Worth.”
[Private Empire: ExxonMobil and American Power, pg. 334, 2012]
Tillersons Owned A Ranch In Kamay, TX Called Bar RR Ranches And A Second $2.5 Million Lake House Near
Austin. According to Private Empire: ExxonMobil and American Power, “The Tillersons became leaders and intimate members of
the Texas barrel-racing community. They also became active in Fort Worth’s world of cutting horses and attended auctions to
bid tens of thousands of dollars for seasoned competitors. They bought a ranch in Kamay, about a dozen miles south of
Wichita Falls. They called it Bar RR Ranches (for Rex and Renda). As Tillerson rose into ExxonMobil’s Management
Committee and enjoyed more and more of the wealth and privilege that came with success at the corporation, they also
purchased a $2.5 million lake house in the Hill Country, outside of Austin. Texas was his world; nothing but the demands of
business travel could persuade him to leave. Renda served on the board of the National Cowgirl Museum, and the couple gave
generously to Republican office seekers in the state, often to middle-of-the-road conservatives such as Kay Bailey Hutchison,
as well as to Rex’s alma mater in Austin.” [Private Empire: ExxonMobil and American Power, pg. 334-335, 2012]
CHILDREN
Robert Wayne Tillerson (By Jamie Lee Henry)
57

1977: Robert Wayne Tillerson And Michael James Tillerson Were Born As Twins To Rex Tillerson And His First
Wife Jamie Lee Henry. According to The Hearne Democrat, “Twin sons were born to Mr. and Mrs. Rex Tillerson of Tyler
on Saturday, October 22 in a hospital there. The infants were named Robert Wayne and Michael James. Mrs. Tillerson is the
former Miss Jamie Henry of Huntsville. The newborn twins are the grandsons of Mr. and Mrs. C. P. Henry Jr. of Huntsville
and the great grandsons of Mr. and Mrs. C. P. Henry and Mrs. Kate Mathews of Hearne.” [Hearne Democrat, 10/27/77]
Michael James Tillerson (By Jamie Lee Henry)
1977: Michael James Tillerson And Robert Wayne Tillerson Were Born As Twins To Rex Tillerson And His First
Wife Jamie Lee Henry. According to The Hearne Democrat, “Twin sons were born to Mr. and Mrs. Rex Tillerson of Tyler
on Saturday, October 22 in a hospital there. The infants were named Robert Wayne and Michael James. Mrs. Tillerson is the
former Miss Jamie Henry of Huntsville. The newborn twins are the grandsons of Mr. and Mrs. C. P. Henry Jr. of Huntsville
and the great grandsons of Mr. and Mrs. C. P. Henry and Mrs. Kate Mathews of Hearne.” [Hearne Democrat, 10/27/77]
In 1983, Tillerson Married A Divorced Mother Of One, Renda House, And The Two Had A Son Together. According
to Private Empire: ExxonMobil and American Power, “By 1983, Jamie Lee had returned to Huntsville with the twins, and Rex had
married a divorced mother of one, Renda House. In 1988, Rex and Renda had their own child, another son. They shared a
passion for horses and settled eventually in Argyle, Texas, away from the Dallas social scene and closer to Fort Worth.”
[Private Empire: ExxonMobil and American Power, pg. 334, 2012]
Tyler Tillerson (By Renda House)
Tyler Tillerson Graduated From Argyle High School In 2006. According to Denton Record-Chronicle, “To hear their
neighbors tell, Rex and Renda Tillerson are nice, normal people. The family bought its Bartonville land and home before Rex
Tillerson became chairman and chief executive officer of ExxonMobil in 2006. Now President-elect Donald Trump has
nominated him to serve as the next U.S. secretary of state. And his neighbors along Dove Creek Road are buzzing about how
life might change in their rustic corner of Denton County. ‘It’s quiet living out here,’ said Pattie Carter, who lives nearby on
Dove Creek Road. ‘Now it could be like Mr. Smith Goes to Washington.’ Tillerson, who is 64, and his family are connected to
Denton County in many ways. They’ve attended services at St. Andrew Presbyterian Church in Denton. Tyler Tillerson, their
youngest child, graduated from Argyle High School in 2006. Rex Tillerson makes time for town business, including attending
Bartonville town council meetings when the local issue matters to him and his family.” [Denton Record-Chronicle, 12/13/16]
Religion
Rex Tillerson’s Parents Were Members Of The Presbyterian Church. According to The Vernon Daily Record “These
Are New Neighbors. Bob Tillerson and his wife, Patty, moved to Vernon from Wichita Falls. They live at 2229 Herbert
Street with three children, Jo Lynn, 10, Rex, 6, and Rae, 4. Mr. Tillerson is District Scout Executive. He was Scoutmaster of
Troop 10 and Mrs. Tillerson was Girl Scout Leader, Troop 22, Wichita Falls. They have been active members in the
Presbyterian Church.” [Vernon Daily Record, 8/3/58]
Rex Tillerson Was Christian. According to Private Empire: ExxonMobil and American Power, “To the larger audience of about
750 Houstonians seated at banquet tables, Tillerson read out a philosophical defense of capitalist private enterprise and an
explanation of ExxonMobil's mission in the world. Job losses, bank layoffs, and housing foreclosures had swept the American
heartland since 2008.Tillerson's words reflected his Boy Scout optimism and Christian faith.” [Private Empire: ExxonMobil
and American Power, pg. 59, 2012]
The Tillerson Donated $5,000-$9,999 To The National Association Of Congregational Christian Churches In 2012.
According to The Congregationalist, “In this space, the National Association of Congregational Christian Churches wishes to
thank especially the many individual and family donors who gave $100 or more during Calendar Year 2012. If you note any
errors or omissions, please contact Rebecca Moore at 800-262-1620, ext. 1617. […] $5,000-$9,999 […] Rex and Renda
Tillerson.” [The Congregationalist, Vol. 165 No. 3, September 2013]
58

Ideology
FREE MARKET CAPITALISM
Rex Tillerson: “The Only Principles I Tend To Live By Is Make The United States A More Attractive Place For
Investment.” According to Federal News Service, “BAUCUS: Section 199's probably not a bad example, because some use it
and some don't. TILLERSON: Some -- some do; some don't. And then when the government wants to -- because we're really
just creating conditions for greater investment in the country, because we've got to grow our way out of this deficit problem.
We've got to make it more attractive for people to invest, create revenues, broaden that base. And that's where a lowering of
general rates would -- would be productive. BAUCUS: OK, you go along with then, though, with scaling back a lot of the tax
expenditures. TILLERSON: Across all businesses, not just ours, across all businesses. BAUCUS: I'm getting that, all of them.
TILLERSON: And -- and in the foreign tax code, it needs an overhaul as well. And the only principles I tend to live by is
make the United States a more attractive place for investment. Do not harm American competitiveness overseas, because that
brings enormous benefits and wealth back to this country. And keep the playing field level within industries, so that everyone
competes. We -- we love to compete. I mean, that's -- that is what we thrive on is the competition.” [Sen. Max Baucus Holds
A Hearing On Tax Incentives And Rising Energy Prices, 5/12/11]
Rex Tillerson: “My Philosophy Is To Make Money. And So If I Can Drill, And Make Money, Then That`S What I
Want To Do.” According to the Charlie Rose Show, “CHARLIE ROSE: In terms of drilling, whether it`s Alaska or offshore
or wherever it might be, is your phi-losophy "drill, baby, drill"? REX TILLERSON: No, my philosophy is to make money.
And so if I can drill, and make money, then that`s what I want to do. But it really is for us it`s about making quality
investments for our shareholders. And it`s not a quality investment if you cannot manage the risk around it. And so part of
that decision to undertake whether it`s a drilling program or an investment program in some other country, we have to have a
very good understanding of what risk are we dealing with, how are we going to manage those. Because you may have a
fabulous opportunity but if you manage the risk.” [Charlie Rose Show, 3/7/13]
Tillerson Has Listed His Favorite Book As Atlas Shrugged. According to the New Yorker, “Tillerson once listed his
favorite book as ‘Atlas Shrugged,’ Ayn Rand’s 1957 novel that has become a touchstone for libertarians and promoters of
unbridled capitalism.” [New Yorker, 12/11/16]
Hobbies
HORSE BREEDING AND RANCHING
The Tillersons Breed And Train Cutting Horses On Their Bartonville, Texas, Property, Known As Bar RR Ranches,
Bar RR Also Breeds And Sells Black Angus Cattle, Although The Herd Is On A Ranch In Electra, Close To Rex
Tillerson’s Hometown Of Wichita Falls. According to Denton Record-Chronicle, “The neighborhood is more pasture and
paddock than rows of houses. Neighbors often meet while chasing after loose livestock or fixing a fence. Most Bartonville
homes are large and surrounded by acreage. The average home value is $500,000. The Tillersons breed and train cutting horses
on their property, known as Bar RR Ranches. Cowboys value cutting horses for their keen ability to separate a cow that needs
tending from the herd. Bred more for sport than utility these days, cutting horses are trained to work in teams. Bar RR also
breeds and sells Black Angus cattle, although the herd is on a ranch in Electra, close to Rex Tillerson’s hometown of Wichita
Falls. The couple owns other property in North Texas, including houses in Lantana, Wautaga and a two-story house
overlooking River Crest Country Club in Fort Worth, which is Renda (St. Clair) Tillerson’s hometown.” [Denton Record-
Chronicle, 12/13/16]
Awards
2013: Rex Tillerson Was Awarded The Russian Order Of Friendship By Vladimir Putin. According to RIA Novosti,
“Russian President Vladimir Putin on Friday awarded the managers and employees of a number of the leading energy
59

companies in the world. Awards handed power industry Head of State during his meeting with them in the framework of St.
Petersburg International Economic Forum. In accordance with the decree of the president, for his significant contribution to
strengthening international cooperation in the oil and gas fields of the Order of Friendship awarded by the authorized
manager of Eni, Paolo Scaroni and Chairman of the Board of Directors, General Director of "Exxon Mobil" Rex Tillerson.
Also, a number of employees of energy companies thanked the Russian president.” [RIA Novosti, 6/21/13]
2015: Rex Tillerson Was Named Petroleum Executive Of The Year. According to Natural Gas Week, “Energy
Intelligence announced last week that Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil, has been named
Petroleum Executive of the Year for 2015. He was chosen for the 2015 award by a group of top global oil industry executives,
and he is the 19th winner of this highly regarded, peer-selected honor. The award will be presented to Tillerson on Oct. 6 at an
honorary dinner during the 36th Annual Oil & Money Conference in London. Energy Intelligence jointly convenes the Oil &
Money Conference with the International New York Times.” [Natural Gas Week, 2/2/15]
Rex Tillerson Was Awarded The World Affairs Council’s Mallon Award Recognizing His “International
Relationships – Business And Personal.” According to the Dallas Morning News, “Tillerson is active in civic endeavors
such as promoting high standards in education. ‘Rex W. Tillerson's leadership of Exxon Mobil Corp., the largest publicly
traded petroleum and petro-chemical enterprise in the world, from its headquarters here in North Texas, makes him an
outstanding recipient of the World Affairs Council's Mallon Award,’ council chairman Robert W. Kantner said. ‘The Mallon
Award honors its recipient for dedication to international relationships - business and personal - that enhance the standing of
North Texas around the world. The council is pleased to honor Mr. Tillerson for keeping North Texas in the forefront of
international relationships through his well-respected and tireless work in the energy field and personally as a global citizen.’”
[Dallas Morning News, 8/7/14]
Tillerson’s Corporate & Non-Profit Executive Affiliations
Tillerson Was Affiliated With 20 Entities: 19 Companies Are Still Active. We have identified 20 non-profit and for-profit
companies with which Tillerson has served or continues to serve as an executive officer.
A listing of those affiliations provided below:
Company Affiliation Years of Date of
Current Status
Affiliation Incorporation
Change the Equation Inc. Director 2013 – 2010 Jun-10 Active
American Petroleum Institute Executive
2006 - 2016 3/20/1919 Active
Committee Member
Bar RR Ranches LLC Co-Owner & 2007 - Present 6/27/2007 Active
Boy Scouts of America Director 2005 – Present 2/8/1910 Active
Business Roundtable Executive
2008 – 2016 1972 Active
Committee Member
Center for Strategic and Trustee 2005 – Present May-87 Active
International Studies
Emergency Committee for Member N/A Oct-69 Active
American Trade
Esso Exploration and President 1995 – 1998 N/A N/A
Production Khorat Inc.
Exxon Company
Production 1975 – 1989; Unknown Not Active
Engineer; General
Manager of Central
Production Division
1989 – 1992
Exxon Mobil Corporation Senior Vice 2001 – 2004; 12/18/1972 Active
President; President 2004 - 2006
Exxon Neftegas Limited President 1998 – 1999 4/24/1997 Active
Exxon Ventures (CIS) Inc Vice President 1998 – 1999 9/29/1994 Active
Exxon Yemen Inc. President 1995 - 1998 12/5/1985 Active
60

Company Affiliation Years of Date of
Current Status
Affiliation Incorporation
ExxonMobil Corporation Chairman & CEO 2006 – Present 11/30/1999 Active
ExxonMobil Development Executive Vice 1999 – 2001 6/8/1998 Active
Company
President
Ford’s Theatre Society Vice-Chairman 2007 - Present Aug-67 Active
R2 Real Estate Managing Member 2016 – Present 3/11/2016 Active
Society of Petroleum Member 2007 - Present 10/6/1957 Active
Engineers
The Tillerson Foundation President & 2016 – Present 8/1/2016 Active
Treasurer
United Negro College Fund Director 2008 11/12/1982 Active
[Nexis Statewide Business Search, “Tillerson, Rex,” www.nexis.com; Public Financial Disclosure Report, “Part 1: Filer’s
Positions Held Outside United States Government,” Office of Government of Ethics, Rex Wayne Tillerson, Filed 12/31/16;
Form 990, “Change the Equation,” Citizen Audit, Filed 5/15/14 & 8/2/11; Franchise Tax Details, “Tillerson Foundation,”
Texas Comptroller of Public Accounts, Accessed 1/5/17; Center for Strategic and International Studies, Citizen Audit,
Accessed 1/6/17; About, American Petroleum, Accessed 1/6/17; History, Business Roundtable, Accessed 1/6/17;
History.com, Accessed 1/6/17; Ford’s Theatre Society, Citizen Audit, Accessed 1/6/17; Franchise Tax Details, “R2 Real
Estate,” Texas Comptroller of Public Accounts, Accessed 1/6/17; Franchise Tax Details, “Bar RR Ranches,” Texas
Comptroller of Public Accounts, Accessed 1/6/17; Our History, ExxonMobil, Accessed 1/6/17; ExxonMobil Board of
Directors, Wayback Machine, Accessed 1/6/17; Management, Rex Tillerson, ExxonMobil, Wayback Machine, Accessed
1/6/17; Entity Details, “Exxon Yemen, “ Delaware Division of Corporations, Accessed 1/6/17; Franchise Tax Details,
“Exxon Mobil Corporation,” Texas Comptroller of Public Accounts, Accessed 1/6/17; Entity Details, “Exxon Ventures “
Delaware Division of Corporations, Accessed 1/6/17; Entity Details, “Exxon Neftegas,” Delaware Division of Corporations,
Accessed 1/6/17; Entity Details, “ExxonMobil Development,” Delaware Division of Corporations, Accessed 1/6/17; Quick
Facts, “Emergency Committee for American Trade,” Citizen Audit, Accessed 1/6/17; Members, National Petroleum Council,
Wayback Machine, Accessed 1/6/17; Periodic Report, “United College Negro Fund Inc.” Secretary of State of Texas, Filed
10/9/08; History, Society of Petroleum Engineers, Accessed 1/6/17]
Organizations
Section Overivew:
Tillerson, an Eagle Scout, was President of the Boy Scouts of America from 2010 through 2012, during which time the
scouts maintained a ban on openly LGBTQ members.
Tillerson was vice chairman of the National Petroleum Council. In 2016, the group supported Tillersons nomination to be
Secretary of State.
AMERICAN PETROLEUM INSTITUTE
Vice Chairman Of The National Petroleum Council
Rex Tillerson Was A Member And Vice Chairman Of The National Petroleum Council. According to the Business
Roundtable, “Mr. Tillerson is a member of the Executive Committee and is a former chairman of the American Petroleum
Institute. He is also a trustee of the Center for Strategic and International Studies. He is a member and Vice Chairman of the
National Petroleum Council, a member of the Business Roundtable, a member of the Business Council, an honorary trustee of
the Business Council for International Understanding, and a member of the Emergency Committee for American Trade.”
[Business Roundtable, (accessed, 12/22/16)]
American Petroleum Institute Backed Trump’s Tillerson Nomination
61

2016: API President And CEO Jack Gerard Released A Statement Supporting Rex Tillerson’s Nomination As
Secretary Of State. According to API, “API President and CEO Jack Gerard released the following statement in response to
President-elect Donald J. Trump’s nomination of ExxonMobil Chairman and CEO Rex Tillerson to serve as Secretary of
State. ‘Rex Tillerson is world class. He has decades of experience working with global leaders and overseeing the creation of
thousands of jobs,’ said API President and CEO Jack Gerard. ‘He understands that American voters want to strengthen our
national security, grow jobs, and protect American interests globally. ‘As our nation’s next top diplomat, Rex has the strategic
experience to effectively represent the new administration and the American people. He runs one of the largest companies in
the world that operates in more than 50 countries, oversees over 75,000 employees, and he has first-hand experience working
on international issues. His relationships and in particular those with other nations will help further advance U.S. interests
across the globe. ‘We congratulate Rex on being nominated and look forward to working with him, the incoming
administration, and the new Congress on common sense policies that protect the environment, create jobs, and strengthen our
economy.’” [API, 12/13/16]
BOY SCOUTS OF AMERICA
Eagle Scout
Rex Tillerson Was An Eagle Scout. According to the Dallas Morning News, “Mr. Tillerson's colleagues and friends praise
his congeniality and generosity. As a board member for the Boy Scouts of America's Circle 10 Council in North Texas, the
Eagle Scout helped raise millions of dollars. And despite his schedule as a top Exxon executive, during the giving campaign,
‘he never missed any meetings,’ said Don Burke, director of finance for the Circle 10 Council.” [Dallas Morning News,
12/25/05]
Boy Scouts Of America's Circle 10 Council, Board Member
Rex Tillerson Was A Board Member For The Boy Scouts Of America's Circle 10 Council In North Texas. According
to the Dallas Morning News, “Mr. Tillerson's colleagues and friends praise his congeniality and generosity. As a board member
for the Boy Scouts of America's Circle 10 Council in North Texas, the Eagle Scout helped raise millions of dollars. And
despite his schedule as a top Exxon executive, during the giving campaign, ‘he never missed any meetings,’ said Don Burke,
director of finance for the Circle 10 Council.” [Dallas Morning News, 12/25/05]
Don Burke, Director Of Finance For The Boy Scouts Of America's Circle 10 Council In North Texas Said Despite
His Busy Schedule, Rex Tillerson “Never Missed Any Meetings.” According to the Dallas Morning News, “Mr.
Tillerson's colleagues and friends praise his congeniality and generosity. As a board member for the Boy Scouts of America's
Circle 10 Council in North Texas, the Eagle Scout helped raise millions of dollars. And despite his schedule as a top Exxon
executive, during the giving campaign, ‘he never missed any meetings,’ said Don Burke, director of finance for the Circle 10
Council.” [Dallas Morning News, 12/25/05]
Rex Tillerson Got Dallas Oilman Trevor Rees-Jones To Donate $25 Million To The Circle Ten Council Of The Boy
Scouts. According to The Dallas Morning News, “On the day the Circle Ten Council of the Boy Scouts grew $25 million
richer, Trevor Rees-Jones and Rex Tillerson were riding around in a golf cart at the national Jam-boree, witnessing firsthand
the power of Scouting. That was two months ago when Tillerson, the chief executive of Exxon Mobil, asked fellow Dallas
oilman Rees-Jones to make a $25 million donation to the local chapter. It was a lofty sum, more than anybody has given a
regional Scouting chapter. Although Tillerson had requested the donation, he still was surprised when Rees-Jones agreed to
contribute so much that day at the Jamboree at Fort A.P. Hill, Va. ‘I liked to fall out of the golf cart,’ Tillerson said,
remembering the day. ‘I looked at him and said, ‘Everything?’” [The Dallas Morning News, 10/5/10]
Boy Scouts of America, National President (2010 – 2012)
Rex Tillerson Serves As The 33rd National President Of The Boy Scouts Of America. According to Boy Scouts of
America, “Rex Tillerson serves as the 33rd national president of the Boy Scouts of America. Tillerson is the chairman and
CEO of Exxon Mobil Corporation. Named by Fortune as one of the 25 most powerful people in business, Tillerson oversees
more than 80,000 employees on six continents. He joined Exxon as a production engineer in 1975 and rose quickly through
the ranks before assuming leadership of operations in Russia and parts of the Middle East during the 1990s. Following
62

Exxon’s merger with Mobil Corporation in 1999, Tillerson became an executive vice president. He assumed his current
position of chairman and CEO in 2006.” [Boy Scouts of America, (accessed via archive.org) 2/23/12]
Maintained Ban on Openly LGBT Scouts and Scout leaders
Rex Tillerson Maintained The Boy Scouts Of America’s Ban On Gay Scouts And Scout Leaders During His Tenure
As National President Of The Organization. According to the New York Times, “Mr. Tillerson, a former Eagle Scout, was
national president of the Boy Scouts of America from 2010 to 2011, while the Boy Scouts maintained its ban on gay scouts
and scout leaders, and is a member of the Scouts’ national executive board, which voted this past week to lift the ban on gay
scouts (but not gay scout leaders). Eight years into his tenure as Exxon Mobil’s chief executive, the company’s position hasn’t
budged. No one doubts that if Mr. Tillerson threw his support behind the issue, the company’s policy would change.” [New
York Times, 5/24/13]
CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES
Trustee
Rex Tillerson Was A Trustee Of The Center For Strategic And International Studies. According to CSIS, “Mr.
Tillerson is a member of the Executive Committee and a former chairman of the American Petroleum Institute. He is also a
member of the Society of Petroleum Engineers and a trustee of the Center for Strategic and International Studies. He is a
member of the National Petroleum Council, the Business Roundtable, the Business Council, the Emergency Committee for
American Trade, and an honorary trustee of the Business Council for International Understanding. In 2013, he was elected to
the National Academy of Engineering. Mr. Tillerson is vice chairman of the Ford’s Theatre Society, immediate past national
president of the Boy Scouts of America, and a former director of the United Negro College Fund. He is also a member of the
Chancellor’s Council, Development Board, and Engineering Advisory Board for the University of Texas at Austin, where he
was named a distinguished alumnus in 2007. In 2011, he received an honorary doctorate in engineering from Worcester
Polytechnic Institute, and in 2013, he was awarded the Order of Friendship by Vladimir Putin, president of the Russian
Federation.” [CSIS, (accessed 12/22/16)]
SOCIETY OF PETROLEUM ENGINEERS
2005: Rex Tillerson Was A Member Of The Society of Petroleum Engineers. According to the Dallas Morning News,
“Position: President and director of Exxon Mobil since March 2004; previously a senior vice president since August 2001.
Joined Exxon as a production engineer in 1975. Age: 53 Education: Bachelor's degree in civil engineering, University of
Texas at Austin. Business and civic groups: Board memberships include the U.S.-Russia Business Council, American
Petroleum Institute, Center for Strategic and International Studies, Society of Petroleum Engineers and Boy Scouts of
America.” [Dallas Morning News, 8/5/05]
THE ENGINEERING FOUNDATION ADVISORY COUNCIL FOR THE
UNIVERSITY OF TEXAS AT AUSTIN
2005: Rex Tillerson Was A Member Of The Engineering Foundation Advisory Council For The University Of Texas
At Austin. According to the Dallas Morning News, “Rex Tillerson will become chief executive of Exxon Mobil on Jan. 1.
Age: 53 Hometown: Wichita Falls Education: Bachelor of science in civil engineering, University of Texas at Austin Current
position: President, Exxon Mobil Years of service: 30 Past positions include: President of Exxon Yemen, vice president of
Exxon Ventures, vice president of Exxon Mobil Development Extracurricular board memberships: U.S.-Russia Business
Council, American Petroleum Institute, Boy Scouts of America, Engineering Foundation Advisory Council for the University
of Texas at Austin.” [Dallas Morning News, 12/25/05]
63

Tillerson’s Voting History
REX WAYNE TILLERSON
ELECTORAL PARTICIPATION
Since 2002, Tillerson Has Been Registered To Vote In Denton County. On April 18, 2002, Rex Tillerson changed his
voter registration to become a registered voter in Denton County, Texas. On September 5, 2003, Tillerson changed his voter
registration again in Denton County, yet kept the address with which he had used in his first registration in 2002. [Voter
Registration Application, “Tillerson, Rex Wayne,” Denton County Elections Administration, Obtained 1/6/17]
Since 2002, Tillerson Voted In 18 Elections: Missed 36.7 Percent Of Elections He Was Eligible For. Since 2002,
Tillerson has voted in XX elections, including 4 general elections, 1 constitutional amendment election and 3 primary
elections. Tillerson also missed 31 elections that he was eligible for. [Past Election Results, Denton County, Accessed 1/6/17;
Voting History Records, “Rex Wayne Tillerson,” Denton County Elections Administration, Obtained 1/6/17; Voter
Registration Application, “Tillerson, Rex Wayne,” Denton County Elections Administration, Obtained 1/6/17]
Tillerson’s voting history is detailed in the following table:
Date Election Type Voted
(Y/N)?
Party Ballot Electronic/In-
Person
11/08/2016 General Election Yes No Electronic
06/18/2016 Joint Election Run-Off Election No N/A N/A
05/24/2016 Republican Primary Run-Off Election No N/A N/A
05/07/2016 Cities and School Elections No N/A N/A
03/01/2016 Republican Primary Yes Republican Electronic
11/03/2015 Constitutional Amendment and Joint No N/A N/A
Election
05/09/2015 Joint Election Yes N/A In-Person
11/04/2014 General Election Yes N/A Electronic
05/27/2014 Republican Primary Run-Off Election No N/A N/A
05/10/2014 Cities and Schools Elections Yes N/A Electronic
03/04/2014 Republican Primary Election Yes Republican Electronic
11/05/2013 Constitutional Amendment Election Yes N/A Electronic
06/15/2013 Joint Run-Off Election No N/A N/A
05/11/2013 Cities and Schools Election No N/A N/A
11/06/2012 General Election Yes N/A Electronic
10/20/2012 Special Run-Off Election No N/A N/A
09/15/2012 Special Election No N/A N/A
07/31/2012 Primary Run-Off Election Yes Republican Electronic
06/23/2012 Joint Run-Off Election No N/A N/A
05/29/2012 Primary Election No N/A N/A
05/12/2012 Joint Election Yes N/A In-Person
12/10/2011 Special Election No N/A N/A
11/08/2011 General Election No N/A N/A
06/18/2011 Run-Off Election No N/A N/A
05/14/2011 Uniform Election No N/A N/A
11/02/2010 General Election Yes No Electronic
09/14/2010 Special Election No N/A N/A
06/19/2010 Special Election No N/A N/A
05/08/2010 Uniform Election No N/A N/A
04/13/2010 Run-Off Election No N/A N/A
64

Date Election Type Voted
(Y/N)?
Party Ballot Electronic/In-
Person
03/02/2010 Primary Election Yes Republican In-Person
11/03/2009 General Election No N/A N/A
05/09/2009 Uniform Election No N/A N/A
11/04/2008 General Election Yes N/A Electronic
04/08/2008 Primary Run-Off Election Yes Republican Electronic
03/04/2008 Primary Election Yes Republican Electronic
11/06/2007 General Election No N/A N/A
05/12/2007 Uniform Election No N/A N/A
11/07/2006 General Election Yes N/A N/A
04/06/2006 Run-Off Election No N/A N/A
03/07/2006 Primary Election No N/A N/A
11/08/2005 Constitutional Amendment Election Yes N/A Electronic
11/02/2004 General Election Yes N/A Electronic
05/15/2004 Special Election No N/A N/A
04/13/2004 Run-Off Election No N/A N/A
03/09/2004 Primary Election No N/A N/A
09/13/2003 Special Election No N/A N/A
11/5/2002 General Election No N/A N/A
4/9/2002 Run-Off Election No N/A N/A
[Past Election Results, Denton County, Accessed 1/6/17; Voting History Records, “Rex Wayne Tillerson,” Denton County
Elections Administration, Obtained 1/6/17; Voter Registration Application, “Tillerson, Rex Wayne,” Denton County
Elections Administration, Obtained 1/6/17]
Continuing Research: We have filed a public records request with the Harris County Clerk’s Office, which is where Tillerson
owned property prior to Denton County. Thus our research is based solely upon the information that we have obtained from
the Denton County Voter Registration’s Office. Due to the fact that neither Wichita County, where Tillerson grew up, nor
Harris County have responded to our public records request our research into Tillerson’s voting history begins in 2002. We
will update this section with our findings once we obtain said records.
Overview
WEALTH
As of January 2017, American Bridge has obtained and analyzed Tillerson’s personal financial disclosure to the Office of
Governmental Ethics and ExxonMobil’s annual proxy filings with the Securities and Exchange Commission. Due to the fact
that Tillerson’s personal financial disclosure was made public on January 5 th we have limited our analysis to overviews of how
much wealth he reported. The majority of our analysis is based upon ExxonMobil’s annual proxy filings with the Securities
and Exchange Commission, which we used to find out Tillerson’s annual compensation as an executive for ExxonMobil. Our
research will be ongoing into the stocks and holdings that were disclosed in his personal financial disclosure to the OGE and
when completed this section will be updated.
Notable findings from collected resources include:
- As Of 2016, Tillerson reported that his assets from ExxonMobil worth between $23,167,329 dollars and $71,308,094 dollars.
Tillerson’s assets were primarily composed of property rent, building property, municipal bonds and mutual funds.
65

- As of 2016, Tillerson reported that his total employment assets from were worth between $260,530,009 dollars and
$321,050,010 dollars. Tillerson’s employment assets and income were mainly comprised of his annual salary and bonus,
ExxonMobil stock units, earning bonuses from prior years, and a limited liability company which operates his cattle ranch.
- From 2001 through 2015, Tillerson has earned $316,221,897 dollars in total annual compensation. His total annual
compensation included his: annual salary, annual bonus, stock awards, the yearly change in his pension value, and set
prerequisite payments to cover airfare, security, tax assistance, and club membership.
- From 2001 through 2015, Tillerson earned $38,417,000 in corporate bonuses from ExxonMobil Corporation.
- In 2012, Tillerson’s received his largest bonus, worth $4,587,000 dollars, from ExxonMobil. ExxonMobil Stated in their 2012
proxy report to the SEC that that one of the main performance factors that determined Tillerson’s annual Compensation Was
that ExxonMobil reached an with Rosneft corporation to participate in gas exploration in Russia.
- In 2017, Tillerson retired from ExxonMobil and planned to get rid of all his corporate assets if he was confirmed.
Tillerson’s Wealth Criticism
2008: ExxonMobil Shareholders Submitted A Proposal To The Board That Argued That Tillerson’s Salary Bonus
And Increase Despite The Companies Decline Should Require The Board To Reexamine How The Companies
CEO Is Compensated. According to the 2008 proxy statement by ExxonMobile to the Securities and Exchange
Commission, “This proposal was submitted by NorthStar Asset Management Inc., 43 St. John Street, Jamaica Plain, MA
02130. ‘WHEREAS, in 2007, the total compensation of our CEO Rex Tillerson exceeded $16 million including salary, bonus,
restricted stock, and the value of his stock awards. In addition, SEC filings report that he holds stock options valued at an
additional $16 million and has pension benefits valued at over $24 million; In 1980, CEOs in the US were paid 40 times the
average worker. Today, they are paid 344 times more. Last year, Mr. Tillerson was paid 541 times the average worker. This
type of over-compensation is increasingly being called into question by consumers, politicians and shareholders, and erodes
customer trust and loyalty, potentially negatively affecting shareholder value; In 2007, ExxonMobil share prices increased by
24%, the total market capitalization of the company increased by $19 billion dollars, and Mr. Tillerson’s compensation
increased by 28%. However, as of December 5, 2008, ExxonMobil’s share price has declined 19% and market capitalization
has gone down by $88 billion. Yet, according to a November 25, 2008 ExxonMobil SEC filing, Mr. Tillerson was awarded a $4
million bonus and 225,000 shares of restricted stock. In addition, Mr. Tillerson will receive a 10% raise for 2009. Legislation
passed by the House of Representatives in April 2007, and currently being considered in the Senate, requires shareholders’
approval of executive compensation packages; RESOLVED, shareholders request the Board initiate a review of our
company’s executive compensation policies and make available, upon request, a report of that review by December 1, 2009
(omitting confidential information and prepared at a reasonable cost). We request the report include: A comparison of the
increase in the total compensation package of our CEO between 1998 and 2008 with the increase in the average US per capita
income during that same period.”[Item 8 – Executive Compensation Report, Form DEF 14A, ExxonMobil, Securities and
Exchange Commission, Filed 5/27/09]
In contrast, the average US worker made just over $29,000 last year. While Mr. Tillerson brought home $50,000 a day, the
average US worker’s daily pay was just over $100.
2012: ExxonMobil Shareholder, Kenneth Steiner, Proposed That Tillerson Executive Annual Payments Were Not
Linked To To His Achievement Of Specific Performance Goals. According to ExxonMobil’s 2013 annual proxy report,
“Not proposal was submitted by Mr. Kenneth Steiner, 14 Stoner Avenue, 2M, Great Neck, NY 11021. ‘3 – Special
Shareowner Meetings […] The Corporate Library www.thecorporatelibrary.com, an independent investment research firm,
rated our company ‘D’ with ‘High Governance Risk,’ and ‘Very High Concern’ for executive pay—$22 million for our CEO
Rex Tillerson. The Corporate Library said that with Mr. Tillerson’s $4 million bonus, it is important for our company to
describe the specific achievement levels so that shareholders can evaluate the effectiveness of executives’ annual incentives.
Our compensation discussion and analysis says: ‘The intent of the earnings per share trigger is to tie the timing of the bonus
payment to the rate of the Corporation’s future earnings and not to decrease the amount of the payment.’ In other words, our
66

company’s target was set so low that it was virtually a foregone conclusion. Our company gave restricted stock to our CEO
and other executives. The vesting of such restricted stock was time-based rather than contingent on the achievement of
specified performance goals. Mr. Tillerson’s pension increased by $8.3 million and was more than our CEO’s salary, bonus,
and all other compensation combined. Currently, Mr. Tillerson has three pension plans with a lump sum early retirement
benefit of more than $35 million. The above concerns show there is need for improvement. Please encourage our board to
respond positively to this proposal: Special Shareowner Meetings – Yes on 3.”[Item 3 – Special Shareholder Meetings, Form
DEF 14A, ExxonMobil, Securities and Exchange Commission, Filed 5/29/13]
Tillerson On His Wealth
Rex Tillerson: “My Effective United States Income Tax Rate On My United States Income From 2005 To 2010 Was
32 Percent. Now, If You Look At Any Individual Year, It Could Be As Low As A Single Digit.” According to Federal
News Service, “TILLERSON: My effective United States income tax rate on my United States income from 2005 to 2010
was 32 percent. Now, if you look at any individual year, it could be as low as a single digit. It can be as high as 38 to 39
percent, because we don't settle our taxes in - for that year in that year. We have tax filings that are open for multiple years, as
we resolve issues with the IRS, they are recognized in the year we file. So in some years when our taxes appear low, it's
because we have recognized closing of issues with the IRS where we overpaid.” [Sen. Max Baucus Holds A Hearing On Tax
Incentives And Rising Energy Prices, 5/12/11]
Investments, Assets And Earned Income
ASSETS & INCOME
2016: Tillerson’s Employment Assets & Income Were Worth At Least $260.53 Million Dollars
In 2017, Tillerson Reported That His Employment Assets And Income Were Worth Between $260.53 Million Dollars
And $301.1 Million Dollars in 2016. According to Tillerson’s financial disclosures, his total 2016 assets were worth between
$260,530,009 dollars and $21,050,010 dollars. Tillerson’s employment assets and income were mainly comprised of his annual
salary and bonus, ExxonMobil stock units, earning bonuses from prior years, and a limited liability company which operates
his cattle ranch. [Public Financial Disclosure Report, “Part 2,” Office of Government of Ethics, Rex Wayne Tillerson, Filed
12/31/16]
Tillerson’s employment assets and income are detailed below:
Year Description ETF Value Income Type Income Amount
2016 ExxonMobil Corporation,
Over
restricted stock units
N/A $50,000,000.00 Dividends Over $5,000,000.00
2016 ExxonMobil Corporation,
deferred compensation:
ExxonMobil Defined
Contribution Nonqualified
$1,000,001.00-
Supplemental Savings Plan N/A $5,000,000.00 Interest, Dividends $15,001 - $50,000
2016 ExxonMobil Corporation* N/A N/A Salary/Bonus $10,077,000.00
2016
Impute income on
ExxonMobil Corporation N/A N/A
benefits $250,000.00
2016
$15,001-
Fidelity Value (FDVLX) Yes $50,000 N/A $201 - $1,000.00
2016 Templeton World A Yes $15,001- N/A $201.00 - $1,000.00
67

(TEMWX) $50,000
2016 ExxonMobil Corporation,
Over
Defined Benefit Plan
N/A $50,000,000.00 N/A
2016
$500,001 -
ExxonMobil 2014 EBU N/A $1,000,000 N/A
2016
$1,000,001 -
ExxonMobil 2015 EBU N/A $5,000,000 N/A
2016
$1,000,001 -
ExxonMobil 2016 EBU N/A $5,000,000 N/A
2016 ExxonMobil Corporation,
Restricted Stock
(see part )
N/A
2016 Defined Contribution
ExxonMobil Savings Plan:
ESOP ExxonMobil Stock
2016 Defined Contribution
ExxonMobil Savings Plan:
ExxonMobil Stock
2016 Defined Contribution
ExxonMobil Savings Plan:
Common Assets
2016 Bar RR Ranches, LLC
(Bartonville, TX horse and
cattle ranch)
N/A
N/A
No
None of less than
$201
None of less than
$201
None of less than
$201
None of less than
$201
Over
$50,000,000.00 Dividends Over $5,000,000.00
$1,000,001 -
$5,000,000 Dividends
$15,001.00-
$50,000.00
Over
$50,000,000.00 Dividends Over $5,000,000.00
$1,000,001 -
$5,000,000 N/A $15,001 - $50,000
N/A
$5,000,001 -
$25,000,000 N/A
None of less than
$201
2016 ExxonMobil Corporation,
Over
$1,000,001 -
common stock
N/A $50,000,000.00 Dividends
$5,000,000
$260,530,009.00-
$26,372,405-
2016 Total:
$301,100,005.00
$30,480,008
[Public Financial Disclosure Report, “Part 2,” Office of Government of Ethics, Rex Wayne Tillerson, Filed 12/31/16]
* This value includes salary and bonuses earned during the reporting period, including the settlement of EBUs (Earnings
Bonus Units) from 2013.
** The reported asset values were taken from ExxonMobil's most recent proxy statement. The value includes my holdings in
the ExxonMobil Nonqualified Defined Benefit Additional Payments plan, the ExxonMobil Qualified Defined Benefit Pension
Plan, and the ExxonMobil Nonqualified Defined Benefit Supplemental Pension Plan.
In 2017, Tillerson Retired From ExxonMobil And Planned To Get Rid OF All His Corporate Assets If He Was Confirmed
As Of January 2017, Tillerson Retired From ExxonMobil And It Was Planned That He Would Forfeit Over 2 Million
Corporate Shares If He Is Confirmed As U.S. Secretary Of State. According to the LA Times, “Rex Tillerson will get a
$180-million retirement package from Exxon Mobil Corp. if he is confirmed as President-elect Donald Trump's secretary of
State. The former Exxon chief executive would give up more than 2 million Exxon shares he would have received over the
next 10 years. In exchange, the company would make a cash payment equal to the value of those shares to a trust to be
overseen by a third party.”[LA Times, 1/4/17]
If Tillerson Is Not Confirmed As U.S. Secretary Of State Than He Will Still Be Able To Receive The Over 2 Million
Unvested Shares Worth $180 Million Dollars. According to the Wall Street Journal, “If Mr. Tillerson is confirmed, Exxon
will transfer the equivalent value of two million unvested shares that he was set to receive at his previously expected retirement
in March into a trust, according to the company.” [Wall Street Journal, 1/3/17]
ExxonMobil Stated That Tillerson Planned To Sell His Remaining Corporate Assets And Shares That Are Worth
Over $55 Million Dollars. According to the LA Times, “Exxon said Wednesday that Tillerson has already promised the State
68

Department that if he is confirmed, he will sell 611,000 other shares he currently owns, worth about $55 million at
Wednesday's price. His Senate confirmation hearing begins next week.”[LA Times, 1/4/17]
2001 – 2015: Tillerson Earned Over $316.2 Million Dollars From His Employment With ExxonMobil
Corporation
For The Past Fifteen Years, Tillerson In His Capacity As President And CEO Earned Over $316.2 Million Dollars In
Total Annual Compensation For From ExxonMobil Corporation. According to ExxonMobil’s annual proxy reports to
the Securities and Exchange Commission, from 2001 through 2015, Tillerson has earned $316,221,897 dollars in total annual
compensation. His total annual compensation included his: annual salary, annual bonus, stock awards, the yearly change in his
pension value, and set prerequisite payments to cover airfare, security, tax assistance, and club membership. [Executive
Compensation Tables, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange
Commission, Filed 4/14/04, 4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11, 5/30/12, 5/29/13,
5/28/14, 5/27/15, 4/13/16]
Since 2001, Tillerson’s Annual Compensation Has Increased By Over $25.9 Million Dollars. According to
ExxonMobil’s annual proxy reports to the Securities and Exchange Commission, from 2001 through 2015, Tillerson’s annual
compensation has increased from $1,354,871 dollars in 2001 to $27,297,458 dollars in 2015. [Executive Compensation Tables,
Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange Commission, Filed 4/14/04 &
4/13/16]
Since Tillerson Became Acting CEO In 2006, His Total Annual Compensation Increased By Over $14.28 Million
Dollars. According to ExxonMobil’s annual proxy reports to the Securities and Exchange Commission, Tillerson’s annual
total compensation increased by $14,287,963 dollars from $13,009,495 dollars in 2006 to $27,297,458 dollars in 2015.
[Executive Compensation Tables, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and
Exchange Commission, Filed 5/30/07 & 4/13/16]
Since Tillerson Became Acting CEO In 2006, His Annual Salary Has Increased By Over 100 Percent. According to
ExxonMobil’s annual proxy reports to the Securities and Exchange Commission, Tillerson’s annual salary has increased by 103
percent from 1,500,000 dollars in 2006 to $3,047,000 dollars in 2015. [Executive Compensation Tables, Proxy Statement
Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange Commission, Filed 5/30/07 & 4/13/16]
Tillerson’s annual compensation and bonuses are detailed in the table below:
Fiscal
Year
Annual Salary Bonus Other Annual
Compensation
Annual Salary
Reported By
Board
Total Annual
Compensation
2016 N/A N/A N/A $3,167,000.00 N/A
2015 $3,047,000.00 $2,386,000.00 $540,291.00 $3,047,000.00 $27,297,458.00
2014 $2,867,000.00 $3,670,000.00 $455,420.00 $2,867,000.00 $33,096,312.00
2013 $2,717,000.00 $3,670,000.00 $496,704.00 $2,717,000.00 $28,138,329.00
2012 $2,567,000.00 $4,587,000.00 $447,425.00 $2,567,000.00 $40,266,501.00
2011 $2,387,000.00 $4,368,000.00 $519,230.00 $2,387,000.00 $34,920,506.00
2010 $2,207,000.00 $3,360,000.00 $443,921.00 $2,207,000.00 $28,952,558.00
2009 $2,057,000.00 $2,400,000.00 $280,925.00 $2,057,000.00 $27,168,317.00
2008 $1,870,000.00 $4,000,000.00 $446,826.00 $1,870,000.00 $32,211,079.00
2007 $1,750,000.00 $3,360,000.00 $429,792.00 $1,750,000.00 $16,726,742.00
2006
$1,500,000.00
$1,500,000.00 $2,800,000.00 $482,238.00
$13,009,495.00
2005 $1,166,667.00 $1,250,000.00 $72,269.00 N/A $13,038,061.00
2004 $958,333.00 $1,000,000.00 $102,073.00 N/A $9,280,086.00
2003 $691,667.00 $726,000.00 $7,618.00 N/A $5,701,515.00
2002 $562,500.00 $440,000.00 $15,312.00 N/A $5,060,067.00
69

2001 $441,667.00 $400,000.00 $8,774.00 N/A $1,354,871.00
Total: $26,789,834.00 $38,417,000.00 $4,748,818.00 $316,221,897.00
[Executive Compensation Tables, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and
Exchange Commission, Filed 4/14/04, 4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11, 5/30/12,
5/29/13, 5/28/14, 5/27/15, 4/13/16]
Since 2001, Tillerson Earned Over $38.4 Million Dollars In Corporate Bonuses
2001 – 2015: Tillerson Received Over $38.4 Million Dollars In Corporate Bonuses From ExxonMobil. According to
According to ExxonMobil’s annual proxy reports to the Securities and Exchange Commission, from 2001 through 2015,
Tillerson earned $38,417,000 in corporate bonuses from ExxonMobil corporation. [Executive Compensation Tables, Proxy
Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange Commission, Filed 4/14/04,
4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11, 5/30/12, 5/29/13, 5/28/14, 5/27/15, 4/13/16]
Since 2012, Successful Business Agreements With Russia Have Been One Of The Main Results That Was Used To Determine
Tillerson’s Executive Compensation
Rex Tillerson Earned Bonus Payouts Connected With Exxon Mobil’s Exploration Of Oil In The Russian Arctic.
According to the Guardian, “The boss of Exxon, Rex Tillerson, was paid $33.1m last year including bonus payouts linked to
projects including the first well in the Kara Sea, in the Russian Arctic, and the expansion of the Kearl tar sands operations in
northern Alberta, Canada.” [Guardian, 5/25/15]
2012: Tillerson Received His Largest Bonus Of $4.58 Million Dollars From ExxonMobil. According to ExxonMobil’s
2012 SEC proxy report, Tillerson’s received $4,587,000 dollars in corporate bonuses from ExxonMobil. [Executive
Compensation, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange Commission,
Filed 5/29/13]
2012: ExxonMobil Stated That One Of The Main Performance Factors That Determined Tillerson’s Annual
Compensation Was Their Agreement With Rosneft To Participate In Gas Exploration In Russia. According to
ExxonMobil’s 2012 SEC proxy report, “In addition to financial and operating performance, a key factor underlying the
compensation decisions made by the Compensation Committee in 2012 was the progress achieved on strategic priorities. The
accomplishments outlined below are expected to have a positive impact on ExxonMobil’s performance for decades.
ExxonMobil progressed the Strategic Cooperation Agreement with Rosneft to jointly participate in oil and natural gas
exploration and development activities in Russia, the United States, and Canada, and to share technology and expertise. In
2012, we completed seismic data acquisition in the Black Sea and Kara Sea. We also agreed to jointly develop tight oil reserves
in West Siberia and establish a joint Arctic Research Center for offshore developments”.
2014: Tillerson’s Total Executive Compensation Increased By 17.6 Percent. According to ExxonMobil’s 2014 SEC
proxy report, Tillerson’s received $33,096,312. Dollars in total executive compensation in 2014, which is a 17.6 percent
increase from his executive compensation of $28,138,329 dollars in 2013. [Executive Compensation, Proxy Statement
Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange Commission, Filed 5/27/15]
2014: One Of The Major Factors That Determined Tillerson’s Executive Compensation Was The First ExxonMobil
Joint Venture With Rosneft In The Russian Artic. According to ExxonMobil’s 2014 SEC proxy report, “The significant
achievements regarding the long-term strategic results outlined on pages 26 to 29 were a major factor in the compensation
approved by the Compensation Committee for Mr. Tillerson. […]These results, in addition to individual performance,
experience, and level of responsibility, helped form the basis of compensation decisions made by the Compensation
Committee in 2014. […]Successfully drilled the first ExxonMobil-Rosneft Joint Venture Kara Sea exploration well in the
Russian Arctic.”[Business Results and Basis for Compensation Decisions, Proxy Statement Pursuant to Section 14(a), Exxon
Mobil Corporation, Securities and Exchange Commission, Filed 5/27/15]
70

Since 2001, ExxonMobil Has Paid Tillerson Over $4.78 Million Dollars To Cover His Lifestyle Expenses, Such As Club
Memberships And Use Of Corporate Properties
ExxonMobil Corporation Defined, “Other Annual Compensation,” As Prerequisite Payments To Cover Expenses
Such As Club Membership Fees, Financial And Tax Planning Services And Use Of The Company Jet And Car.
According to ExxonMobil’s 2005 annual proxy report, “Other Annual Compensation ($)(a) […] (a) This column shows the
cost to the Company of club memberships, financial planning services, and tax assistance provided to the named executives, as
well as the incremental cost of each executive's personal use of company aircraft, automobiles, and properties. SEC rules allow
companies not to disclose the first $50,000 of perquisite costs, but ExxonMobil voluntarily discloses the full amount of those
costs.” [Executive Compensation Tables, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and
Exchange Commission, Filed 4/13/05]
2001 – 2015: Tillerson’s Annual Salary Included $4,748,818 Dollars In Prerequisite Payments By ExxonMobil To
Cover His Club Memberships And Other Such Living Expenses. [Executive Compensation Tables, Proxy Statement
Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange Commission, Filed 4/14/04, 4/13/05,
4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11, 5/30/12, 5/29/13, 5/28/14, 5/27/15, 4/13/16]
Since 2003, Tillerson Has Owned Over 15 Million Stock Shares In ExxonMobil
For The Past Twelve Years, Tillerson Has Owned Over 15.38 Million Common Stock Shares In ExxonMobil
Corporation. According to ExxonMobil’s annual proxy reports filed with the Securities and Exchange Commission, from
2003 through 2015, Tillerson has been awarded 15,382,611 common stock shares in ExxonMobil. [Director and Executive
Officer Stock Ownership, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and Exchange
Commission, Filed 4/14/04, 4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11, 5/30/12, 5/29/13,
5/28/14, 5/27/15, 4/13/16]
Tillerson’s stock ownership in ExxonMobil Corporation Is detailed below:
Date Held Shares Owned Shares Owned By A
Dependent Child
Shares Covered by
Exercisable Options
2015 1,809,121 0 0
2014 1,855,784 0 0
2013 1,902,580 0 0
2012 1,949,949 0 0
2011 1,758,905 0 0
2010 1,596,884 1,525 0
2009 1,325,613 1,525 327,307
2008 1,131,520 1,875 327,307
2007 759,004 1,800 407,307
2006 576,570 1,725 464,545
2004 427,951 1,400 513,982
2003 288,730 1,000 602,688
[Director and Executive Officer Stock Ownership, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation,
Securities and Exchange Commission, Filed 4/14/04, 4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11,
5/30/12, 5/29/13, 5/28/14, 5/27/15, 4/13/16]
Over The Course Of Fifteen Years, Tillerson Has Earned Over $193 Million Dollars Due To Stocks Awarded To Him By
ExxonMobil
2003 – 2015: Tillerson Has Been Awarded Over 2.6 Million ExxonMobil Stockes That Are Valued To Be Worth Over
$193.8 Million Dollars. According to ExxonMobil’s annual proxy report to the SEC, from December 31, 2003 through
71

November 24, 2015, ExxonMobil has awarded Tillerson with 2,686,500 shares of ExxonMobil stocks that are fairly valued to
be worth $193,847,195 dollars. [Grants of Plan-Based Awards, Proxy Statement Pursuant to Section 14(a), Exxon Mobil
Corporation, Securities and Exchange Commission, Filed 4/14/04, 4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10,
4/13/11, 5/30/12, 5/29/13, 5/28/14, 5/27/15, 4/13/16]
Tillerson’s annually awarded long term compensation by ExxonMobil is detailed below:
Year Number of Shares of Stock Awarded Fair Value of Stock Awarded
11/24/2015 225,000 $18,288,000.00
11/25/2014 225,000 $21,420,000.00
11/26/2013 225,000 $21,254,625.00
1/28/2012 225,000 $19,627,875.00
01/2011 2,500 $185,525.00
11/30/2011 225,000 $17,890,875.00
11/23/2010 225,000 $15,465,375.00
11/24/2009 225,000 $16,963,875.00
11/25/2008 225,000 $17,604,000.00
11/28/2007 185,000 $16,120,900.00
11/28/2006 185,000 $13,591,025.00
12/31/2005 150,000 $8,715,000.00
12/31/2004 132,000 $6,720,120.00
12/31/2003 232,000 $9,512,000,00
[Grants of Plan-Based Awards, Proxy Statement Pursuant to Section 14(a), Exxon Mobil Corporation, Securities and
Exchange Commission, Filed 4/14/04, 4/13/05, 4/12/06, 5/30/07, 5/28/08, 5/27/09, 5/26/10, 4/13/11, 5/30/12,
5/29/13, 5/28/14, 5/27/15, 4/13/16]
2016: Tillerson Reported That He Held Over $23.16 Million Dollars In Assets That Were Separate From
His Assets From ExxonMobil
In 2016, Tillerson Reported His Assets That Were Separate From His Assets From ExxonMobil Were Worth At
Least $23.16 Million Dollars. According to Tillerman’s financial disclosures, his total 2016 assets were worth between
$23,167,329 dollars and $71,308,094 dollars. Tillerman’s assets were composed of property rent, building property, municipal
bonds and mutual funds. [Personal Financial Disclosure, “Part 6: Other Assets and Income,” Office of Governmental Ethics,
Rex Tillerson, Filed 12/31/16]
In 2016, Tillerson Reported That He Earned An Investment Income Of At Least $759,314. According to Tillerman’s
financial disclosure, in 2016 his investment income from rent, royalties, and capital gains was between $759,314 and
$2,869,610. The largest reported source of reported income was from dividends and interest from HF Renaissance EQ LLC
and was worth of between $100,001 dollars and $1,000,000 dollars. [Personal Financial Disclosure, “Part 6: Other Assets and
Income,” Office of Governmental Ethics, Rex Tillerson, Filed 12/31/16]
Positions Held Outside U.S. Government
For The Past Two Years, Tillerson Disclosed That He Has Held Positions With Nine Organizations. According to
Tillerman’s financial disclosure, he reported that from December 31, 2014 through December 31, 2016, that he has served in
various positions with nine organizations. Tillerman reported that he is only presently involved with six of the nine
organizations and that he has exited all organizations that relate to his prior job with ExxonMobil. [Public Financial Disclosure
Report, “Part 1: Filer’s Positions Held Outside United States Government,” Office of Government of Ethics, Rex Wayne
Tillerson, Filed 12/31/16]
72

Organization
Name
ExxonMobil
Corporation
The Tillerson
Foundation
Bar RR Ranches
R2 Real Estate
Ford’s Theatre
Society
Center for Strategic
and International
Studies
Boy Scouts of
America
Business
Roundtable
American
Petroleum Institute
City, State Organization
Type
Position Held
Irving, TX Corporation Chairman &
CEO
Fort Worth, Private President &
TX Charitable Treasurer
Foundation
Bartonville,
TX
Bartonville, LLC
Managing
TX
Member
Washington,
D.C.
Washington,
D.C.
New York,
NY
Washington,
D.C.
Washington,
D.C.
From To (Mo/Yr)
(Mo/Yr)
01/2006 12/2016
08/2016 Present
LLC Co-Owner 07/2007 Present
03/2016 Present
Non-Profit Vice-Chairman 06/2007 Present
Non-Profit Trustee 06/2005 Present
Non-Profit Director 06/2005 Present
Non-Profit
Trade Group
Executive
Committee
Member
Executive
Committee
05/2008 12/2016
01/2006 12/2016
Member
[Public Financial Disclosure Report, “Part 1: Filer’s Positions Held Outside United States Government,” Office of
Government of Ethics, Rex Wayne Tillerson, Filed 12/31/16]
Personal Real Estate Property
METHODOLOGY
Methodology And Standard Searches Performed For Each Of Tillerson’s Property
Searches use to identify Tillerson’s property:
Nexis comprehensive person report
Personal financial disclosure review
Local tax and assessor searches (as identified below)
Due diligence performed on each subsequently identified property:
Online county-level resources such as recorder’s offices (for property transaction records and liens) as available
Assessor files (for property values, details, and possible tax exemptions) as available
Treasurer databases (for property tax collection issues) as available
Police reports and sheriff records
Construction & zoning permit and applications
The on-going research being conducted of Tillerson’s property via public records requests are detailed in the table below:
Search Type Records Being Searched For Results (Yes/No)
Denton County Property Appraiser (TX) Property Appraisal and Detail Records Submitted
Denton County Tax Collector (TX) Property Appraisal and Detail Records Submitted
73

OVERVIEW
2000 – Present: Tillerson And His Wife’s Names Are Connected To 9 Addresses: Including His Main Residence In
Bartonville, Texas. We have identified 9 properties which Tillerson or his wife has likely owned, lived in or used; including
his residence located in Bartonville, Texas.
The identified properties connected to Tillerson are detailed in the table below:
Street Address City County State Date of Ownership
624 Dove Creek
Road Bartonville Denton TX
2001 – Present; Owned by Tillerson and
his wife.
350 Marshall Way Lantana Denton TX
2012- Present; Owned by Tillerson and his
wife.
N/A
(Property Abstract
Number 736) N/A Denton TX
2009 – Present: Currently owned by Bar
RR Ranches LLC, which Tillerson and his
wife serve as the owners of since 2007.
122 Applehead
Island Drive
Horseshoe
Bay Ilano TX
1515 Hillcrest
Street Fort Worth Tarrant TX
7332 Amber Street Watauga Tarrant TX
2525 DRS Road Richmond Fort Bend TX
New
FM 1374 East Waverly Walker TX
2004 – Present; Owned by Tillerson and
his wife.
2014 – Present; Owned by Tillerson and
his wife.
2002 – Present; Owned by Tillerson and
his wife.
1995 – 2002; Owned by Tillerson and his
wife.
2005 – Present; Owned by Tillerson and
his wife.
1992 – 1995; Owned by Tillerson and his
wife.
146 Jellico Circle Southlake Tarrant TX
[Deed, Instrument #2002083899, Fort Worth County Clerk, Filed 8/6/02; Deed, Instrument #9552629, Fort Worth County
Clerk, Filed 9/1/95; Prior Owners, Tarrant Central Appraiser, Accessed 1/5/17; Comprehensive Person Report, “Tillerson,
Rex,” Nexis, Accessed 1/4/17]
Note & Continuing Research: Our Personal Real Property analysis is based upon properties that Tillerson and his wife have
owned from 2000 to the present. Any properties that they have owned and then sold prior to 2000 will not be included in our
research. We will continue to obtain further materials and information on additional properties listed above that Tillerson may
have owned in the early 1990’s through the mid 2000’s.
624 DOVE CREEK ROAD, BARTONVILLE, TX (2001-PRESENT)
Tillerson And His Wife Have Owned The Property For 15 Years
2001: Tillerson And His Wife Purchased Property Located at 624 Dove Creek Road, Bartonville, Texas For An
Unknown Amount. On October 18, 2001, Rex and Renda Tillerson purchased property located at 624 Dove Creek Road in
Bartonville, Texas from Linda and Gerald Dinsmore for an unknown amount. [General Warranty Deed, Document #2012-
58973, Property Records Search, Denton County, Filed 11/7/01]
2017: Tillerson’s Property Was Slated To Receive A Homestead Cap Tax Reduction Of Over $56,000 Dollars
As Of 2017, The Property Is Set To Receive Over $56,000 Dollars’ Worth Of Tax Reductions From The Counties
Homestead Cap. According to the Denton Central Appraisal District, as of January 3, 2017, the homestead cap for the
property located at 624 Dove Creek Road was $56,519. [Denton Central Appraisal District, Accessed 1/3/17]
74

The Homestead Cap In Denton Counties Was Created To Aid Homeowners From Tax Increases On Their Main
Residence Due To The Substantial Increase In Property Prices. According to the Denton Central Appraisal District,
“Prices of new and used homes in Denton County have increased substantially in recent years. In order to prevent sharp
increases in home property taxes from year to year, Texas voters in 1997 approved a constitutional amendment, which became
effective January 1, 1998, to limit increases in the taxable value of a qualified residence homestead. To qualify, property must
be your residence homestead, and you must have received a homestead exemption in your name in both the current and
previous years. You can reference this section in the Texas Property Tax Code Section 23.23.”[Exemptions, Denton Central
Appraisal District, Accessed 1/3/17]
2017: Tillerson’s Property Was Slated To Receive An Agricultural Use Tax Reduction Of Over $772,000 Dollars
As Of 2017, The Property Is Set To Receive $772,000 Dollars’ Worth Of An Agricultural Use Tax Reductions.
According to the Denton Central Appraisal District, as of January 3, 2017, the Acricultural Use Reduction for the property
located at 624 Dove Creek Road was $772,685. [Denton Central Appraisal District, Accessed 1/3/17]
Texas Law Stated That An Agricultural Use Tax Reduction Is Allowed If The Land Is Used For Agricultural
Productivity. According to the Denton Central Appraisal District, “Taxpayers may qualify for agricultural productivity
valuation under two different laws. The newer law is called "open-space valuation" or "1-d-1 appraisal" (after Article 8, Section
1-d-1 of the Texas Constitution). Both individual and corporate owners are eligible under this provision if the land is used for
a qualified purpose. Nearly all land that receives productivity valuation is under this law. An older law -- known as "1-d" or
"agricultural use" appraisal -- is available only to individual owners who derive the majority of their income from farming or
ranching.
[Denton Central Appraisal District, Accessed 1/3/17]
Tillerson’s Ranch Home Offered 31,072 Square Feet Of Living Space, 18.4 Acres Of Land, Two Pools, And
An Outdoor Kitchen
Tillerson’s 18 Acre Ranch Offered Him And His Family 31,072 Square Feet Of Living Area. According to Denton
county property appraisal records, Tillerson’s two-story ranch offers 31,072 square feet of living area and 6.5 acres of land
which house a horse stable, barn and arena. The property also offers 11.88 acres of improved pasture. The property offers a
pool, a thera pool/spa, an outdoor kitchen, and a 2 car attached garage. [Denton Central Appraisal District, Accessed 1/3/17]
The Dove Creek Road Property Is Surrounded By About 20 Acres Filled With Horse Barns And Stables. According to
Denton Record-Chronicle, “The Tillersons bought their Dove Creek Road property in November 2001, a few months after
ExxonMobil named Tillerson senior vice president. Set up on a hillside, the two-story, brick-and-stone home is surrounded by
about 20 acres filled with horse barns, stables and arenas.” [Denton Record-Chronicle, 12/13/16]
Tillerson’s House Was Worth Over $2.26 Million In 2016
In 2016, The Property’s Value Was $2,261,617 Dollars. According to the Denton Central Appraisal District, Tillerson’s
property had a market property value in 2016 of $2,261,617. Such a value indicates that the property has increased in value by
43.2 percent from $2,290,489 in 2008 to $2,261,617 in 2016. [Denton Central Appraisal District, Accessed 1/3/17]
Tillerson’s property value is detailed in the table below:
Year Assessed Value Appraised Value Market Value
2016 $1,432,413.00 $1,488,932.00 $2,261,617.00
2015 $1,290,123.00 $1,290,123.00 $1,961,591.00
2014 $1,257,925.00 $1,257,925.00 $1,929,452.00
2013 $1,346,645.00 $1,346,645.00 $2,220,449.00
2012 $1,308,734.00 $1,357,427.00 $2,231,231.00
2011 $1,427,121.00 $1,208,736.00 $2,300,925.00
75

Year Assessed Value Appraised Value Market Value
2010 $1,425,759.00 $1,100,000.00 $2,299,563.00
2009 $994,271.00 $994,271.00 $2,272,428.00
2008 $1,012,419.00 $1,012,419.00 $2,290,489.00
[Denton Central Appraisal District, Accessed 1/3/17]
Research Limitations: The Denton Central Appraisal District’s website only publically states the assessed value for the
property going back to 2008.
Tillerson Obtained And Paid Off $1.5 Million Worth Of Mortgage Debt
Tillerson’s Obtained 2 Mortgages Worth $1.96 Million Dollars On His Property Located At 624 Dove Creek Road.
Since owning the property, Tillerson has obtained 2 mortgages from Wells Fargo Bank, totaling $1,960,000 worth of closed
mortgage debt.
Details of the mortgages are provided below:
Mortgage Date Filed (Document Number) Date Released (Document Number) Amount
Provider
Wells Fargo 10/7/2003 (Document Number 2003- 11/21/2011(Document Number 2011- $960,000.00
167515)
111665)
Wells Fargo 11/7/2001 (Document Number 2001- 11/15/2003 (Document Number 2003- $1,000,000.00
119427)
187844)
[Documents obtained from the Denton County Clerk’s office, Accessed 1/4/17]
350 MARSHALL WAY, LANTANA, TX (2012 – Present)
Tillerson And His Wife Have Owned The Property For The Past Four Years
2012: Tillerson And His Wife Purchased Property Located at 350 Marshall Way, Lantana, Texas For An Unknown
Amount. On June 1, 2012, Rex and Renda Tillerson purchased property located at 350 Marshall Way in Lantana, Texas from
Ryan and Storey Carney for an unknown amount. [General Warranty Deed, Document #2012-58973, Denton County, Filed
6/4/12]
Tillerson’s One-Story Ranch Style Home Offered 1,709 Square Feet Of Living Space, A One-Car Attached
Garage, And Access To Five Pools And A Golf Course
Tillerson’s One-Story Ranch Style Home Offers Him And His Family 1,709 Square Feet Of Living Area. According
to Denton county property appraisal records, Tillerson’s one-story ranch offers 1,709 square feet of living area. The house has
3 bedrooms, 2 bathrooms, a covered brick porch, and access to the five pools and golf course within the Magnolia subdivision
where the property is located. [Zillow, Accessed 1/4/17; General Information, “350 Marshall Way,” Denton Central Appraisal
District, Accessed 1/4/17]
Tillerson’s House Was Worth Over $233,000 Dollars In 2016
In 2016, The Property’s Value Was $233,166 Dollars. According to the Denton Central Appraisal District, Tillerson’s
property had a market property value in 2016 of $233,166. Such a value indicates that the property has decreased in value by
1.26 percent from $162,776 in 2012 to $233,166 in 2016. [Denton Central Appraisal District, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
76

Year Assessed Value Appraised Value Market Value
2016 $233,166.00 $233,166.00 $233,166.00
2015 $213,768.00 $213,768.00 $213,768.00
2014 $188,986.00 $188,986.00 $188,986.00
2013 $166,221.00 $166,221.00 $166,221.00
2012 $162,776.00 $162,776.00 $162,776.00
[Denton Central Appraisal District, Accessed 1/4/17]
BAR RR RANCH, BARTONVILLE, TX
Note: A search for foreign or agriculatural work visas at this property returned no results
For The Past Ten Years, Tillerson And His Wife Have Owned A Horse Ranch Named Bar RR Ranch
Tillerson And His Wife Have Been The Sole Registered Owners For The Past Nine Years
2007 – Present: Tillerson And His Wife Serve As The Registered Owners Of Bar RR Ranch LLC. According to the
Texas Comptroller of Public Accounts, as of January 4, 2017, Tillerson and his wife serve as the only registered owners of Bar
RR Ranches LLC. [Franchise Tax Details, “Bar RR Ranch,” Texas Comptroller of Public Accounts, Accessed 1/4/17]
In 2007, Tillerson And His Wife Formed Bar RR Ranch
2007: Tillerson And His Wife Registered Bar RR Ranch LLC With The State Of Texas. According to the Texas
Comptroller of Public Accounts, on June 27, 2007, Tillerson and his wife registered Bar RR Ranch LLC with the state of
Texas. [Franchise Tax Details, “Bar RR Ranch,” Texas Comptroller of Public Accounts, Accessed 1/4/17]
Bar RR Ranch Has Served As A Working Horse Breeding & Training Ranch
Bar RR Ranches Operate As Ranch Who Specializes In Horse Breeding, Training, And Showing. According to Bar
RR Ranches website, “Bar RR Ranches, LLC, located in Bartonville, Texas, specializes in the breeding, training and showing of
Cutting Horses. [Home, Bar RR Ranches, Accessed 1/4/17]
It Was Reported That Bar RR Ranch Has Operated As A Black Angus Cattle Breeder And Seller. According to the
Denton Record-Chronicle, “Bar RR also breeds and sells Black Angus cattle, although the herd is on a ranch in Electra, close
to Rex Tillerson’s hometown of Wichita Falls.”[Denton Record-Chronicle, 12/13/16]
As Of January 2017, Bar RR Ranch Disclosed That The Ranch Has Sold 29 Horses. [Sold Horses, Bar RR Ranches,
Accessed 1/4/17]
As Of January 2017, Bar RR Ranch Reported That The Ranch Currently Has 8 Horses For Sale. [For Sale, Bar RR
Ranches, Accessed 1/4/17]
Tillerson And His Wife Have Owned The Property For The Past Seven Years
2009: Tillerson And His Wife Purchased 99.8 Acres Of Property Located Within Denton County For $6.35 Million
Dollars. On September 28, 2009, Rex and Renda Tillerson purchased 99.8173 acres of property within Denton County from
Stargate Sport Horse LP For $6,350,000 Dollars [Deed History, “Property ID# 236126, Denton Central Appraisal District,
Accessed 1/4/17; ERX-Deed of Trust, Document Number 2010-68676, Denton County Clerk’s Office, Filed 7/14/10
77

Since 2009, Bar RR Ranch Has Been Composed Of Two Homes, Multiple Barns, An Arena, And Over 88
Acres Of Pasture Land
Tillerson’s 99.8 Acre Ranch Offered Him And His Family Over 211,000 Square Feet Of Living Area And Over 88
Acres Of Pasture Land. According to Denton county property appraisal records, Bar RR Ranch offered Tillerson and his
family 211,548 square feet of living area in 2 residential properties and one retail property. In addition, the property offered
88.9929 acres of pasture land that housed at least one horse arena, 6 stables, and 3 barns. [Improvements & Land Segments,
“Property ID 236125,” Denton Central Appraiser, Accessed 1/4/17; Improvements & Land Segments, “Property ID 38038,”
Denton Central Appraiser, Accessed 1/4/17; Improvements & Land Segments, “Property ID 236126,” Denton Central
Appraiser, Accessed 1/4/17]
It Was Reported That The Property Had A 4,000 Square Foot Home For The Ranch Manager. According to Candy’s
Dirt, “A 4,000 square foot home is on the property for a ranch manager.”[Candysdirt.com, Accessed 1/4/17]
[Gallery, Bar RR
Ranches, Accessed
1/4/17]
A Combined Total Of $7.76 Million Dollars
In 2016, Bar RR
Ranches Is Worth
In 2016, The Bar RR Ranches Three Properties Combined Total Market Value Is Over $7.76 Million Dollars.
According to the Denton Central Appraiser District, the 3 parcels that make-up Bar RR Ranch had a combined total market
value in 2016 of $7,759,527.
Tax Year Address
Assessed Value Appraised
Value
Total Market
Value
2016 Property ID 236126 $1,350.00 $1,350.00 $547,560.00
2016 Property ID 236125 $3,975,614.00 $3,975,614.00 $7,027,709.00
2016 Property ID 38038 $454.00 $454.00 $184,258.00
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 236126,”
Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 38038,” Denton Central Appraisal Office, Accessed
1/4/17]
Tillerson’s 12.8 Property Lot (ID 236126) Was Worth $547,560 Dollars In 2016; The Property Valued Has Increased By 70%
Since 2009
Property ID 236126 Is Composed Of 12.8526 Acres. [General Information, “Property ID 236126,” Denton Central
Appraiser, Accessed 1/4/17]
In 2016, This Properties Market Value Was $547,560 Dollars. According to the Denton Central Appraisal District,
Tillerson’s property had an assessed property value in 2016 of $547,560. Such a value indicates that the property has increased
78

in value by 70.4 percent from $321,354 in 2009 to $547,560 in 2016. [2016 Values, “Property ID 236126,” Denton Central
Appraiser, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
Year Assessed Value Appraised Value Market Value
2016 $1,350.00 $1,350.00 $547,560.00
2015 N/A N/A $321,354.00
2014 N/A N/A $321,354.00
2013 N/A N/A $321,354.00
2012 N/A N/A $321,354.00
2011 N/A N/A $321,354.00
2010 N/A N/A $321,354.00
2009 N/A N/A $321,354.00
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17]
Tillerson’s 82.6 Property Lot (ID 236125) Was Worth $7.02 Million Dollars In 2016; The Property Value Increased By 3.2
Percent Since 2009
Property ID 236125 Is Composed Of 82.6397 Acres. [General Information, “Property ID 236125,” Denton Central
Appraiser, Accessed 1/4/17]
In 2016, This Properties Market Value Was Over $7.02 Million Dollars. According to the Denton Central Appraisal
District, Tillerson’s property had an assessed property value in 2016 of $7,027,709. Such a value indicates that the property has
increased in value by 3.2 percent from $6,811,996.in 2009 to $7,027,709 in 2016. [2016 Values, “Property ID 236126,” Denton
Central Appraiser, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
Year Assessed Value Appraised Value Market Value
2016 $3,975,614.00 $3,975,614.00 $7,027,709.00
2015 $3,800,413.00 $3,800,413.00 $5,588,163.00
2014 $3,948,558.00 $3,948,558.00 $5,736,669.00
2013 $3,875,289.00 $3,875,289.00 $5,664,118.00
2012 $4,061,030.00 $4,061,030.00 $5,849,859.00
2011 $4,093,621.00 $4,093,621.00 $5,882,450.00
2010 $4,083,565.00 $4,083,565.00 $5,872,394.00
2009 $5,023,526.00 $5,023,526.00 $6,811,996.00
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17]
Tillerson’s 4.3 Acre Property Lot (ID 38038) Was Worth $184,258 Dollars In 2016; The Property Value Increased By 70.4
Percent Since 2009
Property Lot ID 38038 Is Composed Of 4.325 Acres. [General Information, “Property ID 38038,” Denton Central
Appraisal Office, Accessed 1/4/17]
In 2016, This Properties Market Value Was Over $184,250 Dollars. According to the Denton Central Appraisal District,
Tillerson’s property had an assessed property value in 2016 of $184,258. Such a value indicates that the property has increased
in value by 70.4 percent from $108,138 in 2009 to $184,258 in 2016. [2016 Values, “Property ID 236126,” Denton Central
Appraiser, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
79

Year Assessed Value Appraised Value Market Value
2016 $454.00 $454.00 $184,258.00
2015 N/A N/A $108,138.00
2014 N/A N/A $108,138.00
2013 N/A N/A $108,138.00
2012 N/A N/A $108,138.00
2011 N/A N/A $108,138.00
2010 N/A N/A $108,138.00
2009 N/A N/A $108,138.00
[2016 Values, “Property ID 38038,” Denton Central Appraisal Office, Accessed 1/4/17]
In 2016, The Tillerson’s Received Over $3.78 Million Dollars In Agricultural Use Tax Reductions And
Thus Their Property Taxes Were 48.7 Percent Cheaper Due To This Reduction
For The Past Seven Years, The Tillersons Have Paid Over $603,490 Dollars In Property Taxes For The Three
Property Parcels That Compose Bar RR Ranch. According to the Denton County Tax Collector, from January 15, 2010
through December 31, 2015, the Tillerson’s have paid $82,776.8 dollars in property taxes to Denton County for the three
property parcels that compose Bar RR Ranch. [Property Tax Record, “Account: 236126DEN,” Denton County Tax
Collector/Assessor, Accessed 1/4/17; Property Tax Record, “Account: 236125DEN,” Denton County Tax
Collector/Assessor, Accessed 1/4/17 Property Tax Record, “Account: 38038DEN,” Denton County Tax Collector/Assessor,
Accessed 1/4/17]
2016: The Tillerson’s Received Over $3.78 Million Dollars In Agricultural Use Tax Reductions. According to the
Denton Central Appraiser District, in 2016, Bar RR Ranch LLC received $3,782,109 dollars in agricultural use reductions.
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 236126,”
Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 38038,” Denton Central Appraisal Office, Accessed
1/4/17]
2016: The Tillerson’s Property Taxes For Bar RR Ranch Were Calculated To Be A Total Of $82,776.87. [2016 Values,
“Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 236126,” Denton Central
Appraiser, Accessed 1/4/17; 2016 Values, “Property ID 38038,” Denton Central Appraisal Office, Accessed 1/4/17]
According to Denton County, Three Properties Whose Value Equaled That Of The Three Properties of Bar RR
Ranch Would Have To Pay $161,499 Dollars In Property Taxes In 2016; According to the tax collector provided by the
Denton County Tax Collector’s Office, the total calculated property tax would be $161,499.02 for the owners of three
individual properties whose market values equaled that of each of the three property lots that comprise Bar RR Ranch.
In 2016, Tillerson’s Property Taxes Were 48.7 Percent Cheaper Than The Taxes Of An Identical Property Who Did
Not Have Agricultural Tax Exemptions. According to the tax calculator provided by the Denton County Tax Collector, in
2016, a property owner of three parcels who market value was the same as the three property plots that comprised Bar RR
Ranch and that were situated in the same county, city and special tax unit would have to pay $78,722.15 dollars more in
property taxes in 2016 since they were not granted an agricultural use reduction to their taxes.
2016: Tillerson Paid Over $11,360 Dollars Less In Property Taxes Than An Identical Property Valued At
$547,560 Dollars Due To The Agricultural Use Exemption. According to the tax calculator provided by the
Denton County Tax Collector, in 2016, The calculator calculated that in the case of Tillerson’s 12.8 property which
had a market value of $547,560 dollars, that his property taxes would be $11,367.57 dollars less than the property
taxes placed on an identical property that did not have the agricultural use exemption. [Tax Estimator Results,
“County: Denton County,” “City: Town of Bartonville,” “School: Denton ISD,” “special Unit: Denton CO ESD 1,”
“Value: 547560,” Accessed 1/4/17]
2016: Tillerson Paid Over $63,519 Dollars Less In Property Taxes Than An Identical Property Valued At
$7.02 Million Dollars Due To The Agricultural Use Exemption. According to the tax calculator provided by the
Denton County Tax Collector, in 2016, the calculator calculated that in the case of Tillerson’s 82.64 acre property
80

which had a market value of $7,027,709 dollars that his property taxes would be $63,519.11 dollars less than the
property taxes placed on an identical property that did not have the agricultural use exemption. [Tax Estimator
Results, “County: Denton County,” “City: Town of Bartonville,” “School: Denton ISD,” “special Unit: Denton CO
ESD 1,” “Value: 7027709,” Accessed 1/4/17]
2016: Tillerson Paid $3,825 Dollars Less In Property Taxes Than An Identical Property Valued At $184,258
Dollars Due To The Agricultural Use Exemption. According to the tax calculator provided by the Denton
County Tax Collector, in 2016, the calculator calculated that in the case of Tillerson’s 4.3 acre property which had a
market value of $184,258 dollars that his property taxes would be $3,825.27 dollars less than the property taxes placed
on an identical property that did not have the agricultural use exemption. [Tax Estimator Results, “County: Denton
County,” “City: Town of Bartonville,” “School: Denton ISD,” “special Unit: Denton CO ESD 1,” “Value: 184258,”
Accessed 1/4/17]
In 2016, Tillerson’s 12.8 Acres Of Property Had A 99.75 Percentage Tax Decrease Due To The Agricultural Tax Reduction
2009 – 2015: The Tillerson’s Paid $186.75 Dollars In Property Taxes For Their 12.8 Acre Property Lot. According to
the Denton County Tax Collector, from January 15, 2010 through December 31, 2015, the Tillerson’s have paid $186.75
dollars in property taxes to Denton County for property ID 236126. [Property Tax Record, “Account: 236126DEN,” Denton
County Tax Collector/Assessor, Accessed 1/4/17]
In 2016, The 12.8 Acre Property Lot (Property ID 23126) Received An Agricultural Use Tax Reduction Of $546,210.
[2016 Values, “Property ID 236126,” Denton Central Appraiser, Accessed 1/4/17]
In 2016, The Tillerson’s Property Tax For Their 12.8 Acre Property (ID Number 236126) Was Calculated To Be
$28.09. [Property Tax Record, “Account: 236126DEN,” Denton County Tax Collector/Assessor, Accessed 1/4/17]
According to Denton County, A Home Whose Market Value Equaled That Of Tillerson’s 12 Acre Property Value
Would Have To Pay Over $11,390 Dollars In Taxes In 2016. According to the Denton County Tax Collector, a property
whose market value was $547,560 dollars and did not receive any tax reductions and was located in the town of Bartonville
would have to pay the county $11,395.66 dollars in property taxes. [Tax Estimator Results, “County: Denton County,” “City:
Town of Bartonville,” “School: Denton ISD,” “Special Unit: Denton CO ESD 1,” “Value: 547560,” Accessed 1/4/17]
81

In 2016, Tillerson’s 82.64 Acres Of Property Had A 43.27 Percentage Tax Decrease Due To The Agricultural Tax Reduction
2009 – 2015: The Tillerson’s Paid $603,241.58 Dollars In Property Taxes For Their 82.64 Acre Property Lot. According
to the Denton County Tax Collector, from January 15, 2010 through December 31, 2015, the Tillerson’s paid $603,241.58
dollars in property taxes to Denton County for property ID 236125. [Property Tax Record, “Account: 236125DEN,” Denton
County Tax Collector/Assessor, Accessed 1/4/17]
In 2016, The 82.64 Property Lot (Property ID 236125) Received An Agricultural Use Tax Reduction Of $3,052,095.
[2016 Values, “Account: 236125DEN,” Denton County Tax Collector/Assessor, Accessed 1/4/17]
In 2016, The Tillerson’s Property Tax For Their 82.6 Acre Property (ID Number 236125) Was Calculated To Be
$82,739.33. [Property Tax Record, “Account: 236125DEN,” Denton County Tax Collector/Assessor, Accessed 1/4/17]
According to Denton County, A Home Whose Market Value Equaled That Of Tillerson’s 82.64 Acre Property Would
Have To Pay $146,258 Dollars In Taxes In 2016. According to the Denton County Tax Collector, a property whose market
value was $7,027,709 dollars and did not receive any tax reductions and was located in the town of Bartonville would have to
pay the county $146,258.64 dollars in property taxes. [Tax Estimator Results, “County: Denton County,” “City: Town of
Bartonville,” “School: Denton ISD,” “special Unit: Denton CO ESD 1,” “Value: 7027709,” Accessed 1/4/17]
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[2016 Tax E-Statement, Denton County Tax Collector, Accessed 1/4/17]
In 2016, Tillerson’s 4.3 Acres Of Property Had A X Percentage Tax Decrease Due To The Agricultural Tax Reduction
2009 – 2015: The Tillerson’s Paid $62.87 Dollars In Property Taxes For Their 4.3 Acre Property Lot. According to the
Denton County Tax Collector, from January 15, 2010 through December 31, 2015, the Tillerson’s paid $603,241.58 dollars in
property taxes to Denton County for property ID 236125. [Property Tax Record, “Account: 38038DEN,” Denton County
Tax Collector/Assessor, Accessed 1/4/17]
In 2016, The 4.325 Property Lot (Property ID 38038) Received An Agricultural Use Tax Reduction Of $183,804
Dollars. [2016 Values, “Property ID 38038,” Denton Central Appraisal District, Accessed 1/4/17]
In 2016, The Tillerson’s Property Tax For Their 4.3 Acre Property (ID Number 38038) Was Calculated To Be $9.45
Dollars. [Property Tax Record, “Account: 236125DEN,” Denton County Tax Collector/Assessor, Accessed 1/4/17]
According to Denton County, A Home Whose Market Value Equaled That Of Tillerson’s 4.3 Acre Property Would
Have To Pay Over $3,830 Dollars In Taxes In 2016. According to the Denton County Tax Collector, a property whose
market value was $184,258 dollars and did not receive any tax reductions and was located in the town of Bartonville would
have to pay the county $3,834.72 dollars in property taxes. [Tax Estimator Results, “County: Denton County,” “City: Town of
Bartonville,” “School: Denton ISD,” “Special Unit: Denton CO ESD 1,”, “Value: 184258,” Accessed 1/4/17]
Research
Limitations &
Continuing
Research: The
Denton Central
Appraisal
District’s
website only
the current tax
years tax
exemptions and
83

eductions available for public review. We have submitted a public records request for the tax rolls for these three properties
to obtain the amount that each property has received in agricultural use reductions. In addition, the Denton Central Appraisal
District’s website only provided the current assessed and appraised value for two of the three properties. We will submit a
public records request to the Denton Central Appraisal district to obtain these values and update our research once this data is
received.
$3.36 Million Worth Of Mortgage Debt Is Currently Open On The Property
2009: The Tillerson’s Obtained An Mortgage Worth $3.36 Million Dollars On His 120 Acre Property Located In
Bartonville, Texas. Since owning the property, Tillerson in his capacity as the owner of Bar RR Ranch LLC has obtained one
mortgage from Lone Star FLCA, totaling $3,359,500 worth of open mortgage debt.
Details of the mortgage are provided below:
Mortgage Provider Date Filed (Document Number) Date Released (Document Number) Amount
Lone Star, FLCA 9/28/2009
N/A $3,359,500.00
(Fort Worth, TX) (Document Number
2009-117454)
[Real Estate Deed of Trust, Document Number 2009-117454, Denton County Clerk’s Office, Filed 10/2/09; ERX-Deed of
Trust, Document Number 2010-68676, Denton County Clerk’s Office, Filed 7/14/10]
122 APPLEHEAD ISLAND DRIVE, HORSESHOE BAY, TX (2004 – PRESENT)
Tillerson And His Wife Have Owned The Property For The Past 12 Years
2004: Tillerson And His Wife Purchased Property Located at 122 Applehead Island Drive For An Unknown Amount.
On May 13, 2004, Rex and Renda Tillerson purchased property located at 122 Applehead Drive in Horseshoe Bay, Texas from
Rene and Kay Joyce for an unknown amount. [General Warranty Deed, Document #4195, Texas File, Accessed 1/4/17]
Tillerson’s Two-Story Mediterranean Style Home Offered 12,117 Square Feet Of Living Space, A Boat
House, And Waterfront Views Of The Colorado River
Tillerson’s Two-Story Home Offers Him and His Family 1,709 Square Feet of Living Area. According to Ilano central
appraisal district, Tillerson’s two-story mediterranean home offers 12,117 square feet of living area. The home has 4
bedrooms, 4 bathrooms, a boat house, a covered porch, balcony, and attached car garage. [Property Improvement-Building,
“Tillerson,” Ilano Central Appraisal District, Accessed 1/4/17; Zillow, Accessed 1/4/17]
Horseshoe Bay, Texas Is A Private Resort Development Community Where Homeowners Have Access To Clay
Tennis Courts And Private Golf Courses. According to the Texas Monthly, “Horseshoe Bay, a private resort development
on the shores of Lake LBJ, was the brainchild of Norman Hurd and Wayne Hurd, both of Brady They purchased property
and founded Horseshoe in the early seventies. Condos and hotel rooms are available for rent (in case you aren’t a member), in
which case you have access to all the resort’s amenities during your stay. What’s not to like? Clay tennis courts, a first-rate golf
course (the eighteen-hole putting course, Whitewater, is truly spectacular), swimming pools, Chinese gardens, and naturally,
the lake.” [Texas Monthly, June 2002]
Tillerson’s House Was Worth Over $3.23 Million Dollars In 2016
In 2016, The Property’s Value Was $3,252,760 Dollars. According to the Ilano Central Appraisal District, Tillerson’s
property has a market property value in 2016 of $3,252,760. Such a value indicates that the property has increased in value by
5.06 percent from $3,095,840 in 2009 to $3,252,760 in 2016. [Property Roll Value History, “Tillerson,” Ilano Central Appraisal
District, Accessed 1/4/17]
84

Tillerson’s property value is detailed in the table below:
Year Improvements Land Market Assessed Value
2016 $1,806,100.00 $1,446,660.00 $3,252,760.00
2015 $1,795,600.00 $1,446,660.00 $3,242,260.00
2014 $1,795,600.00 $1,446,660.00 $3,242,260.00
2013 $1,795,600.00 $1,446,660.00 $3,242,260.00
2012 $1,892,140.00 $1,446,660.00 $3,338,800.00
2011 $1,892,140.00 $1,446,660.00 $3,338,800.00
2010 $1,916,070.00 $1,446,660.00 $3,362,730.00
2009 $1,938,510.00 $1,157,330.00 $3,095,840.00
[Property Roll Value History, “Tillerson,” Ilano Central Appraisal District, Accessed 1/4/17]
Research Limitations: The Ilano Central Appraisal District’s website only published the assessed values for the home dating
back to 2009. We will submit a public records request for the prior years if the need arises.
Tillerson And His Wife Obtained One Mortgage For $1 Million Dollars And Have Fully Paid It Off
2004: The Tillerson’s Obtained A Mortgage From Wells Fargo Bank Worth $1 Million Dollars On His Property
Located At 122 Applehead Drive. Since owning the property, on May 14, 2004, Tillerson and his wife have obtained one
mortgage from Wells Fargo Bank that totaled $1,000,000 dollars.
Details of the mortgage are provided below:
Mortgage Provider Date Filed (Document Number) Date Released (Document Number) Amount
Wells Fargo Bank 5/20/2004
12/1/2011
$227,000.00
(Document Number 4196) (Document Number 11-06768)
[Deed of Trust, Document Number 4196, Texas File, Filed 5/20/04; Release, Document Number 11-06768, Texas File, Filed
12/1/11]
1515 HILLCREST STREET, FORT WORTH, TX (2014 – PRESENT)
[Zillow, Accessed 1/4/17]
85

Tillerson And His Wife Have Owned This Property For The Past Two Years
2014: Tillerson And His His Wife Purchased Property Located at 1515 Hillcrest Street For An Unknown Amount. On
June 9, 2014, Rex and Renda Tillerson purchased property located at 1515 Hillcrest Street in Fort Worth, Texas from Lewis
and Kathy Niewoehner for an unknown amount. [General Warranty Deed, Document #D214120763, Texas File, Accessed
6/10/14]
The Sale Price For The Property Located At 1515 Hillcrest Street Was Listed For $1.59 Million Dollars. According to
Zillow, as of April 16, 2014 the property located at 1515 Hillcrest Street in Fort Worth, Texas was being listed for sale for
$1,599,900 dollars. [Zillow, Accessed 1/4/17]
Tillerson’s Two-Story Home Offered 5,406 Square Feet Of Living Area, Guest Quarters, And An Outdoor
Fire Pit
Tillerson’s Two-Story Home Offers Him and His Family 1,709 Square Feet of Living Area. According to Tarrant
appraisal district, Tillerson’s home offers him and his family over 5,406 square feet of living area and .3 acres of land. The
home is composed of 20 rooms, which include 5 bedrooms, 3 full bathrooms, 2 half bathrooms, five fireplaces, separate guest
quarters, an outdoor fire pit, and a two-car attached garage. [Certified Values, “Account Number: 02451816,” Tarrant
Appraisal District, Accessed 1/4/17; Coldwell Banker Homes, Accessed 1/4/17]
Tillerson’s House Was Worth Over $1.59 Million Dollars In 2016
In 2016, The Property’s Value Was $1,599,900 Dollars. According to the Tarrant Appraisal District, Tillerson’s property
has a market property value in 2016 of $1,599,900. Such a value indicates that the property has not changed in since it was
purchased in 2014. [5-Year Value History, “Account Number: 02451816,” Tarrant Appraisal District, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
Year Market Land Market Improvements Market Total
2016 $612,500.00 $987,400.00 $1,599,900.00
2015 $487,500.00 $1,112,400.00 $1,599,900.00
2014 $487,500.00 $1,112,400.00 $1,599,900.00
[5-Year Value History, “Account Number: 02451816,” Tarrant Appraisal District, Accessed 1/4/17]
7332 AMBER DRIVE, WATAUGA, TX (2002 – PRESENT)
[Google Maps, Accessed 1/4/17]
86

Tillerson And His Wife Have Owned The Property For The Past 14 Years
2002: Tillerson And His Wife Purchase Property Located At 7332 Amber Drive For An Unknown Amount. On April
15, 2002, Rex and Renda Tillerson purchased property located at 7332 Amber Drive in Watauga, Texas from Nancy Althoff
and Judith Worley for an unknown amount. [Warranty Deed, Document Number D202112153, Texas File, Filed 4/24/02]
Tillerson’s One-Story Home Offered 1,452 Square Feet Of Living Space And An Attached Car Garage
Tillerson’s Home Offers Him And His Family 1,425 Square Feet Of Living Space. According to the Tarrant appraisal
district, Tillerson’s one-story home offers him and his family 1,425 square feet of living area and .1198 acres of land.
Tillerson’s home is composed of 3 bedrooms, 2 bathrooms, and an attached car garage. [Certified Values, “Account Number:
05007976,” Tarrant Appraisal District, Accessed 1/4/17; Zillow, Accessed 1/4/17]
Tillerson’s House Was Worth Over $152,900 Dollars In 2016
In 2016, The Property’s Value Was $152,901 Dollars. According to the Tarrant Appraisal District, Tillerson’s property has a
market property value in 2016 of $152,901. Such a value indicates that the property value has increased by 28.6 percent from
$118,900 dollars in 2011 to $152,901 in 2016. [5-Year Value History, “Account Number: 05007976,” Tarrant Appraisal
District, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
Year Market Land Market Improvements Market Total
2016 $25,000.00 $127,901.00 $152,901.00
2015 $15,000.00 $110,000.00 $125,000.00
2014 $15,000.00 $110,000.00 $125,000.00
2013 $15,000.00 $110,000.00 $125,000.00
2012 $15,000.00 $103,900.00 $118,900.00
2011 $15,000.00 $103,900.00 $118,900.00
[5-Year Value History, “Account Number: 05007976,” Tarrant Appraisal District, Accessed 1/4/17]
FM 1374 EAST, NEW WAVERLY, TX (2005 – PRESENT)
Tillerson And His Wife Have Owned The Property For The Past Eleven Years
2005: Tillerson And His Wife Purchased Property Located At FM 1374 East For An Unknown Amount. On July 7,
2005, Rex and Renda Tillerson purchased property located at FM 1374 East in New Waverly, Texas from Everand and Linda
Whitaker for an unknown amount. [Warranty Deed, Document #00006279, Texas File, Filed 7/28/05]
Tillerson’s Property Offered 1,456 Square Feet Of Living Area And 6.3 Acres Of Land Which Included A
Shed, Tin Building, And One Residential Building
Tillerson’s Home Offers Him And His Family 1,456 Square Feet Of Living Space And 6.3 Acres Of Land. According
to the Walker Central Appraisal District, Tillerson’s home offers him and his family 1,456 square feet of living space and 6.3
acres of land. The property has one residential building with a covered porch and a carport and also on the property there is a
shed and tin building. [Property Improvement, “Property ID #20821,” Walker Central Appraisal District, Accessed 1/4/17]
Tillerson’s Property Was Worth Over $144,800 Dollars In 2016; Property Increased By Over 100 Percent
Since 2009
87

In 2016, The Property’s Value Was $144,860 Dollars. According to the Walker Central Appraisal District, Tillerson’s
property has a market property value in 2016 of $144,860. Such a value indicates that the property has increased in value by
196.6 percent from $48,840 dollars in 2009 to $144,860 in 2016. [Property Improvement, “Property ID #20821,” Walker
Central Appraisal District, Accessed 1/4/17]
Tillerson’s property value is detailed in the table below:
Year Improvements Land Market Agricultural Appraised Assessed
Valuation
2016 $39,770.00 $105,090.00 $0.00 $144,860.00 $144,860.00
2015 $40,510.00 $97,190.00 $0.00 $137,700.00 $137,700.00
2014 $36,200.00 $74,840.00 $0.00 $111,040.00 $111,040.00
2013 $36,940.00 $70,180.00 $0.00 $107,120.00 $107,120.00
2012 $37,500.00 $68,620.00 $0.00 $106,120.00 $106,120.00
2011 $37,500.00 $86,360.00 $0.00 $123,860.00 $123,860.00
2010 $37,500.00 $46,680.00 $630.00 $48,840.00 $48,840.00
2009 $37,500.00 $46,680.00 $630.00 $48,840.00 $48,840.00
[Property Roll Value History, “Property ID #20821,” Walker Central Appraisal District, Accessed 1/4/17]
88

Personal Litigation
Personal Litigation
Note: For Exxon litigation during Tillerson’s tenure at the company, see “Major litigation” in the Exxon section
Tillerson Named As A Party In 5 Federal And State Lawsuits. Since 2008, Tillerson has been named as the defendant in 5
federal and local lawsuits.
Details of all identified cases involving Tillerson are provided in the table below:
Case Name Case Number Date Filed Location Party Nature
Role
Douglas A.
Grandt v. Rex
W. Tillerson
C14-296J4 5/13/2014 Denton County
Civil Court,
Texas
Defendant Small claims- the
nature of the small
claim is unknown.
On 6/11/2014, the
court ruled in favor
Yvonne Hewett
v. Rex Tillerson
Joseph Klein v.
Mike Haijar
Riches v.
Tillerson
Riches v.
Tillerson
SC-002593-09 8/6/2009 Special Civil
Part, Essex
County Court,
New Jersey
37-2008-SC-
002088
5/15/2008 Leon County
Civil Court,
Florida
6:08-cv-02039 5/29/2008 U.S. District
Court, South
Carolina,
Greenville
1:08-cv-01121 5/27/2008 U.S. District
Court, Central
District of
Illinois, Peoria
Defendant
(Debtor)
of Tillerson.
Civil- claim and/or
debt amount
unknown.
Defendant Small claims- claim
unknown. On
7/9/2008, the court
dismissed the claim
against Tillerson.
Defendant Civil- petition for
writ of habeas
corpus. On
9/30/2008, the court
dismissed the case
and the appeal.
Defendant Civil-petition for writ
of habeas corpus. On
5/29/2008, the court
transferred the case
to South Carolina’s
district court.
[Public Access to Court Electronic Records, “Tillerson, Rex,” Accessed 12/13/16; Register of Actions, “Tillerson, Rex,”
Denton County Court, Filed 5/13/14; New Jersey Courts Public Access, “Tillerson, Rex,” Accessed 12/13/16; Full Case
View, “Tillerson, Rex,” Leon County Clerk of Courts, Accessed 12/13/16]
Ongoing Research: We have submitted an open records request to the Essex County Court and to Leon County Court to
obtain the complaint and final judgements in these cases. We will update this section upon receipt of these records.
2014: Fracking “Nimby” Lawsuit
89

TILLERSON JOINED A LAWSUIT OPPOSING CONSTRUCTION OF FRACKING
WATER TOWER NEAR HIS BARTONVILLE, TX RANCH
Rex Tillerson Joined 11 Other Plaintiffs To File A Lawsuit To Stop The Construction Of A Water Tower That Would
Be Used To Support Fracking Projects Near His Ranch In Bartonville, TX. According to Natural Gas Week, “Exxon
Mobil Chief Executive Rex Tillerson and 11 other plaintiffs, have filed a lawsuit to stop the construction of a water tower that
would be used to support nearby hydraulic fracturing operations near their properties. Tillerson owns a horse ranch north of
Dallas in Bartonville. The suit claims the tower violates zoning rules and neighborhood ordinances. US Rep. Jared Polis (D-
Colorado) said Exxon Mobil has sued cities in his district for attempting to block the construction or development of nearby
drilling operations.” [Natural Gas Week, 3/3/14]
2014: Rex Tillerson Joined A Lawsuit Aimed At Preventing Construction Of A Water Tower Near His Property That
Would Be Used For Hydraulic Fracking. According to MSNBC’s All in with Chris Hayes, “HAYES: So, Rex Tillerson
thinks fracking in someone`s backyard is perfectly legit, but fracking near his own backyard, now, that`s a different story. And
really, who could blame him? Tillerson and his wife own an 83-acre horse ranch in Bartonville, Texas, a Dallas suburb. It`s
worth over $5 million. A remote sprawling estate and the Tillersons would like to keep it that way. TILLERSON: We would
like to stay here a long time. I cannot stay in place where I do not know who to count on. HAYES: You see, Bartonville is
located right smack-dab in the middle of the fracking bonanza sweeping across Texas. And in order to frack, you need a ton of
water and you have to store that water somewhere in the ground or pools or 160-foot water tower like the one being built near
Tillerson`s home. Well, guess what? Tillerson and his wealthy neighbors don`t want an ugly water tower near their
multimillion dollar properties, thank you very much, so they`re suing. Tillerson and his wife have joined several of their
neighbors in a lawsuit to stop the construction of the water tower.” [MSNBC’s All In with Chris Hayes, 2/24/14]
Rex Tillerson Joined A Lawsuit To Protest Construction Of A Water Tower Near His Home In Bartonville, TX.
According to Wall Street Journal Abstracts, “Daniel Gilbert Marketplace article examines reasons why Exxon Mobil CEO Rex
Tillerson has joined suit to protest construction of water tower near his home in Bartonville, Tex; suit says tower would create
noise and traffic problems related to fracking while Tillerson reportedly is concerned about harm to his property value;
drawing; photo; map (M)” [Wall Street Journal Abstracts, 2/21/14]
The Water Tower Was Designed To Supply Water For Fracking. According to The Independent, “The chairman
and chief executive of ExxonMobil, Rex Tillerson (pictured with golfer Phil Mickelson at last week’s Pebble Beach Pro-
Am), is being accused of nimbyism after joining a lawsuit aimed at blocking a Texas water tower to supply water for
fracking. He is worried it will hit the value of his $5m (£3m) house next door but under Mr Tillerson’s leadership
ExxonMobil makes huge profits from fracking.” [The Independent, 2/25/14]
Tillerson Opposed The Water Tower On The Grounds That It Would Be An Eyesore
Rex Tillerson Opposed The Water Tower On Grounds That It Would Be Taller Than The Town Had Proposed.
According to Chicago Tribune, “It’s not every day that the chief executive of the largest U.S. energy company joins a lawsuit
opposing a water tower that could support fracking. Officials at Exxon Mobil said this week that CEO Rex Tillerson was
opposed to the plan for a tower in his neighborhood not because of fracking, but because the tower would be taller than what
his town outside Dallas had proposed. Tillerson, former Republican heavyweight Dick Armey and others sued in 2012 seeking
to block construction of the 160-foot-tall tower, arguing it would be an eyesore. The suit also noted that the tower could
encourage the town to sell water to oil and gas explorers for fracking, creating noise and traffic.” [Chicago Tribune, 2/28/14]
REACTION: TILLERSON DID NOT WANT FRACKING TO IMPACT HIS HOME
VALUE
MSNBC’s Chris Hayes: “You See, Armby And Tillerson Are Just Concerned About The Value Of Their Luxury
Properties Worth Multiple Millions Of Dollars.” According to MSNBC’s All in with Chris Hayes, “HAYES: The lawsuit
argues the tower, which would be used for fracking, would create a noise, nuisance and traffic hazards. You may recognize the
suit`s lead plaintiff, former House majority leader and noted environmentalist Dick Armey. You see, Armey and Tillerson are
90

just concerned about the value of their luxury properties worth multiple millions of dollars. A lawsuit explains that residents
simply want to live in an upscale community free of industrial properties, tall buildings and other structures that might devalue
their properties and adversely impact the rural lifestyle they sought to enjoy.” [MSNBC’s All In with Chris Hayes, 2/24/14]
Rex Tillerson Opposed The Water Tower On Grounds That It Would Be Taller Than The Town Had Proposed.
According to Chicago Tribune, “It’s not every day that the chief executive of the largest U.S. energy company joins a lawsuit
opposing a water tower that could support fracking. Officials at Exxon Mobil said this week that CEO Rex Tillerson was
opposed to the plan for a tower in his neighborhood not because of fracking, but because the tower would be taller than what
his town outside Dallas had proposed. Tillerson, former Republican heavyweight Dick Armey and others sued in 2012 seeking
to block construction of the 160-foot-tall tower, arguing it would be an eyesore. The suit also noted that the tower could
encourage the town to sell water to oil and gas explorers for fracking, creating noise and traffic.” [Chicago Tribune, 2/28/14]
APRIL 2014: TILLERSON WITHDREW FROM THE LAWSUIT
Rex Tillerson Withdrew From A Lawsuit Seeking To Stop Construction Of A Water Tower Near His Horse Ranch.
According to Wall Street Journal Abstracts, “Exxon Mobil Corp CEO Rex Tillerson withdraws from lawsuit seeking to
demolish water tower near his horse ranch in Bartonville, Tex; photo (M)” [Wall Street Journal Abstracts, 4/19/14]
Section Overview:
EXXONMOBIL (1975 – PRESENT)
Tillerson pursued a global business strategy at Exxon that explicitly disregarded U.S. foreign interests and at times actively
opposed it. Under Tillerson, Exxon undermined the U.S. policy of “One Iraq” by entering into contracts with the
Kurdish regional government independently of Iraq’s central government. Exxon, through Tillerson’s leadership, also
entered into several lucrative deals with America’s chief geo-political adversary, Russia, and was a vocal critic of U.S.
sanctions.
Tillerson defended oil and gas industry’s record profits at a time American consumers faced high prices at the pump. In
2006, as oil prices spiked along with Exxon’s profits, Tillerson went on the Today Show and told Matt Lauer Exxon
would not lower profits to help out average Americans because “we're in the business to make money.” In the same
interview, Tillerson defended the $357 million retirement package Exxon had just awarded to outgoing CEO, Lee
Raymond, and dismissed criticism of the package as “a distraction.”
Tillerson made several missteps as Exxon’s CEO. His decision in 2007 to pull out of Venezuela rather than accede to
demands made by the Venezuelan government lost Exxon billions. Tillerson’s big bet on natural gas in purchasing U.S.
natural gas giant XTO Energy turned out to be a bust and resulted in a large sell off of Exxon stock. Additionally,
Tillerson’s massive investments in Russian ventures proved misguided as the vast majority of those investments were
forcibly halted due to U.S. sanctions.
Tillerson carried out a global business strategy at Exxon that put profits over human rights. Under Tillerson, Exxon made
numerous deals that financially benefited corrupt and authoritarian governments, including, Russian dictator Vladimir
Putin, Idriss Deby’s regime in Chad, and Muammar Gaddafi’s government in Libya. Moreover, Exxon has a history of
doing business with state sponsors of terrorism, and Tillerson has expressed openness to working with these countries in
the future. In 2016, Exxon’s credit rating was downgraded from AAA To AA+ By Standard And Poor’s.
Tillerson did not invest in disaster preparedness at Exxon and admitted so before Congress saying that Exxon and others
were “not very well equipped to handle” events like the Deepwater Horizon spill.
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In 2013, ExxonMobil faced a discrimination lawsuit alleging the company hired based on sexual orientation. The Illinois
Department of Human Rights found “substantial evidence” to corroborate the claim. As of 2016, the litigation is ongoing
From Engineer To CEO
1975: TILLERSON JOINED EXXON AFTER GRADUATING COLLEGE
1975: Rex Tillerson Joined Exxon After Earning A Degree In Civil Engineering At The University Of Texas At
Austin. According to Dallas Morning News, “A Wichita Falls native, Mr. Tillerson joined Exxon in 1975 as a production
engineer after earning a degree in civil engineering at the University of Texas at Austin. He now oversees oil exploration and
production activities that accounted for more than two-thirds of the company's $21.5 billion in profit last year. The company's
overall 2003 revenue was $246.7 billion.” [Dallas Morning News, 2/27/04]
1975 – 1995: TILLERSON’S EARLY CAREER AT EXXON
1975 – 1987: Served Various Engineering, Technical and Supervisory Positions At Exxon Co. USA (EUSA)
1975 – 1987: Rex Tillerson Held Several Engineering, Technical, And Supervisory Assignments In EUSA's
Production Department Throughout Texas. According to Oil and Gas Journal, “Tillerson joined Exxon Co. USA (EUSA)
in 1975 as a production engineer. He held several engineering, technical, and supervisory assignments in EUSA's production
department throughout Texas, and in 1987 he was named business development manager in EUSA's natural gas department.
In 1989, he became general manager of EUSA's central production division, responsible for oil and gas production operations
throughout a large portion of Texas, Oklahoma, Arkansas, and Kansas. In 1995 Tillerson was named president of
ExxonYemen Inc. and Esso Exploration & Production Khorat Inc., and in January 1998, he was named vice-president of
Exxon Ventures (CIS) Inc. and president of Exxon Neftegas Ltd.” [Oil and Gas Journal, 8/22/05]
1987: Promoted to Business Development Manager At Exxon Co. USA (EUSA) Natural Gas Department
1987: Rex Tillerson Named Business Development Manager In Exxon Co. USA Natural Gas Department. According
to Oil and Gas Journal, “Tillerson joined Exxon Co. USA (EUSA) in 1975 as a production engineer. He held several
engineering, technical, and supervisory assignments in EUSA's production department throughout Texas, and in 1987 he was
named business development manager in EUSA's natural gas department. In 1989, he became general manager of EUSA's
central production division, responsible for oil and gas production operations throughout a large portion of Texas, Oklahoma,
Arkansas, and Kansas. In 1995 Tillerson was named president of ExxonYemen Inc. and Esso Exploration & Production
Khorat Inc., and in January 1998, he was named vice-president of Exxon Ventures (CIS) Inc. and president of Exxon
Neftegas Ltd.” [Oil and Gas Journal, 8/22/05]
1989: Promoted To General Manager Of Exxon Co. USA (EUSA) Natural Central Production Division
1989: Rex Tillerson Became General Manager Of Exxon Co. USA Central Production Division, Responsible For Oil
And Gas Production Operations Throughout A Large Portion Of Texas, Oklahoma, Arkansas, And Kansas.
According to Oil and Gas Journal, “Tillerson joined Exxon Co. USA (EUSA) in 1975 as a production engineer. He held
several engineering, technical, and supervisory assignments in EUSA's production department throughout Texas, and in 1987
he was named business development manager in EUSA's natural gas department. In 1989, he became general manager of
EUSA's central production division, responsible for oil and gas production operations throughout a large portion of Texas,
Oklahoma, Arkansas, and Kansas. In 1995 Tillerson was named president of ExxonYemen Inc. and Esso Exploration &
Production Khorat Inc., and in January 1998, he was named vice-president of Exxon Ventures (CIS) Inc. and president of
Exxon Neftegas Ltd.” [Oil and Gas Journal, 8/22/05]
1995: TILLERSON NAMED PRESIDENT OF EXXONYEMEN INC. AND ESSO
EXPLORATION & PRODUCTION KHORAT INC.
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1995: Rex Tillerson Named President Of ExxonYemen Inc. And Esso Exploration & Production Khorat Inc.
According to Oil and Gas Journal, “Tillerson joined Exxon Co. USA (EUSA) in 1975 as a production engineer. He held
several engineering, technical, and supervisory assignments in EUSA's production department throughout Texas, and in 1987
he was named business development manager in EUSA's natural gas department. In 1989, he became general manager of
EUSA's central production division, responsible for oil and gas production operations throughout a large portion of Texas,
Oklahoma, Arkansas, and Kansas. In 1995 Tillerson was named president of ExxonYemen Inc. and Esso Exploration &
Production Khorat Inc., and in January 1998, he was named vice-president of Exxon Ventures (CIS) Inc. and president of
Exxon Neftegas Ltd.” [Oil and Gas Journal, 8/22/05]
1997: Deal With Hunt Oil And Yemeni Government To Build LNG Project
Under Tillerson, Exxon Entered A Deal To Develop A Multi-Billion Dollar Liquefied Natural Gas Project In Yemen
Exxon And Hunt Oil Signed An Agreement To Clear The Way To Market And Develop A Multi-Billion Dollar
Liquefied Natural Gas Project In Yemen. According to the Dallas Morning News, “Exxon Corp. and Hunt Oil Co. have
signed a long-awaited agreement that could clear the way to market and develop a multibillion-dollar liquefied natural gas
project in Yemen. Exxon of Irving and Hunt of Dallas formalized a deal with Total SA of France and Korea's Yukong Ltd. on
Sunday in Sana'a, the capital of Yemen. The venture will develop gas reserves at the Marib oil fields in western Yemen, on the
southern tip of the Arabian Peninsula. Financial terms weren't disclosed, but cost estimates of the project have ranged from $
2.5 billion to $ 5 billion. The Marib area is believed to hold between 9 trillion cubic feet and 15 trillion cubic feet of
recoverable natural gas. The 25-year agreement must be approved by Yemen's Parliament and signed into law by the president
of Yemen. ‘We are pleased that the long process of constructing these very complex agreements among the parties is
completed, and we look forward to the Yemen Parliament's positive consideration of the two laws,’ said Rex W. Tillerson,
president of Exxon Yemen Inc. Hunt Oil officials also confirmed the deal Monday in a statement, saying they are ‘looking
forward to participating with the government of Yemen and units of Exxon, the Yukong consortium and Total in the years to
come.’ The gas will be converted to liquid form for export by tanker to markets in Asia and Europe - much of it to Turkey.”
[Dallas Morning News, 1/21/97]
1997: Rex Tillerson Was President Of Exxon Yemen Inc. According to the Dallas Morning News, “Exxon Corp.
and Hunt Oil Co. have signed a long-awaited agreement that could clear the way to market and develop a multibilliondollar
liquefied natural gas project in Yemen. Exxon of Irving and Hunt of Dallas formalized a deal with Total SA of
France and Korea's Yukong Ltd. on Sunday in Sana'a, the capital of Yemen. The venture will develop gas reserves at
the Marib oil fields in western Yemen, on the southern tip of the Arabian Peninsula. Financial terms weren't disclosed,
but cost estimates of the project have ranged from $ 2.5 billion to $ 5 billion. The Marib area is believed to hold
between 9 trillion cubic feet and 15 trillion cubic feet of recoverable natural gas. The 25-year agreement must be
approved by Yemen's Parliament and signed into law by the president of Yemen. ‘We are pleased that the long
process of constructing these very complex agreements among the parties is completed, and we look forward to the
Yemen Parliament's positive consideration of the two laws,’ said Rex W. Tillerson, president of Exxon Yemen Inc.
Hunt Oil officials also confirmed the deal Monday in a statement, saying they are ‘looking forward to participating
with the government of Yemen and units of Exxon, the Yukong consortium and Total in the years to come.’ The gas
will be converted to liquid form for export by tanker to markets in Asia and Europe - much of it to Turkey.” [Dallas
Morning News, 1/21/97]
1998: TILLERSON PROMOTED TO VICE-PRESIDENT OF EXXON VENTURES
(CIS) INC. AND EXXON NEFTEGAS LTD
1998: Rex Tillerson Named Vice-President Of Exxon Ventures (CIS) Inc. And President Of Exxon Neftegas Ltd.
According to Oil and Gas Journal, “Tillerson joined Exxon Co. USA (EUSA) in 1975 as a production engineer. He held
several engineering, technical, and supervisory assignments in EUSA's production department throughout Texas, and in 1987
he was named business development manager in EUSA's natural gas department. In 1989, he became general manager of
EUSA's central production division, responsible for oil and gas production operations throughout a large portion of Texas,
Oklahoma, Arkansas, and Kansas. In 1995 Tillerson was named president of ExxonYemen Inc. and Esso Exploration &
Production Khorat Inc., and in January 1998, he was named vice-president of Exxon Ventures (CIS) Inc. and president of
Exxon Neftegas Ltd.” [Oil and Gas Journal, 8/22/05]
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At Exxon Neftegas Ltd, Tillerson Was Responsible For Exxon’s Holdings In Russia
At Exxon Neftegas, Tillerson Was Responsible For Exxon’s Holdings In Russia. “Two names have emerged in the
race to replace him: Rex Tillerson, senior vice-president with responsibility for exploration and production, and Ed Galante,
senior vice-president responsible for refining and chemicals. Both have excellent credentials. Tillerson joined Exxon in 1975 as
a production engineer, moving up the ladder before being made president of Exxon Neftegas where he was responsible for
Exxon's holdings in Russia. Galante joined Exxon's American marketing department in 1972, and his senior roles include
being chairman and managing director of Esso Thailand. The pair have been paraded around Wall Street and the board of
directors has met both men. But while some are already placing their bets, analysts are not sure whether Raymond is going
soon.” [Australian, 1/27/04]
1990s: Rex Tillerson Negotiated Exxon’s Investments In Sakalin Island And The Caspian Sea. According to the New
York Times, “A native of Wichita Falls, Tex., Mr. Tillerson, who turned 54 this month, joined Exxon in 1975 as a production
engineer after graduating from the University of Texas with a degree in civil engineering. He later ran some of Exxon's
American operations. In the early 1990's, he was responsible for negotiating the company's investments in Sakhalin Island in
Russia, as well as in the Caspian Sea. Since he started at Exxon, the energy business has changed radically. Easy-to-find oil has
been mostly found, opportunities for new resources are scarcer, competition is rising and governments are tightening the
screws on international oil companies.” [New York Times, 3/30/06]
1999: TILLERSON BECAME EXECUTIVE VICE-PRESIDENT OF EXXONMOBIL
DEVELOPMENT CO.
1999: Rex Tillerson Became Executive Vice-President Of ExxonMobil Development Co. According to Oil and Gas
Journal, “Tillerson was elected senior vice-president on Aug. 1, 2001. In December 1999, he became executive vice-president
of ExxonMobil Development Co. He joined Exxon Co. USA in 1975 as a production engineer.” [Oil and Gas Journal,
3/22/04]
2001: TILLERSON PROMOTED TO SENIOR VICE PRESIDENT OF EXXON
MOBIL CORP.
2001: Rex Tillerson Was Promoted From Executive Vice President At Exxon Mobil Development Co. To Senior
Vice President Of Exxon Mobil Corp. According to the Dallas Morning News, “Exxon Mobil Corp. chairman and chief
executive Dr. Lee Raymond will delay his retirement beyond his 65th birthday in August 2003 to give the company's board
more time to choose a successor. Dr. Raymond had been expected to leave when he turned 65, the company's mandatory
retirement age. Dr. Raymond turns 63 next month, said spokesman Tom Cirigliano. […] Following its regularly scheduled
meeting Wednesday, the board also announced the promotions of five executives who will serve with Dr. Raymond on the
management committee. Ed Galante, 50, currently executive vice president at Exxon Mobil Chemical Co., and Rex Tillerson,
49, currently executive vice president at Exxon Mobil Development Co., were elected senior vice presidents of Exxon Mobil
Corp. Rene Dahan, 59, Harry Longwell, 60, and Gene Renna, 56, currently senior vice presidents and directors of Exxon
Mobil Corp., were promoted to the newly created position of executive vice president. All the promotions take effect Aug. 1.
‘All five managers mentioned are certainly potential candidates to succeed Lee Raymond at the appropriate time, and there
may be more candidates in the future,’ Mr. Cirigliano said. The board didn't set a specific time for Dr. Raymond's retirement.”
[Dallas Morning News, 7/26/01]
2004: TILLERSON PROMOTED TO PRESIDENT OF EXXON MOBIL AND CORP.
BOARD MEMBER
February, 2004: Exxon Mobil Corp. Promoted Rex Tillerson To President And Added Him To Its Board Of
Directors. According to the Dallas Morning News, “Exxon Mobil Corp. has taken a major step toward determining the next
leader of the world's largest publicly traded oil company, promoting Rex Tillerson to president and adding him to the board of
directors. Mr. Tillerson, 51, a senior vice president whose appointment takes effect Monday, is widely viewed by analysts as a
likely successor to Lee Raymond, chairman and chief executive. Both Dr. Raymond and Lawrence Rawl, his predecessor who
retired in April 1993, held the position of president before becoming CEO.” [Dallas Morning News, 2/27/04]
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Rex Tillerson Oversaw Oil Exploration And Production Activities That Accounted For More Than Two-Thirds Of
The Company's $21.5 Billion In Profit In 2003. According to Dallas Morning News, “A Wichita Falls native, Mr. Tillerson
joined Exxon in 1975 as a production engineer after earning a degree in civil engineering at the University of Texas at Austin.
He now oversees oil exploration and production activities that accounted for more than two-thirds of the company's $21.5
billion in profit last year. The company's overall 2003 revenue was $246.7 billion.” [Dallas Morning News, 2/27/04]
2004: Rex Tillerson Was Among A Group Of Energy Executives That Met With The Head Of OAO Gazprom To
Discuss Western Investment In Russia’s Fledgling Natural Gas Sector. According to the Globe and Mail, “Petro-
Canada CEO Ron Brenneman was part of an elite group of energy executives that met with the head of Russian energy giant
OAO Gazprom in New York this week to discuss Western investment in Russia's nascent liquefied natural gas sector. Mr.
Brenneman was the only executive from a Canadian company present at a Thursday meeting with Gazprom chief executive
officer Alexei Miller, Rex Tillerson, president of Exxon Mobil Corp., and Jim Mulva, president and CEO of ConocoPhillips
Co. Gazprom said the meetings focused on how to bring Russian gas to the U.S., ‘largely supplied’ from its Shtokmanovskoye
field in the Barents Sea.” [Globe and Mail (Canada), 9/25/04]
2006: AT AGE 53, TILLERSON SUCCEEDED LEE RAYMOND AS CEO OF
EXXONMOBIL
2006: Rex Tillerson Succeeded Lee Raymond As CEO Of ExxonMobil. “Exxon Mobil shares surged to $63.11, up
$1.82, or 2.97 percent. However, even as investors applauded Exxon Mobil's new chief executive, Rex W. Tillerson, who
succeeded Lee R. Raymond at the start of this year, Exxon Mobil's results masked potentially weaker profits if oil and gas
prices begin to decline.” [New York Times, 1/31/06]
Tillerson Took Over As CEO Of Exxon When He Was Fifty-Three Years Old. According to Private Empire: ExxonMobil
and American Power, “Apart from a divorce and remarriage during his early career, there was little evidence of complexity in
Tillerson’s life. He was fifty-three when he succeeded Raymond: Exxon was the only company for which he had worked after
college. He did not possess the fierce intellectual independence (or the sometimes gratuitous meanness) of Lee Raymond. If
Tillerson were to match Raymond ‘s financial achievements as Exxon Mobil’s leader, however, he would have to learn to think
for himself.” [Private Empire: ExxonMobil and American Power, pg. 332-333, 2012]
Tillerson Was Favored To Be Lee Raymond’s Successor
Former ExxonMobil Director: “There Was Just No Question That Rex Was Going To Be The Successor.” According
to Private Empire: ExxonMobil and American Power, “His upstream experience seemed to give Tillerson a built-in advantage,
because at ExxonMobil, as a director put it, ‘real men-they discover oil.’ A few members of the board felt, as the director
recalled, ‘there was just no question that Rex was going to be the successor. He came from the discovery side.’” [Private
Empire: ExxonMobil and American Power, pg. 210, 2012]
ExxonMobil Directors Assumed Rex Tillerson Would Succeed Lee Raymond Due To His Command Of Big Oil
And Gas Portfolios Abroad. According to Private Empire: ExxonMobil and American Power, “Raymond had insisted that the
downstream businesses had to stand on their own; Galante had been part of this successful transformation. Still, because some
members of the board of directors assumed Tillerson would prevail, largely because of his command of the big oil and gas
portfolios abroad, they questioned Raymond’s motivations. ‘My concern was that it was kind of a charade to buy him
[Raymond] more time,’ a director said.” [Private Empire: ExxonMobil and American Power, pg. 210, 2012]
Prior To Becoming CEO, Tillerson Spent Entire Career In Exxon’s Production Units
Rex Tillerson Spent His Entire Career Before Assuming The Position Of CEO Of Exxon At Exxon’s Production
Units. According to The New York Times, “His successor, Mr. Tillerson, was born in Wichita Falls, Tex. He joined Exxon in
1975 as a production engineer after graduating from the University of Texas at Austin with a degree in civil engineering. He
rose through the company's ranks in the United States, Yemen and Russia, spending his entire career at Exxon's production
units. He was named president in March 2004, an obvious steppingstone to succeeding Mr. Raymond.” [New York Times,
8/5/05]
95

Tillerson’s Experience In Russia Contributed To His Promotion
Private Empire: Tillerson “Had Risen To The Cusp Of The Top Job At Exxonmobil Partly On The Strength Of His
Work In Russia.” According to Private Empire: ExxonMobil and American Power, “In early April 2002, Rex Tillerson arrived at
the ExxonMobil terminal D at Love Field in Dallas to board a jet to Moscow. Tillerson had turned fifty less than three weeks
before. He had risen to the cusp of the top job at ExxonMobil partly on the strength of his work in Russia. The Bush
administration’s oil initiative placed ExxonMobil ‘s business dealings in Russia in a new light. There was now the potential, if
all went well, for ExxonMobil to acquire substantial equity oil in Russian fields, enough to make a major contribution to the
corporation’s reserve replacement requirements. There was no other place on Earth where the corporation enjoyed such full
and explicit partnership with the White House in the pursuit of such large oil holdings-the sort of partnership that
ExxonMobil executives often claimed they neither wanted nor needed.” [Private Empire: ExxonMobil and American Power,
pg. 258, 2012]
CNN’s Poppy Harlow: “One Of The Reasons That Rex Tillerson Was Actually Selected For The CEO Post At
Exxonmobil Back In 2006, Is In Part Because Of His Relationship With Russia.” According to CNN, “HARLOW:
Really? I mean, he did receive an award, the Order of Friendship, one of the highest awards that Russia bestows on foreign
citizens just a few years ago. And CNN Money is also reporting a really fascinating tidbit tonight. And that is that one of the
reasons that Rex Tillerson was actually selected for the CEO post at ExxonMobil back in 2006, is in part because of his
relationship with Russia. Do you know how far back that goes?” [CNN, 12/11/16]
TILLERSON PROMISED LITTLE CHANGE FROM POLICIES OF PREDECESSOR
Tillerson Pledged Only To Make Slight Changes In Exxon’s Approach From Former CEO Lee Raymond
2006: Rex Tillerson Said He Doesn’t Plan To Make Radical Changes To The Way Exxon Mobil Operates.
According to the Dallas Morning News, “Mr. Tillerson made it clear he doesn't plan radical changes to the company's way of
doing business. ‘Simply put, it works,’ he said. He said the straightforward way of doing business is ‘an approach we don't
intend to change. We don't need to. We don't incur the cost ... of refocusing our organization every few years on a new set of
priorities.’” [Dallas Morning News, 3/9/06]
2006: Rex Tillerson On How Exxon Will Change Under His Leadership: “The Only Thing I've Said To People Will
Change, Maybe, Is The Management Style, The Way I Communicate.” According to the New York Times, “With 30
years at Exxon, Mr. Tillerson has taken over the company at a time when the oil industry faces formidable new challenges.
Not since the 1980's has there been as much talk about energy costs and the nation's dependence on oil. After nearly two years
of high energy prices, oil companies are facing public discontent at $2.50-a-gallon gasoline and political pressure over the
companies' record profits. Mr. Tillerson said the situation offered him an opportunity to better explain his company's position.
‘The only thing I've said to people will change, maybe, is the management style, the way I communicate,’ Mr. Tillerson said.
‘We're all individuals. Lee Raymond is Lee Raymond. He has his style. I am Rex Tillerson and I have my style.’” [New York
Times, 3/30/06]
Tillerson Was Perceived As Having A Less Confrontational Style Than Lee Raymond…
2005: Investment Analyst David Spika Predicted That Rex Tillerson Would Be “A Little More Investor-Friendly In
His Relationships With The Street And With Investors” Than The Previous Exxon CEO. According to the Dallas
Morning News, “Exxon Mobil Corp. said Thursday that chairman and chief executive Lee Raymond plans to retire at year's
end, concluding a nearly 13-year reign for one of the global oil industry's most prominent leaders. Mr. Raymond, 66, is
expected to hand over control of the Irving-based oil giant to president Rex Tillerson, a 53-year-old Wichita Falls native who
climbed up in the company over three decades. […] Executives have said that the company won't chase production growth
at the expense of profitability. ‘Tillerson's the kind of guy that will continue to steer the ship in that direction,’ said David
Spika, a vice president at Dallas-based Westwood Holdings Group, which manages $4 billion, including some Exxon Mobil
shares. ‘He'll be a little more investor-friendly in his relationships with the Street and with investors.’ Mr. Tillerson's time at
Exxon includes posts overseeing operations in Russia and the Middle East, areas considered vital to the company's long-term
growth.” [Dallas Morning News, 8/5/05]
96

… But As Essentially Maintaining His Policies And Corporate Culture
The Economist Predicted Rex Tillerson’s Succession As CEO Of ExxonMobil From Lee Raymond Did Not Signal
A Shift In Exxon’s Corporate Culture. According to the Economist, “It would be nice to believe that Mr Tillerson is just
the man to transform Exxon into a gentler giant. After all, other successors of famously crusty chief executives--GE's Jeffrey
Immelt and Jack Welch come to mind--have tried to soften their firms' message without sacrificing profits. As even its rivals
concede, Exx-on has one of the best records in the industry on health and environmental issues. And Exxon's bureau-cracy
appears to have softened the edges of Mr Raymond's extreme views of late: the firm's advertising now acknowledges that
climate change is real and warrants action, and Exxon has given$100m to Stanford University to develop new low-carbon
technologies. So will Mr Tillerson's arrival mark a clean break with the Raymond era? Don't count on it. He is, after all, a
company man raised in Exxon's self-confident culture. He comes from the exploration and production division, which
accounts for most of the firm's profits--and most of its swagger. Lee Raymond's legacy is probably safe in Rex Tillerson's
hands. But whether that is still a good thing for Exxon and its shareholders remains to be seen.” [Economist, 12/24/05]
2006: Sylvia Pfeifer Of The Sunday Telegraph Said While “There Seems Little Difference In The Strategic Outlook
Between Tillerson And [Former Exxonmobil CEO Lee] Raymond, There Is A Notable Difference In Style.”
According to the Sunday Telegraph, “If there seems little difference in the strategic outlook between Tillerson and Raymond,
there is a notable difference in style. Raymond, who was nothing if not adversarial, became a lightning rod for environmentalists
by challenging the scientific evidence for global warming.” [Sunday Telegraph, 8/27/06]
2006: Fadel Gheit, Industry Analyst Downplayed The Difference Between Rex Tillson And His Predecessor,
Explaining, “It's The Same Old Wine In A New Bottle.” According to the New York Times, “To Fadel Gheit, a
longtime industry analyst at Oppenheimer & Company in New York, Mr. Tillerson certainly presents a kinder, gentler face for
Exxon. But in the end, Mr. Gheit cautioned, do not expect much difference between Mr. Tillerson and Mr. Raymond. ‘It's the
same old wine in a new bottle,’ he said. ‘You can't expect a company this size to change on a dime, but you might see changes
in how it projects its image to the public, to its clients.’ ‘Lee was impatient,’ he added. ‘Rex is firm, but with a smile.’” [New
York Times, 3/30/06]
Shareholder Relations
2006: TILLERSON DEFENDED A $357 MILLION EXXON COMPENSATION
PACKAGE FOR FORMER CEO LEE RAYMOND
2006: Rex Tillerson Defended The Compensation Package Of Outgoing Exxon Mobil CEO Lee Raymond To
Company Stockholders, Saying Raymond Deserved The $357 Million Retirement Package He Received. According
to Newsday, “ExxonMobil Corp. stockholders yesterday voted down resolutions calling on the world's largest oil company to
change polices on gay rights, climate change and executive pay. A proposal to add sexual orientation to the company's
employee anti-discrimination policy received almost 35 percent support in balloting at the company's annual shareholders
meeting in Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent of votes. The
company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions and already
prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee Raymond, saying
Raymond deserved the $357 million retirement package he received in January because he delivered record profits, and ‘led
this company through a lot of different business environments. We are clearly positioned better than our competitors, and you
have to give him credit.’” [Newsday, 6/1/06]
2006: Rex Tillerson On Exxon Mobil’s Giant Retirement Package To Outgoing CEO Lee Raymond: “I Don't Have
Any Regrets.” According to the Dallas Morning News, “Exxon Mobil Corp. shareholders showed their frustration
Wednesday with the giant retirement package given to former chief executive Lee Raymond. Only 79 percent of shareholders
of the world's largest public company voted for this year's slate of board members, who decide how much to pay executives.
For the last two years, the Exxon boards were elected by about 97 percent. And, for the first time ever, a shareholder
proposal received a majority of votes, at 52.2 percent. The proposal: It should take a majority of votes to elect board members
rather than just one yes vote. Current chief executive Rex Tillerson said the board will consider the proposal, but, on Mr.
Raymond's retirement pay, he said: ‘I don't have any regrets.’” [Dallas Morning News, 6/1/06]
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Tillerson Called Criticism of Raymond’s Package a “Distraction”
Rex Tillerson Called Discussion Over Whether Former Exxon CEO’s $400 Million Pay During His Final Year Was
Excessive A “Distraction.” According to NBC’s Today Show, “LAUER: Per--perhaps the poster child for all of this, and
especially in the public relations side of this, was the former CEO of ExxonMobil, Lee Raymond, who left the company I
think about a year ago, and according to the New York Times in his final year was paid something in the neighborhood of
$400 million. Is that an appropriate amount? Mr. TILLERSON: Well, it's a large amount of money, there's no question about
it. It comes at a time with these high prices where obviously it has drawn a lot of attention. I would say that that number's
been talked about in a number of different ways and involves a lot of deferred compensation which is still out in the future
yet--yet to be given to him. LAUER: But you understand when a family pulls up to the pump and they're seeing 60 cents more
this month... Mr. TILLERSON: And I--I do. LAUER: ...and they see the headline $400 million pay package, that--that rankles
them? Mr. TILLERSON: I do understand that. And it's--it has created a real distraction, I think, in this high-price
environment to dealing with the fundamental issues of why we have the high prices. That--that compensation is determined by
a committee of independent directors of the corporation who are responsible to the shareholders and the management have
no input to those packages.” [NBC’s Today Show, 5/3/06]
2006: UNDER TILLERSON, EXXON OPPOSED A STOCKHOLDER PROPOSAL TO
CREATE AN LGBT ANTI-DISCRIMINATION POLICY
2006: ExxonMobil Opposed A Stockholder Resolution Calling On The Company To Add Sexual Orientation To Its
Employee Anti-Discrimination Policy, Saying The Company Already Prohibited All Forms Of Discrimination.
According to Newsday, “ExxonMobil Corp. stockholders yesterday voted down resolutions calling on the world's largest oil
company to change polices on gay rights, climate change and executive pay. A proposal to add sexual orientation to the
company's employee anti-discrimination policy received almost 35 percent support in balloting at the company's annual
shareholders meeting in Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent
of votes. The company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions
and already prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee
Raymond, saying Raymond deserved the $357 million retirement package he received in January because he delivered record
profits, and ‘led this company through a lot of different business environments. We are clearly positioned better than our
competitors, and you have to give him credit.’” [Newsday, 6/1/06]
2006: ExxonMobil Corp. Stockholders Voted Down Resolutions Calling On The Company To Add Sexual
Orientation To The Company's Employee Anti-Discrimination Policy. According to Newsday, “ExxonMobil
Corp. stockholders yesterday voted down resolutions calling on the world's largest oil company to change polices on
gay rights, climate change and executive pay. A proposal to add sexual orientation to the company's employee antidiscrimination
policy received almost 35 percent support in balloting at the company's annual shareholders meeting in
Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent of votes. The
company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions and
already prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee
Raymond, saying Raymond deserved the $357 million retirement package he received in January because he delivered
record profits, and ‘led this company through a lot of different business environments. We are clearly positioned
better than our competitors, and you have to give him credit.’” [Newsday, 6/1/06]
2008, 2013 & 2016: EXXON SHAREHOLDERS ATTEMPTED TO SPLIT THE EXXON
CHAIRMAN AND CEO POSITION HELD BY TILLERSON INTO TWO POSITIONS
2008: Exxon Mobil Shareholders Wanted To Break Up The Dual Board Chairman And CEO Positions Held By Rex
Tillerson. According to Platts Oilgram News, “ExxonMobil shareholders said April 23 they anticipate enough momentum at
ExxonMobil's May 28 annual meeting to split the company's board chairman and CEO positions, adding that the combined
post now held by Rex Tillerson jeopardizes the company's long-term standing. Maryland State Treasurer Nancy Kopp said on
an April 23 conference call that the current board structure puts ExxonMobil at ‘significant financial risk’ and questioned if the
oil major is prepared "for the enormous changes that are looming before us" in the realm of climate change.” [Platts Oilgram
News, 4/24/08]
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Shareholders Said The CEO Also Serving As Chairman Of The Board Was Holding The Company Back
From Addressing Climate Change Concerns. According to Platts Oilgram News “Maryland State Treasurer Nancy
Kopp said on an April 23 conference call that the current board structure puts ExxonMobil at ‘significant financial
risk’ and questioned if the oil major is prepared ‘for the enormous changes that are looming before us’ in the realm of
climate change. Shareholders said the company has held back from pressing ahead on climate change, a corporate
policy reflected by the CEO that would not necessarily be backed by an independent chairman.” [Platts Oilgram
News, 4/24/08]
Members Of The Rockefeller Family Joined The Fight To Split The Chairman And CEO Jobs At Exxon Mobil.
According to the Dallas Morning News, “Members of the Rockefeller family want Exxon Mobil Corp. to split the chairman
and chief executive jobs, lending a powerful name to a long-standing debate among investors. Members of the family that
founded Exxon's predecessor company, Standard Oil, will hold a news conference Wednesday to explain their concerns. The
Rockefellers are no longer among Exxon's top shareholders, and a spokesman said the family members are calculating the size
of their stake. ‘After years of working behind the scenes to encourage Exxon's management to approach its industry challenges
in new ways, members of the Rockefeller family will publicly explain the concerns held by multiple generations of their family,’
the family members said Monday in a news release. Exxon shareholders will vote May 28 on a resolution to split the top jobs.
Last year, 40 percent of shares voted to separate the chairman and CEO positions, held by Rex Tillerson.” [Dallas Morning
News, 4/29/08]
The fight to split up Rex Tillerson’s dual role as chairman and CEO of Exxon Mobil received 39.5% shareholder
vote. According to the Daily Telegraph, “EXXONMOBIL chairman and chief executive Rex Tillerson has survived an
attempt by descendants of founder John D Rockefeller to separate his dual roles at the oil giant. Just 39.5pc of shareholders
voted in favour of the resolution, which was aimed at stripping Mr Tillerson of his dual role, in part because of the company's
alleged unwillingness to invest in green energy alternatives to oil. The shareholder rebels, led by the founder's greatgranddaughter
Neva Rockefeller Goodwin, needed a simple majority for their proposal to succeed.” [Daily Telegraph,
5/29/08]
2013: 35% of ExxonMobil Shareholders Voted To Strip Rex Tillerson Of His Board Chairmanship. According to the
Globe And Mail, “Exxon Mobil Corp.’s chief executive has joined JPMorgan Chase & Co. boss Jamie Dimon in the
comfortable chairman survivors’ lounge. About 35 per cent of the oil giant’s shareholders wanted to strip Rex Tillerson,
pictured, of his board chairmanship - not enough to threaten his grip on both roles. Still, that’s more than voted against the
JPMorgan boss. While today’s bigwigs look se-cure, the growing movement to separate roles means they could be the last of
their corporate kind.” [Globe And Mail, 5/30/13]
2016: The Guardian: Rex Tillerson “Suffered An Investor Backlash Over His Current Position As Both Chairman
And CEO.” According to the Guardian, “Tillerson, who was paid $23.4m last year, also suffered an investor backlash over his
current position as both chairman and CEO. Some 38.8% of investors voted for a resolution asking that the company appoint
an independent chairman when Tillerson stands down. He is due to retire before his 65th birthday, in March 2017.”
[Guardian, 5/26/16]
2011: TILLERSON TOLD SHAREHOLDERS TO OPPOSE A PROPOSAL FORCING
EXXON TO REPORT ON THE ENVIRONMENTAL IMPACT OF ITS NATURAL
GAS DRILLING
Rex Tillerson Urged Shareholders To Vote Against A Failed Proposal For Exxon To Report On The Environmental
Impact Of Natural Gas Drilling. According to Dallas Morning News, “About 26 percent of the shares that voted in the
meeting supported a proposal for Exxon to report on the environmental impact of natural gas drilling. The proposal states
that any environmental impact and increased regulatory scrutiny could threaten Exxon’s ability to drill. The Exxon board, led
by Tillerson, recommended that shareholders vote against the proposal. None of the eight shareholder proposals won a
majority of votes.” [Dallas Morning News, 5/26/11]
2011: TILLERSON OPPOSED A SHAREHOLDER PROPOSAL ALLOWING
SHAREHOLDERS A SAY IN EXXON’S POLITICAL CONTRIBUTIONS
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During A Shareholders Meeting, Rex Tillerson On Behalf Of The Board, Rejected A Proposal That Would Allow
Shareholders To Have More Of A Say In Exxon’s Political Contributions Allowed Under Citizens United. According
to Fair Disclosure, “PATRICIA DALY: You know that Citizens United now allows for unlimited financing and participation
for companies in the electoral process in our country. I can summarize Mr. Monks here by saying imagine what will happen to
the right of individual citizens and the basis of our right of freedom and to participate in our government when companies can
take over that process. It is essential to the integrity of democracy in America for the public to be informed on the course of
financing of political dialogue and if we as involved and interested owners cannot hold Exxon accountable for how company
funds are spend on politics, who can? Thank you for your time. REX TILLERSON: Thank you, Sister Pat. The board
recommends a vote against this proposal as outlined on page 59 of the proxy statement. The next share holder proposal calls
for a report on political contributions and is shown on pages 59 and 60 of the proxy statement. I understand that Ms. Michelle
Miller will present the proposal? Ms. Miller?” [Fair Disclosure, 5/25/11]
Rex Tillerson, On Behalf Of The Board Of Exxon, Rejected A Shareholder Proposal That Would Require
“Complete Disclosure” Of The Business’ Political Spending, “Including Payments To Trade Associations And
Other Tax Exempt Organizations For Political Purposes.” According to Fair Disclosure, “MICHELLE MILLER,
SHAREHOLDER: Disclosure is consistent with public policy in the best interest of the Company and its shareholders and
critical for the compliance with federal ethics laws. Moreover, the Supreme Court's citizens united decision recognized the
importance of political spending disclosure for shareholders when it said disclosures permits citizens and shareholders to react
to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and
give proper weight to different speakers and messages. […] Our proposal simply protects the Company and its long term
shareholders from corporate decision makings that could result in a similar reputational risk. The proposal asks the Company
to disclose all of its political spending, including payments to trade associations and other tax exempt organizations for
political purposes. This would bring our company in line with a growing number of leading companies including Aetna,
American Electric Power and Microsoft that support political disclosure and accountability and presents its information on
their website. The Company's board and its shareholders need complete disclosure to be -- to be fully able to evaluate the
political use of its corporate assets. Failure to do so could result in public embarrassments. Thus, we urge your support for this
critical governance reform. Thank you. REX TILLERSON: Thank you Ms. Miller. The board recommends a vote against this
proposal as outlined on pages 60 and 61 of the proxy statement.” [Fair Disclosure, 5/25/11]
2012: TILLERSON DEFEATED A SHAREHOLDER ATTEMPT TO ALTER HIS
EXECUTIVE COMPENSATION
2012: Rex Tillerson’s Pay Package Was Targeted By ExxonMobil Shareholders Who Wanted To Tie Executive Pay
To Specific Financial Goals For The Company. According to the Dallas Morning News, “Exxon Mobil Corp.’s executive
compensation model is under attack again by some shareholder groups. The company held a conference call Wednesday to
address concerns that chief executive Rex Tillerson’s $34.9 million pay package last year should have been more strongly tied
to specific financial goals. Officials with the Irving oil giant said board members have declined to use a formulaic system
because Exxon is so large and its projects take so long to complete. Instead of tying bonuses to one or two financial metrics,
they said, bonuses are based on a host of goals tailored to each executive. ‘Let’s make sure the people who run this company
are standing in the shoes of shareholders,’ said David Rosenthal, vice president of investor relations.” [Dallas Morning News,
5/17/12]
Oil Spills
LACK OF INVESTMENT IN DISASTER PREPAREDNESS UNDER TILLERSON
Private Empire: Under Tillerson’s Leadership, Exxon Placed No Significant Investment In Disaster Preparedness
And Maintained Accident Response Plan Prepared By The Same Contractor As BP. According to Private Empire:
ExxonMobil and American Power, “Tillerson could hardly reject the criticism about preparedness. Under his leadership,
ExxonMobil had not invested in accident response capabilities in proportion to the new risks created by deep-water drilling.
The corporation was not especially active in the Gulf, but it was moving to increase its presence, and it pledged preparedness
in regulatory filings. The costs of preparing aggressively for a rare blowout such as the Deepwater Horizon’ s-acquiring and
positioning adequate equipment, rehearsing and planning to the same level of precision that the corporation brought to drilling
operations-might be high, but they were far from prohibitive. The record showed that ExxonMobil had not made these
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investments nor urged that others in the industry do so. ‘Your [accident response] plan is written by the same contractor that
BP’s is,’ Bart Stupak, a Michigan congressman, reminded Tillerson at a hearing that summer, as oil continued to pour into the
Gulf ‘So if you can’t handle 40,000 [barrels of spilled oil a day], how will you handle 166,000 per day,’ as ExxonMobil’ s plan
claimed could be managed? ‘The answer is that when these things happen, we are not well equipped to deal with them,’
Tillerson admitted.” [Private Empire: ExxonMobil and American Power, pg. 616, 2012]
DEEPWATER HORIZON SPILL
Tillerson Criticized BP’s Handling Of The Deepwater Horizon Spill
2010: Rex Tillerson On Efforts To Contain The BP Oil Spill Well: “It Wasn’t Evident To Me That (During The [BP
Oil Spill]) That Process Was Working Very Well.” According to Platts Oilgram News, “ExxonMobil CEO Rex Tillerson,
appearing at a September 22 gathering of government and industry officials, questioned the way decisions were made during
the nearly five months it took to kill the BP Macondo well. Noting that ExxonMobil officials were not ‘in the room’ when
officials considered options for containing the massive oil leak, he said it appeared that the eventual decision to try a
containment cap could have been made sooner. ‘In the end, what was done to contain (the well), it’s possible it could have
been done at the beginning,’ Tillerson said. Tillerson, speaking on a panel at the Department of the Interior, said the oil and
gas industry knows how to evaluate risk and does so every time it drills an exploratory well. By contrast, it appears that
officials considering how to best kill the Macondo well moved slowly from low risk/low payoff options to the eventual high
risk/high payoff option that worked, Tillerson said. ‘We’re quite comfortable dealing with ranges of uncertainty,’ he said. ‘It
wasn’t evident to me that (during the Macondo crisis) that process was working very well.’ Tillerson spoke on a panel that
included Andrew Inglis, BP’s head of production and exploration, who was a key member of the team that developed the
containment cap that stopped the flow after it was installed on July 15.” [Platts Oilgram News, 9/23/10]
Tillerson Suggested the Deepwater Blowout and Subsequent Spill Would Not Have Occurred If
Deepwater Horizon Had Been An ExxonMobil Rig Instead of BP
Rex Tillerson “Said Exxon’s Engineers Knew That One Of BP’s Initial Efforts To Stem The Oil Flowing From The
Ruptured Macondo Well - By Building A Containment Dome - ‘Wasn’t Going To Work’” According to City A.M.,
“EXXON CHIEF CLAIMS BP LOST TIME BP lost valuable time at the height of its devastating accident in the Gulf of
Mexico last year pursuing solutions to contain the oil spill that were never going to succeed, the chief executive of
ExxonMobil has claimed. In a sharp criticism of the handling of the disaster, Rex Tillerson said Exxon’s engineers knew that
one of BP’s initial efforts to stem the oil flowing from the ruptured Macondo well - by building a containment dome - ‘wasn’t
going to work’.” [City A.M., 4/20/11]
Rex Tillerson Said Before A Capitol Hill Hearing On The BP Oil Spill That ExxonMobil “Would Not Have Drilled
The Well The Way [BP] Did.” According to Daily News, “BP’s Big Oil rivals tossed it under the tanker truck yesterday
while seeking to cover their own highly profitable backsides at a Capitol Hill hearing. ‘We would not have drilled the well the
way they did,’ said Rex Tillerson, the silver-haired and unflappable chairman and chief executive of ExxonMobil. ‘It was not a
well we would have drilled,’ said Marvin Odum, president of Shell Oil. BP’s deadly blowout of the Deepwater Horizon well
was ‘preventable,’ said Chevron chairman John Watson, whose views were backed by ConocoPhillips chairman John Mulva.”
[Daily News, 6/16/10]
Rex Tillerson Told A Gathering Of Government And Industry Officials That The BP Oil Spill Well Might Have
Been Contained Faster If Exxonmobil Officials Were Part Of The Containment Process. According to Platts Oilgram
News, “ExxonMobil CEO Rex Tillerson, appearing at a September 22 gathering of government and industry officials,
questioned the way decisions were made during the nearly five months it took to kill the BP Macondo well. Noting that
ExxonMobil officials were not ‘in the room’ when officials considered options for containing the massive oil leak, he said it
appeared that the eventual decision to try a containment cap could have been made sooner. ‘In the end, what was done to
contain (the well), it’s possible it could have been done at the beginning,’ Tillerson said. Tillerson, speaking on a panel at the
Department of the Interior, said the oil and gas industry knows how to evaluate risk and does so every time it drills an
exploratory well. By contrast, it appears that officials considering how to best kill the Macondo well moved slowly from low
risk/low payoff options to the eventual high risk/high payoff option that worked, Tillerson said. ‘We’re quite comfortable
dealing with ranges of uncertainty,’ he said. ‘It wasn’t evident to me that (during the Macondo crisis) that process was working
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very well.’ Tillerson spoke on a panel that included Andrew Inglis, BP’s head of production and exploration, who was a key
member of the team that developed the containment cap that stopped the flow after it was installed on July 15.” [Platts
Oilgram News, 9/23/10]
Tillerson’s Criticism Of BP Strained The Exxon’s Relationship With The Company
Rex Tillerson Strained ExxonMobil’s Relationship With BP By Becoming A Leading Industry Spokesman For Safer
Drilling Practices Following The BP Oil Spill. According to Natural Gas Week, “The difficult logistics are a key reason
that Exxon, Imperial and BP recently formed a joint venture to explore and develop their High Arctic holdings, Rolheiser
explained. The news came as a surprise as Exxon and BP hadn’t been the best of partners in recent years. The two companies
had been at odds since 2005 over problems with the Thunder Horse platform in the Gulf of Mexico, then in 2006 over BP’s
maintenance of gathering and pipeline systems on Alaska’s North Slope. The relationship had become even more strained
following the Macondo blowout in April. Exxon Chief Executive Rex Tillerson has evolved into a leading spokesman for safer
industry drilling and production practices, while BP has been excluded from some industry-based activities such as the recently
formed Marine Spill Containment Co. to handle seabed blowouts in the Gulf of Mexico.” [Natural Gas Week, 8/9/10]
Tillerson Opposed Industry Regulation Efforts Following The Deepwater Horizon Spill
Tillerson Cast BP’s Practices That Led to the Deepwater Blowout As An Industry Aberration
Following BP’s Deepwater Horizon Disaster, Tillerson Attacked BP’s Practices As Out Of The Norm In An Effort
To Avoid “Intensive New Regulation” Due To BP’s Failure. According to Private Empire: ExxonMobil and American Power,
s the oil poured into the Gulf, Tillerson pushed ExxonMobil’s talking points into Washington’s political ecosystem. He
characterized the accident as a ‘dramatic departure from the industry norm in deep-water drilling.’ ExxonMobil would never
have made the mistakes BP made, he said. Moreover, the recklessness of BP’s operation should not catalyze intensive new
regulation because BP’s failure was so unusual.” [Private Empire: ExxonMobil and American Power, pg. 613, 2012]
Expressed Concern About Potential Taxes or Royalties Imposed On The Industry In Response To The BP Spill
2010: Rex Tillerson Told Reporters That He Was “Concerned” About “Policy Decisions That Are Being Made” In
The U.S. That Could Lead To Higher Energy Prices Such As Tax Increases Or Higher Royalty Rates For
Deepwater Exploration. According to National Post's Financial Post & Fp Investing, “The head of Exxon Mobil Corp., the
largest U.S. oil company, said yesterday that rising energy prices could damage the nascent U.S. economic recovery and
misguided energy policy could worsen the situation. ‘It does concern me that energy prices not become an obstacle to the
economy recovery,’ Exxon chief executive Rex Tillerson told reporters after a speech to a Houston civic group. ‘That’s why
I’m concerned about some of the policy decisions that are made in this country that could lead to higher prices,’ he said. U.S.
policies leading to tax increases or higher royalty rates for deepwater exploration will discourage companies from investing in
exploration pro-jects and result in higher prices, he said.” [National Post's Financial Post & Fp Investing, 4/20/10]
2010: Rex Tillerson On The BP Oil Spill: “This Incident Represents A Dramatic Departure From Industry Norms In
Deepwater Drilling […] We Do Not Proceed With Operations If We Cannot Do So Safely.” According to The
Guardian, “ExxonMobil would have been as powerless as BP to stop the Gulf of Mexico gusher, the chief of the world’s
biggest oil company told Congress yesterday in a contentious hearing into the oil spill. […] But the other oil executives were
blocked in their attempts to cast the spill as a rare event directly linked to shoddy safety procedures by BP when it emerged
they had virtually identical spill response plans. No company could have averted a disaster in the case of a blowout like the one
suffered by BP, it turned out. […] Tillerson and others said their companies would have stopped drilling when confronted
with the problems in well control experienced on the Deepwater Horizon. ‘This incident represents a dramatic departure from
industry norms in deepwater drilling,’ he said. ‘We do not proceed with operations if we cannot do so safely.’” [The Guardian,
6/16/10]
Tillerson Maintained ExxonMobil Would Not Alter Its Approach to Gulf Deepwater Drilling Following
Spill
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2010: Rex Tillerson Said Exxon Mobil Would Not Alter Its Approach To Deep-Water Drilling In The Gulf Of
Mexico In The Wake Of The Recent BP Oil Spill. According to The Dallas Morning News, “Exxon Mobil Corp. won’t
change its approach to deep-water drilling in the Gulf of Mexico or elsewhere in the wake of the BP accident, chairman and
chief executive Rex Tillerson said Wednesday. ‘There have been more than 14,000 deep-water wells drilled, the vast majority
of them successfully,’ Tillerson said after his company’s annual meeting in Dallas. Until the facts about BP’s actions before the
fatal accident and devastating oil spill are fully investigated, it’s too early to say what effect it will have on the industry, he said.
Irving-based Exxon has a single deep-water drilling project in the Gulf of Mexico, and it is on hold while regulators sort out
the BP mess. Tillerson said he’s talked directly to BP CEO Tony Hayward and has lent equipment and consulting expertise to
BP but isn’t involved in any decision-making.” [The Dallas Morning News, 5/27/10]
Tillerson Called “Regaining The Confidence And Trust Of The Public” Most Difficult Task Faced By Industry In Aftermath
2010: Rex Tillerson Said “The Most Difficult Challenge” Faced By The Oil Industry After The BP Spill Was
“Regaining The Confidence And Trust Of The Public, The American People, And […] Government Regulators.”
According to The New York Times, “For decades, the oil industry had showcased and developed its latest technology in the
Gulf of Mexico. But the spill now casts a pall over offshore oil and gas operations, just as the industry thought it had snatched
a major victory from the administration, which agreed to expand oil and gas drilling earlier this year. Rex Tillerson, the
chairman and chief executive of ExxonMobil, admitted last week that the industry faced a huge challenge. ‘The most difficult
challenge confronting the whole industry at this point is regaining the confidence and trust of the public, the American people,
and regaining the confidence and trust of the government regulators and the people who oversee our activities out there,’ he
said in response to questions from reporters after a shareholder meeting.” [The New York Times, 6/3/10]
Obama Told Tillerson Privately Helping To Resolve BP Spill And Prevent Others Was A Matter Of Duty
And In The Industry’s Financial Interest
According To An Official, At A Private Meeting With Business Executives President Obama Bluntly Told Rex
Tillerson That He Expected The Oil Industry To Use Its Engineering Talents To Fix The BP Oil Spill And Prevent
Others. According to The Washington Post, “The president has pressured other oil companies to step up. At a May 3 dinner
at the White House with business executives, says one official who was there, Obama bluntly told Exxon Mobil Chairman Rex
Tillerson that he expected the entire petroleum industry to dedicate its engineering talent to fixing the spill and preventing
others. It is a question of duty, Obama told him -- and also of the industry’s own financial interest.” [The Washington Post,
6/6/10]
TILLERSON TOLD CONGRESS OIL COMPANIES WERE NOT EQUIPPED TO
HANDLE AN EVENT SUCH AS THE DEEPWATER HORIZON SPILL
2010: Rex Tillerson Told Congress That Oil Companies “Are Not Very Well Equipped To Handle” Events Like The
BP Oil Spill In The Rare Occasions That They Occur. According to The Guardian, “ExxonMobil would have been as
powerless as BP to stop the Gulf of Mexico gusher, the chief of the world’s biggest oil company told Congress yesterday in a
contentious hearing into the oil spill. […] But the other oil executives were blocked in their attempts to cast the spill as a rare
event directly linked to shoddy safety procedures by BP when it emerged they had virtually identical spill response plans. No
company could have averted a disaster in the case of a blowout like the one suffered by BP, it turned out. ‘When these things
happen we are not very well equipped to handle them,’ said Rex Tillerson, chairman and chief executive of Exxon. ‘There is
no response capability that will guarantee you will never have an impact. It does not exist.’” [The Guardian, 6/16/10]
TILLERSON ESTABLISHED A JOINT DEEPWATER SPILL RAPID RESPONSE
SYSTEM FOLLOWING DEEPWATER HORIZON SPILL
2010: Exxonmobil Announced That Along With Chevron, ConocoPhillips and Royal Dutch Shell They Would
Commit $1 Billion To Create A Rapid-Response System To Deal With Deepwater Oil Spills In The Gulf Of Mexico.
According to the New York Times, “Four of the world’s biggest oil companies said on Wednesday that they were committing
$1 billion to create a rapid-response system to deal with deepwater oil spills in the Gulf of Mexico, seeking to restore public
confidence in the industry after the BP disaster painfully exposed how unprepared the industry was for a major accident. […]
The plan -- which was put together by Exxon Mobil, Chevron, ConocoPhillips and Royal Dutch Shell -- in-corporates many
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of the lessons that BP was forced to learn the hard way in trying to cap a gushing oil well 5,000 feet below the ocean’s surface.
The four companies said their initiative would seek to include all the companies involved in offshore drilling in the gulf,
including BP.” [New York Times, 7/22/10]
Rex Tillerson Said Was “Doubtful We Will Ever Use It” But It Helped “The Government And The Public To Be
Confident To Allow Us To Get Back To Work.” “According to the New York Times, “The plan -- which was put
together by Exxon Mobil, Chevron, ConocoPhillips and Royal Dutch Shell -- in-corporates many of the lessons that BP was
forced to learn the hard way in trying to cap a gushing oil well 5,000 feet below the ocean’s surface. The four companies said
their initiative would seek to include all the companies involved in offshore drilling in the gulf, including BP. Their initial
financing of $250 million each will be used to build a set of containment equipment, like underwater systems and pipelines,
that will be able to deal with a variety of deepwater problems and can be deployed rapidly in the event of a spill. The partners
said it would take six months to get all the elements in place. The companies expect the sys-tem will be able to contain spills in
water as deep as 10,000 feet and capture up to 100,000 barrels of oil a day, although that capacity could be increased if needed.
‘‘It’s doubtful we will ever use it, but this is a risk-management gap we need to fill in order for the government and the public
to be confident to allow us to get back to work,’’ Rex W. Tillerson, the chairman of Exxon, said in an interview.” [New York
Times, 7/22/10]
NIGERIAN OIL SPILL
An Exxon Oil Pipeline Ruptured, Spilling A Million Gallons Of Oil In Coastal Areas Of Eastern Nigeria, Just Ten
Days After The Deepwater Horizon Disaster. According to Private Empire: ExxonMobil and American Power, “Just ten days
after the Deepwater Horizon exploded, a ruptured ExxonMobil pipeline dumped about a million gallons of oil in coastal areas
of eastern Nigeria, soiling shorelines dotted by impoverished seaside villages. The affected area lay far from American
television news bureaus, and its kidnapping gangs made it a risky place to travel in any event. The spill barely registered. Not
all accidents can be prevented, Tillerson and ExxonMobil ‘s lobbyists acknowledged.” [Private Empire: ExxonMobil and
American Power, pg. 614, 2012]
Defense of Record Profits
UNDER TILLERSON, EXXON MADE RECORD PROFITS
Exxon Earned More In Profits Than Any Publicly Traded Corporation In America Each Year Of Tillerson’s Tenure
Through 2010. According to Private Empire: ExxonMobil and American Power, “ExxonMobil earned $30.5 billion in profits
during 2010, short of the Tillerson-overseen record of 2008,but stunning nonetheless. The corporation had earned more profit
than any publicly traded corporation in America in each year of Tillerson’s reign so far.” [Private Empire: ExxonMobil and
American Power, pg. 595, 2012]
January, 2006: Exxon Mobil Reported The Biggest Profit In Corporate History After Tax For 2005. According to the
Independent, “The oil giant Exxon Mobil reported the biggest profit in corporate history yesterday - $36.1bn (pounds 20bn)
after tax for 2005 - on the back of soaring prices for crude oil. The company's turnover last year of $371bn, up from $298bn
in 2004, would position it among the world's biggest economies. The figure would probably make Exxon's revenues
equivalent to the 17th biggest economy, just behind Russia but well ahead of Taiwan or Sweden. The profit figure after tax of
$36.1bn benefited from an astonishing $10.7bn in the fourth quarter - compared with $25.3bn for the whole of 2004. Before
tax, profits came in at $59.4bn, from $41.2bn previously.” [Independent (UK), 1/31/06]
TILLERSON REJECTED THE NOTION THAT THE OIL AND GAS INDUSTRY
HAD A RESPONSIBILITY TO CURB PROFITS AMID HIGH COSTS
Rex Tillerson On Whether Exxon Would Lower Profits To Help Out Average Americans: “That’s Not The
Business. We're In The Business To Make Money.” According to NBC’s Today Show, “LAUER: And would
ExxonMobil be willing to lower profits over the summer to help out in this time of need and crisis, as it's been described? Mr.
TILLERSON: Well, as you pointed out, we work for the shareholder. And the investors who own our stock are over two
million individual Americans and a lot of pension plans, a lot of teacher retirement plans, and our job is to go out and make
the most money for their--those people so that their pensions are secure, so that they see the benefits of our work. LAUER:
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Which is, that's a no. Mr. TILLERSON: Well, that's not the business. We're in the business to make money.” [NBC’s Today
Show, 5/3/06]
Rex Tillerson Refused To Say Whether Exxon Had A Responsibility To Curb Profits While Individual Consumers
Were Being Impacted By High Prices. According to NBC’s Today Show, “LAUER: You--you have a responsibility to your
shareholders. You're a public company. And I think in an-nouncing your profits last week you also announced a 32 cent per
share dividend. So you are meeting your responsibility to your shareholders. The question I have for you, Mr. Tillerson, is--
does a company like ExxonMobil have any responsibility to the other people in the general public at a time when individual
con-sumers are being hurt by gas prices, companies, entire industries? Airline industry, the--the automobile industry. Does
ExxonMobil have any responsibility to curb profits and help out those people? Mr. TILLERSON: Well, I think our
responsibility, Matt, is to ensure that people have the energy they need to go about their daily lives, to continue to support the
economy, the economic growth in this country and the world over. And to do that you have to have energy. Now I
understand that when people pull up to the pump, they don't like the price. It's creating a lot of problems for people's
household budgets. Your intro segment showed how people are having to deal with that. And I understand it's very difficult
for a lot of families. But the alternative of not having the gasoline at all or having long lines at the pump I don't think is one
that people find very attractive either.” [NBC’s Today Show, 5/3/06]
Rex Tillerson On Exxon’s Responsibility To Curb Profits To Benefit The Consumer: “The Alternative Of Not
Having The Gasoline At All Or Having Long Lines At The Pump I Don't Think Is One That People Find Very
Attractive.” According to NBC’s Today Show, “Mr. TILLERSON: Well, I think our responsibility, Matt, is to ensure that
people have the energy they need to go about their daily lives, to continue to support the economy, the economic growth
in this country and the world over. And to do that you have to have energy. Now I understand that when people pull up
to the pump, they don't like the price. It's creating a lot of problems for people's household budgets. Your intro segment
showed how people are having to deal with that. And I understand it's very difficult for a lot of families. But the
alternative of not having the gasoline at all or having long lines at the pump I don't think is one that people find very
attractive either.” [NBC’s Today Show, 5/3/06]
TILLERSON SAID THE OIL AND GAS INDUSTRY’S HIGH PROFITS WERE
JUSTIFIED
Tillerson Gave Various Reasons For Why Exxon’s Massive Profits Were Justified
Tillerson Argued People Complained About High Profits For Exxon Simply Because They Did Not Understand
The True Size And Cost Of The Business. According to Private Empire: ExxonMobil and American Power, “‘We in the media
have made a lot of the profits that ExxonMobil has made, particularly in the last couple of quarters-more than $10 billion in
profits first quarter this year; $11.68 billion in the second quarter of the year. When people, I don’t know, complain about that
to you, or say, ‘How dare you? Those profits are obscene.’ What’s your best-in brief form-what’s your best justification?’ ‘Well,
I think it has to do with the ability to understand just the size of our business. Everything we do, the numbers are very large. I
saw some­ one characterize our profits the other day in terms of $1,400 in profit per second. Well, they also need to
understand we paid $4,000 a second in taxes, and we spent $15,000 a second in cost. We spend $1 billion a day ju st running
our business. So this is a business where large numbers are just characteristic of it. . . .’” [Private Empire: ExxonMobil and
American Power, pg. 502-503, 2012]
Tillerson Insisted The Billions In Profits For Exxon Were Not Extreme When Put In Perspective. According
to Private Empire: ExxonMobil and American Power, “‘Senator Obama, he’s calling for a windfall profits tax. . . .And when
the public sees the kind of profits that the oil companies are making, and ExxonMobil in particular . . . isn’t it fair that
they wonder, ‘Why not?’’ ‘Well, I guess the question is what’s that going to solve? Are the American people going to
be better off from an energy situation because we implement a windfall profits tax? Nowhere in a windfall profits tax
do I see anything that addresses the problem. I understand that may be popular with some people because of how
they view our current-day profitability. Certainly, again, if you put our profits in perspective, because of our scale and
size, Charlie, on a unit-of-sales basis, our profits are way down the list. And so if we’re going to institute, from a
philosophic stand­ point, a windfall profit [tax] on highly successful companies, who generate high profits, you’re
going to have to go after a lot of other industries and parts of our economy. . . .’” [Private Empire: ExxonMobil and
American Power, pg. 503, 2012]
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Rex Tillerson Argued Exxon Paid A High Effective Tax Rate In Order To Justify Billions In Earnings For The Oil
Industry At The Same Time As High Prices For Consumers. According to CNBC/Dow Jones Business,
“BARTIROMO: Of course, you can understand the frustration, looking at the $35 billion in earnings at Exxonmobil last year
or the, you know, $11 billion in the three-month basis at a time that consumers are paying so much money for the price of oil.
What is your position on the windfall tax issue? TILLERSON: Well, we already are paying significantly higher taxes because of
the higher prices. Our tax payments around the world, last year, were almost $99 billion. So we pay a very high level of taxes
today. Our effective tax rate is over 41 percent. So as prices rise, governments do see increased revenues from our activities.
Now, we understand the concern people have about the price at the pump and the price of their energy or electricity and their
home heating oil. And for a lot of people that`s a -- that`s very difficult to manage and we understand that. Our response to
that is to do the things we know how to do to increase supply, increase the diversity of supply. And that means applying our
capabilities around the globe, applying the new technologies to get new sources of oil and natural gas supply that previously
we`ve not been able to bring to the market, invest heavily, invest wisely for the long term. And that`s what we`re doing. That`s
what our people are doing, all 85,000 of them, all around the world, 24 hours a day, 7 days a well, 365 days a year. That`s what
they`re focused on.” [CNBC/Dow Jones Business Video, 3/8/06]
2006: Rex Tillerson On Exxon Mobil’s Record Profits: “Our Strong Financial Results Will Continue To Allow Us To
Make Significant Long-Term Investments Required To Do Our Part In Meeting The World's Energy Needs.”
According to the LA Times, “Howard Silverblatt, Standard & Poor's senior index analyst, said Exxon's quarterly and annual
profit were record highs for a public corporation. He discounted higher quarterly numbers posted in the past by Ford Motor
Co. and AT&T Corp. because they were boosted substantially by special items. Exxon Mobil, aware that its profit could
trigger a public backlash, tried to defuse critics. ‘We recognize that consumers worldwide want and need reliable supplies of
affordable energy,’ Chairman and Chief Executive Rex Tillerson said Monday in his first earnings report since the retirement
of longtime CEO Lee Raymond. ‘Our strong financial results will continue to allow us to make significant long-term
investments required to do our part in meeting the world's energy needs.’” [LA Times, 1/31/06]
Rex Tillerson Told The Senate Finance Committee That It Cost Oil Companies $60 To $70 Per Barrel To Find New
Oil, An Estimate Three To Five Times Higher Than What Oil Experts Say. According to the Washington Post, “Exxon
Mobil chief executive Rex Tillerson said the cost of finding new oil is about $60 to $70 a barrel, an estimate three to five times
as high as what oil experts say firms pay to discover and develop new re-serves in areas such as the Gulf of Mexico. Tillerson
cautioned that because of increasing costs, that figure would rise.” [Washington Post, 5/13/11]
2006: Rex Tillerson, Asked If Exxon Mobil Would Consider Cutting Profits To Help Consumers, Said “The Profit
We Earn Is What The Market Gives Us.” According to the NY Daily News, “The new boss of ExxonMobil was
unapologetic yesterday about his company's record profits, saying its take is merely ‘what the market gives us.’ ‘We're in the
business to make money,’ said CEO Rex Tillerson, asked on NBC if he would consider cutting profits to help consumers.
‘The profit we earn is what the market gives us,’ Tillerson added, suggesting oil firms are already pumping extra cash into
public coffers with tax payments that jumped fourfold from 2002 to 2005 - while profits ballooned 300%.” [NY Daily News,
5/4/06]
2006: Rex Tillerson Defended Exxon’s Record Profits, Describing The Long-Term Profits Of The Company As
“Kind Of An Average Business.” According to the Boston Globe, “Tillerson also defended Exxon's recent record profits,
including $36 billion last year, which are prompting some congressional Democrats to call for windfall profit taxes, which
Tillerson called ‘a terrible idea’ that will deter exploration and raise prices. ‘We won't make this kind of money forever,’
Tillerson said, adding that boom-year profits are necessary to sustain long-term investments in oil exploration that can include
‘a $180 million dry hole in the Gulf of Mexico’ Exxon experienced this year. ‘If you look at it over 20 years,’ Tillerson added,
‘it's kind of an average business.’” [Boston Globe, 12/1/06]
At The Same Time, Tillerson Rejected Exxon’s Responsibility To Make Charitable Contributions
Rex Tillerson On ExxonMobil’s Responsibility To Make Charitable Contributions: “Ultimately, This Is Our
Shareholders’ Money We’re Spending…It’s Not My Money To Tithe.” According to the New Yorker, “Tillerson, who
has a rich Texas accent, talked about initiatives to support girls and women in some of the poor countries where the
corporation extracted oil. ExxonMobil, he said, was interested in exploring, on behalf of impoverished women: ‘What are the
technologies . . . that will provide them capabilities to undertake their activities in a more effective and efficient way?’ Sawyer,
Adan, Verveer, and Salbi fell into an intense discussion of female genital cutting. Adan said it was essential to ‘educate the men
and the fathers to take a decision and stand and not just pass it off, and say ‘This is a woman’s problem.’ ‘ Salbi leaned across
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Tillerson to make another point; he shifted uncomfortably. He was not asked to offer an opinion. Sawyer then asked him,
‘What is the responsibility of a multinational corporation to make the world better through charitable activity? Is it a tithe of
ten per cent? How much?’ ‘Ultimately, this is our shareholders’ money we’re spending,’ Tillerson said. ‘So it’s not my money to
tithe. It’s not the corporation’s. It’s our shareholders’.’” [New Yorker, 4/9/12]
Major Litigation
Tillerson Named As A Party In 6 Federal And State Lawsuits Which Involve ExxonMobil. Since 2005, Tillerson has
been named as the defendant in 6 federal and local lawsuits which involve lawsuits against ExxonMobil.
Details of all identified cases involving Tillerson are provided in the table below:
Case Name
Joseph
Tropiano v.
Michael Boskin
et. al.
Shirley
Dragoone v.
Michael Boskin
et. al.
Ramirez v.
Exxon Mobil
Corporation et
al
Case
Number
DC-09-
13137
Date Filed Location Party
Role
Nature
9/25/2009 298th District Court, Defendant Civil- commercial
Dallas County, Texas
dispute claim that
alleged that certain
ExxonMobil board
members had
breached their duty
and mismanaged the
companies land
leases. On 1/11/10,
it was consolidated
into case number 09-
DC-09-
12519
3:16-cv-
03111
9/17/2009 298th District Court,
Dallas County, Texas
11/7/2016 U.S. District Court,
Northern District of
Texas, Dallas
12519.
Defendant Civil- commercial
dispute claim that
alleged that certain
ExxonMobil board
members had
breached their duty
and mismanaged the
companies land
leases. On 7/20/10,
the court ruled to
dismiss the case with
prejudice.
Defendant Civil- class action
complaint alleged
that ExxonMobil and
its executives
perpetuated fraud by
inaccurately pricing
carbon. As of
12/13/2016, the case
is still pending.
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Resnik v.
Boskin et. al.
2:09-cv-
05059
10/1/2009 U.S. District Court,
New Jersey, Newark
Defendant Civil- complaint that
alleged the
defendants and
ExxonMobil violated
the Securities
Exchange Act due to
non-tax-deductible
payments to their
executive officers.
On 3/17/2011, the
court dismissed the
complaint with
prejudice.
Tilli v. Exxon-
Mobil
Corporation et.
al.
Tilli v. Exxon
Mobil Oil
Corporation
2:09-cv-
01301
3:05-cv-
02409
3/6/2009 U.S. District Court,
Eastern District of
Pennsylvania,
Philadelphia
12/2/2005 U.S. District Court,
Northern District of
Texas, Dallas
Defendant Civil- complaint
alleged that
ExxonMobil and its
executives
perpetuated fraud by
inaccurately pricing
carbon. On
11/17/2009, the
court of appeals
ruled to uphold the
ruling to dismiss case
with prejudice.
Defendant Civil- consumer civil
action complaint
filed against Exxon
and its executives.
The complaint
alleged that the
defendants
maliciously and
illegally raised gas
prices which caused
damages to the
plaintiff. On
10/27/2014, the
court of appeals
upheld the district
court’s ruling against
the plaintiff due to
failure to state a
claim.
[Public Access to Court Electronic Records, “Tillerson, Rex,” Accessed 12/13/16; Texas Court Portal, Dallas County,
“Tillerson, Rex,” Accessed 12/13/16]
EXXON VALDEZ SPILL LITIGATION
1989: Exxon Valdez Tanker Struck A Reef In Prince William Sound, Alaska And Spilled 11 Million Gallons Of Crude
Oil Into The Water. According to NPR, “On March 24, 1989, the tanker Exxon Valdez struck a reef in Prince William
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Sound, Alaska, spilling 11 million gallons of crude oil into the pristine water. At the time, it was the single biggest spill in U.S.
history.” [NPR, 3/24/15]
The 1989 Spill Stretched For 11,000 Miles Largely Because Exxon And Government Agencies Were “Ill-
Prepared” To Respond And Devastated The Community Of Cordova. According to NPR, “Because the oil
company and government agencies were ill-prepared to respond, oil from the Exxon Valdez stretched for 11,000 square
miles. It fouled beaches, destroyed fisheries and killed hundreds of thousands of birds and all kinds of sea life, including
whales and sea otters. Exxon eventually set up a voluntary program to compensate oil spill victims, and hired local
fishermen for the cleanup – including Andersen, who worked a sea otter rescue crew.[…] The disaster upended life in
Cordova for years. Fishermen were docked. Businesses went bankrupt. Drug and alcohol abuse went up, along with
reports of domestic violence and depression. The mayor committed suicide. Those paid by Exxon to work the cleanup
were jealously labeled ‘spillionaires.” [NPR, 3/24/15]
2006 – 2015: State And Federal Officials Considered Pursuing Additional Litigation Against Exxon From
Ongoing Environmental Impacts Caused By The Exxon-Valdez Spill
2006: The U.S. Justice Department Re-Opened Exxon’s 1991 Settlement, Alleging The Company Owed An Additional $92
Million For Ongoing Environmental Damage
2006: U.S. Justice Department And The State Of Alaska Re-Opened A 1991 Settlement, Claiming That Exxon Owed
An Additional $92 Million For Ongoing Environmental Damage Caused By Infamous Exxon-Valdez Spill.
According to Reuters, “More than two decades after the Exxon Valdez supertanker struck a reef and unleashed the nation’s
biggest tanker spill, a lingering legal dispute about the disaster heads back to court on Friday. At issue in a U.S. District Court
hearing in Anchorage is an unpaid $92 million claim by the U.S. Justice Department and the state of Alaska for what they
consider long-term environmental damage unexpected at the time of the grounding. The claim was made five years ago under
a special ‘reopener’ provision of the governments’ 1991 civil settlement with Exxon, in which the oil company paid $900
million.” [Reuters, 3/3/11]
Exxon’s 1991 Settlement Included A Re-Opener Clause That Allowed For Additional Claims In Case Of
Unforeseen Environmental Impacts. According to Alaska Public Media, “At issue was a provision called a ‘reopener’
clause. The government’s original 1991 settlement with Exxon, for $900-million, allowed for additional claims
in case of unforeseen environmental impacts. In 2006, the state filed for that money, citing impacts on harlequin
ducks and sea otters from oil still lingering under the surface on Alaska beaches.” [Alaska Public Media, 1/15/15]
Exxon Had Previously Paid $900 Million For A 1991 Settlement Over The Spill, But “Persisting
Environmental Impact” Including Lingering Oil Prompted Federal And State Governments To File A
Reopener Order. According to Reuters, “The claim was made five years ago under a special ‘reopener’ provision of
the governments’ 1991 civil settlement with Exxon, in which the oil company paid $900 million. That money was paid
over a decade into a trust account that funds environmental restoration projects and scientific work. But persisting
environmental impact prompted the federal and state governments to present the reopener bill to Exxon Mobil,
Exxon Corp’s successor. The money should go to projects to address unforeseen damages, including surprising
amounts of oil lingering in Prince William Sound beaches, the governments said in 2006.” [Reuters, 3/3/11]
The Government’s Civil Settlement Was Separate From A Long-Running Class Action Suit Filed By Alaska
Fisherman, Alaska Natives, And Property Owners Affected By The Exxon Valdez Spill. According to Reuters,
“The governments’ civil settlement is separate from a long-running class-action lawsuit filed by Alaska fishermen,
Alaska Natives, property owners and other individuals and groups affected by the Exxon Valdez spill. Those private
plaintiffs, totaling about 32,000, won more than $500 million in compensation through court verdicts and settlements
and a $5 billion punitive damages fine levied against Exxon in a 1994 federal trial. An appeals court cut that to $2.5
billion, and the U.S. Supreme Court in 2008 cut the punitive fine down to $507.5 million.” [Reuters, 3/3/11]
Exxon Refused To Pay, So Environmentalist Rick Steiner Filed A Motion To Compel The Company To Do So
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Exxon Argued That It Should Not Be Required To Pay More As None Of The Long-Term Impacts Were “Serious
Or Surprising” And Claimed That It Already Spent More Than $4.3 Billion On Cleanup Following The Spill.
According to Reuters, “Exxon argued in a motion filed last week that it should not pay anything more for the Valdez disaster.
No long-term impacts have been serious or surprising, so no reopener payment for unforeseen damages is justified, the
company argued. ‘In fact, the more than 20 years of intensive scrutiny of the Prince William Sound ecosystem by hundreds of
scientists confirm that Prince William Sound and the oil spill area are in good ecological shape. ‘The isolated pockets of oil
residues remaining in the Sound are so effectively sheltered that they have resisted natural environmental removal for two
decades,’ the company said in its motion. ‘The Spill reconfirmed what has long been known, that oil spills have acute dramatic
effects but that they are essentially short-term events, with some isolated consequences that may persist for many years,’ the
company’s motion said. Exxon says it has already spent $4.3 billion as a consequence of the spill, including cleanup costs and
various legal settlements, court verdicts and criminal fines.” [Reuters, 3/3/11]
2011: Exxon Refused To Pay The $91 Million Bill, So Environmental Activist Rick Steiner Filed A Motion To
Compel The Company To Do So. According to Reuters, “Exxon has not paid the bill, and the governments have yet to take
the matter to court. Now an Alaska environmentalist is seeking to persuade a federal judge to compel Exxon to pay the $92
million, plus another $23 million in interest. At stake is more than money that could be used restore a Prince William Sound
still injured by the 11 million gallon spill, said Rick Steiner, the retired University of Alaska marine science professor and
longtime Alaska activist who filed the motion to compel the payment.” [Reuters, 3/3/11]
Former Republican Alaskan Governor Frank Murkowski Supported Steiner’s Efforts To Compel Exxon To
Pay. According to Reuters, “The state and federal governments have not responded to Steiner’s efforts with any court
documents related to his motion. But one former governor, Republican Frank Murkowski, sent a letter to the court
supporting Steiner. ‘Alaska deserves closure on this issue after 22 years,’ Murkowski, whose administration made the
reopener claim in 2006, said in his letter.” [Reuters, 3/3/11]
2015: Federal And State Governments Dropped The Case, Due To A Lack Of Admissible Evidence
2015: Federal And State Prosecutors Decided To Not Pursue More Additional Damages For Ongoing
Environmental Damage Caused By The Exxon Valdez Spill. According to Alaska Public Media, “Twenty-six years of
litigation over the Exxon Valdez oil spill ended on Thursday, Oct. 15, in a federal district court in downtown Anchorage. The
state and federal governments have decided not to pursue a final $100-million from ExxonMobil over its 1989 oil spill in
Prince William Sound. It was an anticlimactic end. The hearing Thursday morning lasted all of fifteen minutes, and no
representative from Exxon spoke. Instead, Judge H. Russel Holland — who has overseen the Exxon Valdez case from the
start — asked the state and federal governments if they had anything to add to their written filing. They said no. So the judge
himself spoke. ‘I understand that some will be displeased with the government’s decision,’ he said, ‘But based upon what’s in
your report, I’m satisfied that it was the right decision.’ ‘What is clear to me is that the process has been lengthy, it’s been
extensive, it’s been expensive,’ he said.” [Alaska Public Media, 1/15/15]
The Government Determined That Sea Otters And Harlequin Duck Populations Had Recoverd, Leaving
Them No Grounds To Pursue Exxon For Additional Damages. According to Alaska Public Media, “At issue
was a provision called a ‘re-opener’ clause. The government’s original 1991 settlement with Exxon, for $900-million,
allowed for additional claims in case of unforeseen environmental impacts. In 2006, the state filed for that money,
citing impacts on harlequin ducks and sea otters from oil still lingering under the surface on Alaska beaches. But now
the state and the Department of Justice say those species have recovered — leaving no grounds to go after that
money. Department of Justice attorney Bill Brighton negotiated the 1991 settlement — and, more recently, the
proposed settlement over the 2010 BP oil spill. He said the government has made the right call. ‘I think we have no
lack of aggressiveness toward oil companies, but we also really believe in following what the science tells us,’ he said.”
[Alaska Public Media, 1/15/15]
Steiner: The Decision To Not Pursue Additional Damages Against Exxon Was “A Betrayal Of Public Trust.”
According to Alaska Public Media, “Biologist Rick Steiner, who has followed the case since 1989 and pushed the state to seek
the additional funds, was outraged by the decision. ‘It was extremely disappointing,’ he said. ‘This was a very sad end to a very
sad chapter in Alaska history.’ Steiner called it’an unconscionable betrayal of public trust.’ ‘Above all, it just validates the
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public’s distrust of the oil industry, and government promises of responsible oil development in Alaska,’ he said.” [Alaska
Public Media, 1/15/15]
Scientists Determined In Later Years That There Was Significant Evidence Of Ongoing Environmental Damage, But That Evidence
Was Not Admissible In The Case
Environmentalist Kate McLaughlin Stated That Under The 1991 Settlement, The Government Had Only Until 2006
To Make New Claims That Could Not Be Altered Later. According to ADN, “That contrasts with the federal
government’s and Gulf states’ $20.8 billion settlement with BP for the Deepwater Horizon disaster, a deal that includes $700
million already set aside for natural resource damages to be discovered in the future, said Rick Steiner and Kate McLaughlin,
head of the environmental group Prince William Soundkeeper. A trustee will decide how to use that money, and BP has no say
in the decisions, they said. McLauglin lamented another aspect of the reopener -- the claim had to be made by 2006 and could
not be altered later, even if new information came in. Under that agreement, she said, ‘the world froze in 2006,’ she said. At
that time, government attorneys decided they could not make a convincing case to invoke the reopener to address the postspill
Prince William Sound herring crash. Since then, McLaughlin said, scientists have collected more evidence to link the spill
to the Sound’s herring woes.’” [ADN, 9/28/16]
McLaughlin Argued That After 2006, Scientists Collected Additional Compelling Evidence Of Ongoing
Environmental Impacts Caused By The Exxon Valdez Spill To Fish Populations And Development. According
to ADN, “At that time, government attorneys decided they could not make a convincing case to invoke the reopener to
address the post-spill Prince William Sound herring crash. Since then, McLaughlin said, scientists have collected more
evidence to link the spill to the Sound’s herring woes. That includes new Exxon Valdez research by the National Marine
Fisheries Service published last month that found salmon and herring embryos exposed to even very low levels of oil
developed long-lasting cardiac defects. Lingering oil will continue to harm fish, McLaughlin predicted. ‘We still have a
number of threats to the Sound,’ she said. ‘The governments really let us down.’” [ADN, 9/28/16]
2008 Supreme Court Ruling On Punitive Damages
2008: After 19 Years Of Fighting, The Supreme Court Ordered Exxon To Pay One-Tenth Of The Original Award In A Case
Over The Spill
2008: The Supreme Court Resolved A 19 Year-Long Class Action Suit Stemming From The Exxon-Valdez Spill.
According to NPR, “A class-action lawsuit wasn’t resolved until 2008, when the U.S. Supreme Court slashed an initial jury
award of $5 billion to $507 million, plus $470 million in interest. Jim Kallander, a fisherman and former mayor of Cordova,
does not blame Exxon for mounting a defense. ‘We all need oil; accidents are going to happen,’ he says. But after 19 years of
drawn-out litigation, he continues, the final Supreme Court verdict was the hardest blow.” [NPR, 3/24/15]
Under Rex Tillerson, Exxon Mobil Was Only Required To Pay One-Tenth Of The Original Award In A Case Over
The Exxon Valdez Oil Spill, Despite Record Profits. According to the LA Times, “The Supreme Court on Wednesday
brought to a close the 19-year legal battle over the Exxon Valdez oil spill by sharply reducing the punitive damages to be paid
by Exxon Mobil Corp. The court ruled that the oil giant must pay $507 million -- about one-tenth of the original jury award --
to punish it for recklessly putting a known alcoholic in charge of a supertanker traveling a treacherous channel. The justices
described Exxon's conduct as ‘worse than negligent but less than malicious.’ Capt. Joseph Hazelwood had been drinking and
was not on the bridge when the ship ran aground on a reef in March 1989, spilling almost 11 million gallons of crude oil into
Alaska's Prince William Sound. Last year, Exxon Mobil netted a record $40.6 billion in profits. At that rate, it could pay the
punitive damages with about four days' worth of profits. But in the end, the punitive damages will amount to only a small part
of the company's payout: Exxon already has spent $2 billion on environmental cleanup and paid $1.4 billion more in fines and
compensation to thousands of fishermen and cannery workers. In a statement Wednesday, Exxon Mobil Chairman and Chief
Executive Rex W. Tillerson said that "the Valdez oil spill was a tragic accident and one which the corporation deeply regrets. . .
. We have worked hard over many years to address the impacts of the spill and to prevent such accidents from happening in
our company again.’” [LA Times, 6/26/08]
2008: U.S. Supreme Court Cut The Punitive Damages Awarded To Alaska Fisherman, Natives, And Property
Owners Affected By The Exxon-Valdez Spill From It’s Original $5 Billion To $507.5 Million. According to
Reuters, “The governments’ civil settlement is separate from a long-running class-action lawsuit filed by Alaska fishermen,
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Alaska Natives, property owners and other individuals and groups affected by the Exxon Valdez spill. Those private
plaintiffs, totaling about 32,000, won more than $500 million in compensation through court verdicts and settlements and
a $5 billion punitive damages fine levied against Exxon in a 1994 federal trial. An appeals court cut that to $2.5 billion, and
the U.S. Supreme Court in 2008 cut the punitive fine down to $507.5 million.” [Reuters, 3/3/11]
2008: The Supreme Court Ruled That $2.5 Billion Awarded To 32,000 Plaintiffs For The Exxon-Valdez Spill Be
Trimed By 80 Percent. According to CS Monitor, “Two decades after the Exxon Valdez supertanker veered off course,
slammed into a reef in Prince William Sound, and created the nation’s worst oil spill, some Alaskans say they’ve been hit
by another disaster – a legal one. A US Supreme Court ruling Wednesday trimmed punitive damages for the 1989
catastrophe by at least 80 percent. So, instead of the $2.5 billion that some 32,000 plaintiffs had been awarded, the court
decided the damages should equal no more than the $507.5 million already paid in compensation to private plaintiffs.
Reaction in Alaska was fast and furious.” [CS Monitor, 6/27/08]
Exxon Claimed It Had Already Paid Enough For The Spill
ExxonMobil Spokesman Claimed The Case Was Not About Providing Compensatory Damages, But “Punishment.”
According to CS Monitor, “Some residents had already pledged anticipated punitive payments to settle debts. ‘We didn’t spill
the oil, you know, and we’re the ones being injured by this. Again,’ said Ms. Ott, who spent much of Wednesday painting
protest signs with slogans like: ‘Guilty Until Proven Wealthy.’ Anyone looking to a big punitive award as a source of more
compensation had misplaced hopes, said ExxonMobil spokesman Tony Cudmore. ‘This case was about punishment and
whether further punishment was warranted. It was not about compensatory damages.’” [CS Monitor, 6/27/08]
Exxon Argued It Had Been Punished Enough By Paying $3.4 Billion In On Cleanup And Other Settlements.
According to CS Monitor, “The company says that after spending $3.4 billion on cleanup, settlements with the Alaskan and
US governments and other groups, fines, and various types of compensation, it needed no more punishment. Legitimate
claims for compensation were handled swiftly and fairly, Mr. Cudmore said. ‘Most people who sought compensation were
compensated within a year of the spill, and the court recognized that.’” [CS Monitor, 6/27/08]
The Plaintiffs Alleged That Exxon’s Original Payments Did Not Provide Enough Due To Nuisances In Maritime Law And
Because Actual Damages Of The Spill Were Not Immediately Apparent
The Plaintiffs Alleged That The Court Failed To Take Into Account The Millions In Damages That Exxon Failed
to Compensate For In The First Place, Due To The Quirks Of Maritime Law And Long Years It Took For
Environmental Impacts To Manifest. According to CS Monitor, “Plaintiffs said the court failed to take into account the
damages that never were compensated in the first place, due to the quirks of maritime law and the long years it took for
environmental impacts to manifest themselves. For example, the collapse of Prince William Sound’s herring population
became evident only years after the spill, plaintiffs say. Cordova fisherman and community leader R.J. Kopchak calculated that
the area lost $126 million through 2005 because of canceled harvests. He lost about $500,000 in earnings, he said, not to
mention his now useless $18,000 worth of herring-fishing equipment that sits under a moss-covered tarp. Also
uncompensated were the lost millions of dollars of wealth held in fishing permits. That wealth vanished when values plunged
to as low as 10 percent of prespill levels. Maritime law allowed compensation only when permits were sold at losses. ‘What we
all should have done is sell each other our permits so that we would have had realized losses,’ Ott says. Alaskan natives who
couldn’t gather fish, game, and meat from oiled waters and beaches got a $20 million settlement, the estimated cost of
replacing wild foods with store-bought substitutes, not the $160 million that plaintiff economists believed reflected true
cultural damages, said Lloyd Miller, an attorney for the plaintiffs.” [CS Monitor, 6/27/08]
Governor Palin Criticized The Decision
Sarah Palin Was “Extremely Disappointed” With The Supreme Court’s Ruling Favorable To Exxon Mobil Related
To The Exxon Valdez Tragedy. According to Oil & Gas Journal, “ExxonMobil Chairman and Chief Executive Officer Rex
W. Tillerson issued a statement saying ExxonMobil has ‘worked hard over many years to address the impacts of the spill and
to prevent such accidents from happening in our company again.’ Alaska Gov. Sarah Palin said she was ‘extremely
disappointed’ with the Supreme Court decision. ‘While the decision brings some degree of closure to Alaskans suffering from
19 years of litigation and delay, the court gutted the jury’s decision on punitive damages,’ Palin said. ‘It is tragic that so many
Alaska fishermen and their families have had their lives put on hold waiting for this decision.’” [Oil & Gas Journal, 7/7/08]
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Cordova Mayor Said Exxon Received Only A “Slap On The Wrist”
Cordova Mayor Tim Joyce: Exxon Got A “Slap On The Wrist.” According to CS Monitor, “‘A slap on the wrist’ for
Exxon, said Tim Joyce, mayor of the fishing hub of Cordova, which was at the center of the disaster. Not long ago, some
Alaskans worried that the fishing hub would sprout ‘spillionaires’ – ordinary people suddenly rich from lump-sum Exxon
payouts. Now in Cordova, there is talk of giving up homes, fishing permits, and the town itself, said Riki Ott, a local
fisherman, scientist, and environmentalist. ‘There are some people, they look like they’ve been shellshocked.’” [CS Monitor,
6/27/08]
NEW JERSEY POLLUTION LAWSUIT
New Jersey Persued Litigation Seeking To Make ExxonMobil Pay More $8.9 Billion For Brownfield
Cleanup
New Jersey Sought $8.9 Billion For Environmental Damage That Occurred As A Result Of Pollution From 1,700
Gasoline Stations, Two Oil Refineries And Other Sites Owned By ExxonMobil. According to CS Monitor, “ New
Jersey judge ruled Friday that environmental groups and a Democratic state senator cannot intervene in the state’s $225
million settlement with Exxon Mobil.[…] New Jersey was originally seeking $8.9 billion for natural resources damaged by
pollution from 1,700 retail gasoline stations, two oil refineries, and a number of other sites owned by the Texas-based oil and
gas provider. Shortly before Judge Hogan ruled on the case, Exxon and New Jersey announced they had reached a settlement
for $225 million.” [CS Monitor, 10/9/15]
New Jersey Sought Funds From Exxon Mobil To Clean Up Its Brownfield Sites And Rectify Damages Done To
Natural Resources. According to CS Monitor, “The money, regardless of the amount, will be used to clean up the
various sites and rectify damages done to natural resources. The Christie administration said the settlement was a better
option, as pursing the $8.9 billion originally requested by the state would result in long and expensive litigation.” [CS
Monitor, 10/9/15]
New Jersey Governor Jon Corzine Had Sought To Resolve The Issue As Far Back As 2007. According to New
York Times, “Judge Hogan said in his ruling that the agreement ‘was entered into in good faith.’ He rejected arguments
that the deal was an ‘abrupt change of course’ for the state, noting that settlement talks had taken place, unsuccessfully, as
far back as 2007, under Gov. Jon S. Corzine. ‘For seven years,’ the judge wrote, ‘Exxon repeatedly responded to the state’s
olive branches with only token offers.” [New York Times, 8/25/15]
2015: Exxon Mobil Reached A Settlement With New Jersey Governor Chris Christie For Cleanup Costs
Associated With Contaminated Mobil Refinery Sites Left In New Jersey
Exxon Mobil Reached A Settlement With Chris Christie And The State Of New Jersey For Billions Of Dollars Less
Than The State Had Been Seeking. According to the Philadelphia Inquirer, “Gov. Christie on Tuesday defended the
settlement of a lawsuit with ExxonMobil Corp. for billions of dollars less than the state had been seeking, saying the deal
would ensure the cleanup of polluted land. At a town-hall-style meeting in Somerset County, Christie said news coverage of
the state's agreement to settle the decade-old lawsuit with ExxonMobil for $225 million - compared with $8.9 billion the state
sought at trial last year - did not highlight a requirement that the company pay for remediation. ‘The idea that this has been
reported as a $225 million settlement - that's $225 million clear of fixing the problem they caused,’ Christie told more than 400
people in an elementary school gymnasium.” [Philadelphia Inquirer, 3/11/15]
Settlement Was For Lawsuit Over Contaminated Exxon Mobil Refinery Sites In New Jersey. According to the
Philadelphia Inquirer, “Christie attacked the New York Times, which first reported New Jersey would settle for much
less than $8.9 billion, stirring controversy before the state announced the deal last week. The governor said the pa-per
does not want to give him positive coverage. ‘If you read the New York Times, you would never know’ about the
cleanup requirement, Christie said. ‘The Times would actually have to say something nice about me.’ A spokesman for
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the New Jersey Attorney General's Office said ExxonMobil had a ‘separate legal obligation’ to remediate
contaminated refinery sites in Bayonne and Linden. Under state administrative orders dating to the 1990s,
ExxonMobil "must thoroughly investigate and fully remediate contamination" to standards specified by the state, said
the spokesman, Leland Moore. ‘The proposed settlement making news right now reaffirms that this required
investigation and remediation work will be performed at ExxonMobil's expense under the state's supervision," Moore
said. He said the cost of that work would be ‘substantial.’” [Philadelphia Inquirer, 3/11/15]
The Deal Was Widely Criticized
New Jersey’s Department Of Environmental Protection Received Thousands Of Comments Opposing The Settlement.
After The Deal Was Announced, New Jersey’s Environmental Protection Agency Received Thousands Of
Comments, A Vast Majority Of Which Opposed The Settlement. According to New York Times, “After the deal was
formally announced, the state’s environmental protection agency received thousands of comments, a vast majority of them
opposing the settlement, the judge noted. The administration of Mayor Bill de Blasio of New York also called for the deal to
be rejected, saying it appeared ‘wholly inadequate’ and noting its provisions made it unlikely Exxon would ever have to pay for
separate claims concerning damage to tributaries and waterways of the New York-New Jersey Harbor estuary, which borders
New York City and New Jersey.” [New York Times, 8/25/15]
Critics Alleged The Deal Was Too Favorable To Exxon
Critics Of The Settlement Were Angered That It Did Not Require Exxon Mobil To “Clean Up The Contamination
To The Extent It Was Previously Ordered To Do.” According to the Philadelphia Inquirer, “Jeff Tittel, director of the
New Jersey Sierra Club, contended Tuesday that the settlement does not re-quire ExxonMobil to clean up the contamination
to the extent it previously was ordered to do. ‘This is a good deal, yeah, for Exxon,’ Tittel said.” [Philadelphia Inquirer,
3/11/15]
Former New Jersey Environmental Protection Commissioner Bradley Campbell Who Brought The Original
Charges Criticized The Deal As Too Favorable To Exxon Mobil. According to the Philadelphia Inquirer, “Christie did
not refer to the accusation levied last week by former New Jersey Environmental Protection Commissioner Bradley Campbell,
who charged in a Times commentary that Christie chief counsel Christopher Porrino ‘elbowed aside the attorney general . . .
and cut the deal favorable to Exxon.’ Campbell, who authorized the lawsuit against ExxonMobil in 2004, called the settlement
a ‘disgrace.’ Christie's office has called Campbell's allegations ‘baseless.’” [Philadelphia Inquirer, 3/11/15]
Margaret Brown, Natural Resources Defense Council: The Settlement Was A “Multi-Billion-Dollar Gift To
ExxonMobil From Gov. Christie.” According to New York Times, “The settlement, he added, ‘was the product of arm’slength,
adversarial negotiations between two highly motivated, sophisticated parties.’ Criticism of the decision was almost
immediate. Margaret Brown, a lawyer with the Natural Resources Defense Council, one of the organizations that filed a friendof-the-court
brief opposing the deal, said, ‘This is a multibillion-dollar gift to ExxonMobil from Gov. Christie and his
administration, at the expense of New Jersey residents.’” [New York Times, 8/25/15]
Christie Claimed That The Settlement Was Cheaper Than Continuing To Pursue Damages In Court
Chris Christie Claimed That The Settlement Was A Better Option For Taxpayers Than Expensive Litigation
Needed To Pursue The Full Amount. According to CS Monitor, “New Jersey was originally seeking $8.9 billion for natural
resources damaged by pollution from 1,700 retail gasoline stations, two oil refineries, and a number of other sites owned by
the Texas-based oil and gas provider. Shortly before Judge Hogan ruled on the case, Exxon and New Jersey announced they
had reached a settlement for $225 million. The money, regardless of the amount, will be used to clean up the various sites and
rectify damages done to natural resources. The Christie administration said the settlement was a better option, as pursing the
$8.9 billion originally requested by the state would result in long and expensive litigation.” [CS Monitor, 10/9/15]
Critics Alleged That The Timing Of The Deal Seemed Unusual, Given The Court Appeared To Rule On The Case After An
Already Lengthy Trial
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Critics Alleged That The Timing Of The Deal Seemed Unusual, Given That The Settlement Came Just As The
Judge Appeared Ready To Rule What Damages Exxon Might Owe After A Lengthy Trail. According to New York
Times, “Much criticism of the deal, which was negotiated confidentially and first disclosed by The New York Times in
February, focused on its timing. It was reached just as Judge Hogan appeared ready to rule on what damages Exxon might
owe after a lengthy 2014 trial in which the state made its case for billions in compensation. As recently as November, the
Christie administration argued in a brief that ‘the scope of the environmental damage resulting from the discharges is as
obvious as it is staggering and unprecedented in New Jersey.’” [New York Times, 8/25/15]
Judge Hogan Approved The Settlement On The Grounds That It Was The First Time, After Years Of
Discussing, That Exxon Presented A Genuine Compromise
Judge Hogan Justified His Approval Of Settlement, On The Grounds That The 2015 Agreement Was The In Seven
Years In Which Exxon Appeared To Provide A Serious Attempt To Resolve The Matter. According to New York
Times, “Judge Hogan said in his ruling that the agreement ‘was entered into in good faith.’ He rejected arguments that the deal
was an ‘abrupt change of course’ for the state, noting that settlement talks had taken place, unsuccessfully, as far back as 2007,
under Gov. Jon S. Corzine. ‘For seven years,’ the judge wrote, ‘Exxon repeatedly responded to the state’s olive branches with
only token offers.” [New York Times, 8/25/15]
Under Settlement Terms, Exxon Was Only Required To Pay $225 Million In The Settlement
2015: A New Jersey Judged Approved The $225 Million Settlement With Exxon. According to New York Times, “New
Jersey’s widely debated $225 million settlement of a pollution lawsuit with Exxon Mobil Corporation was approved on
Tuesday by a state judge who called the deal fair, reasonable and in the public interest. The ruling comes in a longstanding legal
battle in which New Jersey demanded $8.9 billion in compensation for natural resource damage to more than 1,500 acres of
wetlands, marshes and waters at refinery sites that Exxon once owned in Bayonne and Linden.” [New York Times, 8/25/15]
Under Settlement Terms, Exxon Was Required To Cleanup The Sites
Under The Settlement, Exxon Mobil Was Required To Clean Up Its Sites. According to CS Monitor, “The state
Department of Environmental Protection and Mr. Hogan have said that Exxon Mobil will be required to clean the sites, but
the environmental groups do not believe the required clean up will be enough. ‘This deal only requires Exxon to cap and fill
the sites, which is not really a cleanup. Instead of cleaning it up, they would leave tons of oil and chemicals in the ground,’ The
New Jersey Sierra Club wrote in a statement on their website. ‘These sites are extremely contaminated and impact streams and
wetlands.’” [CS Monitor, 10/9/15]
Critics Alleged That The Settlement Deal Did Not Actually Require Exxon To Do Serious Cleanup Of The Sites
New Jersey Sierra Club Argued The Settlement Only Required Exxon To Cap And Fill The Sites, Which Was “Not
Really A Cleanup.” According to CS Monitor, “The state Department of Environmental Protection and Mr. Hogan have
said that Exxon Mobil will be required to clean the sites, but the environmental groups do not believe the required clean up
will be enough. ‘This deal only requires Exxon to cap and fill the sites, which is not really a cleanup. Instead of cleaning it up,
they would leave tons of oil and chemicals in the ground,’ The New Jersey Sierra Club wrote in a statement on their website.
‘These sites are extremely contaminated and impact streams and wetlands.’” [CS Monitor, 10/9/15]
New York Mayor DeBlasio Criticized The Settlement, Noting That Its Provisions Made It Unlikely The Exxon
Would Ever Have To Pay For Claims Related Damage To Tributaries And Waterways On The New York-New
Jersey Harbor Estuary. According to New York Times, “After the deal was formally announced, the state’s environmental
protection agency received thousands of comments, a vast majority of them opposing the settlement, the judge noted. The
administration of Mayor Bill de Blasio of New York also called for the deal to be rejected, saying it appeared ‘wholly
inadequate’ and noting its provisions made it unlikely Exxon would ever have to pay for separate claims concerning damage to
tributaries and waterways of the New York-New Jersey Harbor estuary, which borders New York City and New Jersey.” [New
York Times, 8/25/15]
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2013: EXXON FACED DISCRIMINATION LAWSUIT CLAIMING THE COMPANY
DISCRIMINATED BASED ON SEXUAL ORIENTATION
Rex Tillerson’s ExxonMobil Faced A Discrimination Lawsuit From An Organization Claiming The Company
Discriminated Based On Sexual Orientation. According to the International Herald Tribune, “This past week Freedom to
Work, a gay advocacy group, filed suit against Exxon Mobil in Illinois, claiming discrimination based on sexual orientation.
The group sent the company two fictitious résumés for a job opening in Patoka, Illinois. One résumé had stronger
qualifications but identified the applicant as gay. Exxon Mobil responded to the lesser-qualified applicant’s résumé and made
several follow up phone calls. The gay résumé received no reply.” [International Herald Tribune, 5/25/13]
2015: Illinois Department Of Human Rights Found “Substantial Evidence” Of Anti-Gay Discrimination At
ExxonMobil. According to the Washington Blade, “Nonetheless, in January 2015, the Illinois Department of Human Rights
announced it found ‘substantial evidence’ of anti-gay discrimination at ExxonMobil and enough for the case ‘to be heard
before a trier of fact so that credibility can be determined.’ That finding prompted Freedom to Work to file a complaint before
the Illinois Human Rights Commission, where the litigation remains ongoing. Mike Theodore, a spokesperson for the Illinois
Department of Human Rights, confirmed for the Washington Blade late Monday ‘the matter is still pending before the Illinois
Human Rights Commission,’ but didn’t have any information on when it would be resolved.” [Washington Blade, 12/14/16]
2016 Credit Downgrade By S&P
2016: Under Rex Tillerson, ExxonMobil Had Its Credit Rating Decreased From AAA To AA+ By Standard And
Poor’s. According to the Washington Post, “On Tuesday, Standard & Poor's stripped ExxonMobil of its highest AAA
measure of creditworthiness, cutting it to AA-plus. It's a defeat for the energy giant, which sought to retain the rating after
S&P placed it on notice in February. Before the downgrade, ExxonMobil shared the distinction with just two other
companies: Johnson & Johnson and Microsoft. ‘Nothing has changed in terms of the company's financial philosophy or
prudent management of its balance sheet,’ Scott Silvestri, a company spokesman, said in an email. ‘ExxonMobil places a high
value on its strong credit position and continues to be focused on creating long-term shareholder value despite near-term
market volatility.’ The downgrade is a blow to chairman and chief executive Rex Tillerson, as he nears mandatory retirement
age next year.” [Washington Post, 4/27/16]
Lobbying
2008: UNDER TILLERSON EXXON PLEDGED TO DISCONTINUE ITS FUNDING
OF CLIMATE DENIAL GROUPS
2008: Exxon Mobil Pledged To Discontinue Contributions To Climate Change Denial Groups. According to the
Guardian, “In its corporate citizenship report, released last week, ExxonMobil says it intends to cut funds to several groups
that "divert attention" from the need to find new sources of clean energy. The move comes ahead of the firm's annual meeting
today in Dallas, at which prominent shareholders in-cluding the Rockefeller family will urge ExxonMobil to take the problem
of climate change more seriously. Green campaigners accuse the company of funding a ‘climate denial industry’ over the last
decade, with $23m (£11.5m) handed over to groups that play down the risks of burning fossil fuels. The ExxonMobil report
says: ‘In 2008 we will discontinue contributions to several public policy research groups whose position on climate change
could divert attention from the important discussion on how the world will secure the energy required for economic growth in
an environmentally responsible manner.’” [Guardian, 5/28/08]
2008: EXXON SUCCESSFULLY LOBBIED S.E.C. TO CHANGE COUNTING RULES
FOR CERTAIN RESERVES
Exxon And Other Corporations Successfully Lobbied The Republican-Led S.E.C In 2008 To Change Reporting
Rules To Allow The Counting Of Oil Sands, Shale Gas, And Other Banned Reserves To Be Counted. According to
Private Empire: ExxonMobil and American Power, On December 31, 2008, the outgoing Republican-led Securities and Exchange
Commission revised its reserve reporting rules to allow the counting of oil sands, shale gas, and other previously banned
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categories of reserves. The commission also changed other reporting rules that Raymond and Tillerson had found
objectionable. The changes, achieved by oil industry lobbying, liberated ExxonMobil from spinning. The corporation ceased
double counting: From now on, it would report only numbers authorized by the S.E.C. It did not retract its previous claims to
Wall Street and the public, however, noting only that its long reserve re­ placement ‘streak’ was based on some years when the
S.E.C. rules were not used.” [Private Empire: ExxonMobil and American Power, pg. 597, 2012]
Exxon Was Notorious For Ignoring Accounting Methods Required By The S.E.C. In Order To Claim Each
Year That It Discovered New “Proved Reserves” Of Oil And Gas To Replace Or Exceed The Year’s
Production And Sales. According to Private Empire: ExxonMobil and American Power, “Under Raymond and again
during Tillerson’s first years, ExxonMobil had declared publicly through press releases and at Wall Street analyst
presentations that it had found enough new ‘proved reserves’ of oil and gas to replace each year’s production and
sales. But in making this claim, the corporation ignored the accounting methods required by the Securities and
Exchange Commission. In some years, ignoring the S.E.C. reporting rules allowed the corporation to side­ step
embarrassment. In 2008, using S.E.C. rules, and based on the corporation’s limited public disclosures, ExxonMobil’s
reserve replacement would have been below 75 percent, an alarming rate. But instead of accounting forthrightly for
this failure, the corporation issued a press release that quoted Tillerson boasting, ‘ExxonMobil . . . has replaced an
average of 110 percent of production over the last ten years.’27 That was a defensible claim only if one preferred
ExxonMobil’s self-regulation to federal rules.” [Private Empire: ExxonMobil and American Power, pg. 596-597, 2012]
Labor Practices
FOREIGN WORKERS CRITICIZED EXXON’S WORK CONDITIONS AND LABOR
PRACTICES
Workers At Exxon’s Kome-5 Facility In Chad Referred To The Compound As Guantanamo Due To The Tall,
Barbed-Wire Fences And Month-Long Shifts Workers Spent Trapped Inside Due To Extreme Threats In The
Country. According to Private Empire: ExxonMobil and American Power, “Scores of oil platforms had spread across the red clay
ravines and sub­ tropical bush of southern Chad by 2006 . There were by now just over twelve thousand square Each rig
pointed at the sky like a thirty-foot rocket prepared for launch. In the dry seasons heat baked the ground to an amber shade
and blown dust caked the equipment. When the rains came, low clouds hung in wisps around the metallic caps topping the
derricks. At the main production facility at Kome, known within ExxonMobil as Kome-5, some of the Africans who worked
behind the tall fences illuminated by safety lights, and who found their lives constrained by ExxonMobil’s extensive rule
making, facetiously referred to the compound as Guantanamo. The joke’s suggestion of exclusion captured a larger truth
about ExxonMobil’s operations in Chad. Since it was not feasible for the corporation to devise solutions to all of the problems
of a very poor country, the logic of ExxonMobil’s systems management argued for engineering Chad and its pathologies out
of the equation to the greatest extent possible. ExxonMobil’s one thou­ sand expatriate workers and managers rotated in and
out of the country on twenty-eight-day tours without ever interacting with the world outside their compound chain-link
fences, which were nine feet high and topped with a barbed-wire anticlimbing barrier.” [Private Empire: ExxonMobil and
American Power, pg. 350, 2012]
An International Labor Union For Oil And Gas Workers Issued A Complaint That An Exxon Subsidiary In Nigeria
Un-Lawfully Relied On “Non-Direct And Contract Workers,” And “Failing To Give Nigerian Nationals Long-Term
Job Opportunities.” According to Africa News, “The International Federation of Chemical, Energy, Mine and General
Workers’ Union (ICEM) has drawn the attention of the United States-based parent company of Exxon Mobil to the antilabour
activities of one of its subsidiaries-Mobil Producing Nigeria Unlimited (MPN) concerning the use of casual and
contract workers by MPN. ICEM is the predominant trade union federation in the world for oil and gas workers in both the
upstream and downstream sectors. ICEM, in a petition to the Chairman/Chief Executive Officer, ExxonMobil Corporation,
Texas, Mr. Rex Tillerson, expressed concern that MPN is un-lawfully engaging non-direct and contract workers to perform
key functions in Nigeria’s oil and gas industries thereby failing to give Nigerian nationals long-term job opportunities in their
work places.” [Africa News, 3/15/10]
Exxon Subsidiary Refused To Negotiate With The Labor Union When The Union First Protested Exxon’s
Practices. According to Africa News, “Petroleum and Natural Gas Senior Staff Association of Nigeria
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(PENGASSAN) had last month shut down operations of Mobil offices across the country to draw attention to the
plight of many Nigerian workers made redundant by the MPN. Despite the protest, management of MPN had refused
to dialogue with the union. Given this scenario, ICEM decided to take up the matter and write to the parent
company on the proliferation of such employment by Mobil subsidiary in Nigeria. ICEM said it con-siders the refusal
by Mobil to negotiate with the union as a flagrant disregard of its social responsibility.” [Africa News, 3/15/10]
UNDER TILLERSON, EXXON WAS SLOW TO ADOPT PROTECTIONS FOR LGBT
EMPLOYEES
New York Times: Under Tillerson’s Leadership, “Exxon Was Slow To Adopt Explicit Policies Protecting Gay
Employees From Discrimination.” According to the New York Times, “Mr. Tillerson is not always easy to define. Deeply
conservative and committed to the Boy Scouts of America, he quietly pushed the organization to be open to gay rights. But
under his leadership, Exxon was slow to adopt explicit policies protecting gay employees from discrimination.” [New York
Times, 12/11/16]
Exxon’s Refusal To Adopt Specific Policy Barring Discrimination Against Gay Employees Put Them
Behind Many Other Fortune 500 Companies. According to Dallas News, “Despite increasing pressure from gay
rights advocates, Exxon has refused to create a specific policy barring discrimination against gay employees, as many
Fortune 500 companies have done.” [Dallas News, September 2014]
1990s – Present: Sakhalin Island
1990S: TILLERSON LED TALKS TO DEVELOP SAKHALIN ISLAND
Rex Tillerson Led Talks In The 1990s With The Russian Government To Develop Oil And Gas Fields Off Russia’s
Sakhalin Island. According to Daily Deal/The Deal, “Tillerson’s ties to Russia go way back: In the 1990s he was praised as a
skilled dealmaker when he led talks with the Russian government to develop oil and gas fields off Sakhalin Island. While
Exxon Mobil has faced the same bureaucratic difficulties with Sakhalin that competitors have had with their Russian investments,
Exxon Mobil has been successful at producing oil there. That success, along with the joint venture with Rosneft, was
the key reason Tillerson won the top job in 2006.” [Daily Deal/The Deal, 9/18/11]
Rex Tillerson’s Negotiating Skills Are Credited With Clinching The Sakhalin Island Deal. According to the
Sunday Telegraph, “It was Tillerson who, in the 1990s, led the talks with the Russian government to develop the fields
off Sakhalin and whose negotiating skills are credited with clinching the deal. Tillerson will need those skills and more
to lead Exxon over the next few years. Although the industry is enjoying record oil prices - which helped to power
Exxon's profits to a record $36.1bn (pounds 19.2bn) last year - the benign operating environment is not without its
challenges.” [Sunday Telegraph, 8/27/06]
2001: TILLERSON SECURED AN AGREEMENT WITH THE RUSSIAN
GOVERNMENT TO DEVELOP A MAJOR OIL AND GAS FIELD OFF SAKHALIN
ISLAND
2001: Rex Tillerson Made A Deal With The Russian Government To Allow ExxonMobil Project Off Of Sakhalin
Island. According to the Dallas Morning News, “Mr. Tillerson, who also was not interviewed, cut a deal with the Russian
government in 2001 to allow the giant production project off of Sakhalin Island. Observers say experience negotiating with the
Russians is key for the chief executive as Russia's importance in the energy world increases. ‘Working with Russian
bureaucracy is never very smooth,’ said Eugene Lawson, president of the U.S.-Russia Business Council. ‘He was able to do a
straight zigzag through a minefield.’ Mr. Tillerson, who is a board member of the business council, won the Russians over
through his honesty and consistency, Mr. Lawson said.” [Dallas Morning News, 12/25/05]
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EARLY 2000S: TILLERSON LED EXXON’S SAKHALIN ISLAND OPERATION
(SAKHALIN-1)
Rex Tillerson Led Exxon’s Drilling Operations Off The Coast Of Russia’s Sakhalin Island Before Becoming CEO.
According to the Dallas Morning News, “Exxon and Rosneft have been working together for years on their most challenging
project, drilling off the coast of Sakhalin Island. Exxon chief executive Rex Tillerson led the company’s Russian operations,
including the Rosneft project, before moving to the corner office in Irving. ‘They kind of cut their teeth on the Sakhalin
project,’ SMU’s Bullock said. He added that the Rosneft deal is another example of how Tillerson ‘has significantly moved the
company forward in his tenure.’” [Dallas Morning News, 8/31/11]
2002: Tillerson Announce A $140 Million Contract With A Russian Shipyard To Upgrade The Sakhalin
Project. According to Private Empire: ExxonMobil and American Power, “President Bush had scheduled a visit to
Moscow for May 2002 to meet with Putin and follow up on energy diplomacy, among other sub­ jects. The
administration hoped at this Moscow summit to announce new agreements between ExxonMobil and Russian oil
companies, as well as between Chevron and Russian firms. They would not be large deals, but the announcements
would display momentum. Tillerson rehearsed for negotiations with Putin, role-playing with a colleague. 10 On the
eve of Bush’s arrival in Moscow, Tillerson announced a $140 million contract with a Russian shipyard to upgrade one
of ExxonMobil’s Sakhalin production platforms. Don Evans attended the contract-signing ceremony in May and
declared that direct U.S. investment in the Russian oil industry would soon be increasing. A joint statement issued by
Putin and Bush called out the ‘successful advancement of the Sakhalin- I project’ and drew similar attention to a
Chevron pipeline agreement.” [Private Empire: ExxonMobil and American Power, pg. 258, 2012]
Tillerson’s Management Of Sakhalin-1 Contributed To His Pick As Exxon’s CEO
Rex Tillerson’s Stewardship Of Exxon And Rosneft’s Drilling Project On Sakhalin Island Helped Make The Case
For His Promotion To CEO. According to the Australian, “Rosneft and Exxon have worked together since the 1990s on
the Sakhalin-1 project in Russia’s Far East, a venture Mr Tillerson helped negotiate. The Sakhalin project has faced years of
bureaucratic and other difficulties but has been successful in producing oil. Both Mr Tillerson and BP chief executive Bob
Dudley, who was brought in after last year’s deadly Deepwater Horizon explosion and oil spill, have extensive experience
dealing with Russia. Mr Dudley ran the TNK-BP joint venture for five years, an investment that has generated substantial
profits but also large headaches for the company. And Mr Tillerson’s ability to secure the Sakhalin deal helped vault him into
the top job at Exxon. In the end, it was Mr Tillerson who was able to secure access to the Kara Sea prospect, not Mr Dudley.”
[Australian, 9/1/11]
Sakhalin-1 Was Seen As A Great Accomplishment By Exxon
Washington Times: “Exxon Regularly Pitches Its Groundbreaking Sakhalin Island Liquefied Natural Gas Drilling
Project In Russia's Far East As One Of Its Greatest Accomplishments.” According to the Washington Times, “In
contrast to BP, Exxon Mobil - the American company most heavily invested in Russia - last week deflected questions from
worried investors about the possible impact of tightening sanctions on its vast operations in Siberia. Exxon regularly pitches its
groundbreaking Sakhalin Island liquefied natural gas drilling project in Russia's Far East as one of its greatest
accomplishments. In helping Russia tap into its remote Far Eastern offshore reserves under the harshest of Arctic conditions,
Exxon has played a pivotal role in helping Russia exploit its potential as an energy giant. Among other things, the
infrastructure put into the Sakhalin project laid the groundwork for funneling more of Russia's oil and gas to China, Japan and
other lucrative Asian markets, making Russia less dependent on Europe as a market for its fuel.” [Washington Times,
8/12/14]
BY 2012, EXXON’S SAKHALIN-1 PROJECT HAD PRODUCED A DIRECT BENEFIT
OF $25 BILLION TO RUSSIA
Exxon’s Sakhalin-1 Project Had An Estimated Direct Benefit To The Russian Federation Of Approximately $25
Billion As Of April 2012. According to Fair Disclosure, “Sakhalin-1 project in Russia is example of type of investments
needed to expand energy supplies critical to advancing economies and raising living standards. 3. Sakhalin-1, one of the largest
foreign investments in Russia, delivered significant value to Russia and global economy. 1. Total estimated direct benefit to-
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date to Russian Federation is approx. $25b. 3. XOM and Rosneft along with co-ventures have worked together for more than
15 years in area characterized by remoteness and climate conditions that many believe would preclude successful exploration
and production.” [Fair Disclosure, 4/18/12]
2014 – PRESENT: U.S. SANCTIONS PREVENTED EXXON FROM COLLECTING
SAKHALIN-1 REVENUE
Following U.S. Sanctions, Exxon Became Unable To Collect Revenues From Sakhalin-1 Or Risk Hefty Fines From
The U.S. Government. According to Forbes, “Exxon has a lot of money invested in Russian oil and gas. It is also one of the
largest stakeholders in the massive offshore Berkut platform on Sakhalin Island in Russia’s far east. They own 30% of the the
Sakhalin oil fields through a local subsidiary called Exxon Naftegas Limited. The other partners are oil firms from Japan, India
and Russia’s Rosneft, which has a 20% stake. The global partnership, called the Sakhalin Consortium, was formed back in
1996 to explore for hydrocarbons in Russian sub-Arctic waters. Despite sanctions, Sakhalin began production this year. Exxon
is unable to collect revenues from the facility so long as sanctions are in place or risk hefty fines from Washington. Rosneft
CEO, Igor Sechin, known by the local media as ‘Darth Vader’, said in September that Sakhalin Island and Kara Sea
production will continue without Exxon. Rosneft and Exxon launched a new Kara Sea drilling well in September, but the
American oil company will have to stand-down for now.” [Forbes, 2/27/15]
2003: Attempted Yukos Deal
2003: TILLLERSON’S ATTEMPT TO PURCHASE A LARGE STAKE IN RUSSIAN
OIL AND GAS GIANT, YUKOS
2003: Exxon Was Intent On Acquiring A Large Stake In Yukos, Then Russia’s Largest Private Oil Company.
According to The New York Times, “The Exxon-Rosneft agreement commits Exxon to spend about $1 billion looking for oil
off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is discovered. But Russian authorities have
reneged on deals with Exxon in the past. Desperate for investments when oil prices sank in the 1990s, Russia agreed to give
Exxon generous terms that exempted it from most taxes and allowed it to sell much of the oil it prospected. But in recent
years, local authorities have interfered in operations. In the early 2000s, Exxon was intent on acquiring a large stake in Yukos,
once Russia’s largest private oil company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s main
shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets to
the state oil company, Rosneft.” [The New York Times, 1/28/11]
THE DEAL COLLAPSED FOLLOWING YUKOS CEO MIKHAIL KHODORKOVSKY
ARREST BY PUTIN
2003: Exxon’s Efforts To Purchase A Large State In Yukos Failed When The Kremlin Arrested Yukos’s Main
Shareholder, Mikhail B. Khodorkovsky, In A Politically Motivated Effort To Transfer Yukos Assets To Rosneft.
According to The New York Times, “The Exxon-Rosneft agreement commits Exxon to spend about $1 billion looking for oil
off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is discovered. But Russian authorities have
reneged on deals with Exxon in the past. Desperate for investments when oil prices sank in the 1990s, Russia agreed to give
Exxon generous terms that exempted it from most taxes and allowed it to sell much of the oil it prospected. But in recent
years, local authorities have interfered in operations. In the early 2000s, Exxon was intent on acquiring a large stake in Yukos,
once Russia’s largest private oil company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s main
shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets to
the state oil company, Rosneft.” [The New York Times, 1/28/11]
2003: Following The Arrest And Detention Of Yukos CEO Mikhail Khodorkovsky, Rex Tillerson Said, “There's A
Lot Of Noise, But This Is A Long-Term Business. Let's Wait And See How It Plays Out.” According to Oil and Gas
Journal, “While many have voiced serious concerns about the recent arrest and detention of former OAO Yukos CEO
Mikhail Khodorkovsky, several government and energy executives played down the controversial incident reiterating their
commitment to energy development in Russia. A group of Russian and American energy and financial executives met Nov.
12-14 in Boston for the 7th US-Russian Investment Symposium, sponsored by Harvard University and Dow Jones
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Conferences. The meeting came just weeks after the Khodorkovsky arrest, the topic dominated discussions at the conference.
[…] Several executives from major energy companies made it patently clear that they see Russia as part of their long-term
plans, and they are fully aware of the risks. ‘Be very careful not to criticize, when we don't have all the facts,’ said Archie
Dunham, chairman of ConocoPhillips, adding, ‘We're not going to be quickly discouraged. We want political stability, and for
Putin to implement the rule of law.’ ‘There's a lot of noise, but this is a long-term business. Let's wait and see how it plays
out,’ said Rex Tillerson, senior vice-president, ExxonMobil Corp.” [Oil and Gas Journal, 11/24/03]
Tillerson Had Attended An Energy Summit With Mikhail Khodorkovsky Only Weeks Before His Arrest
Rex Tillerson Attended An Energy Summit With Mikhail Khodorkovsky Weeks Before His Arrest. According to the
Daily Telegraph, “ExxonMobil's chairman, David O'Reilly, and its senior vice-president, Rex Tillerson, attended a commercial
energy summit in St Petersburg last week, at which Mr Khodorkovsky was present. In a speech to the conference Mr Tillerson
stressed ExxonMobil's interest in expanding in Russia.” [Daily Telegraph, 10/3/03]
2006 – 2007: Withdrawal From Venezuela
2007: CHAVEZ ORDEREDTHE NATIONALIZATION OF OIL PROJECTS IN THE
ORINOCO RIVER BASIN
January 13, 2007: Hugo Chavez Told The Venezuelan Congress That He Would Enforce A Law Requiring That The
Venezuelan State Oil Company Seize Majority Shares And Become The Sole Operator Of All Oil Projects In The
Orinoco River Basin. According to Private Empire: ExxonMobil and American Power, “On January 13, 2007, Hugo Chavez told
the Venezuelan congress that he would enforce a law requiring that P.D.VS.A. seize majority shares and become the sole
operator of all oil projects in the Orinoco River basin . If the international companies currently in charge of those projects
wished to stay on as minority owners, they could renegotiate terms. Chinese, Russian, Indian, Belarussian, Vietnamese, and
Cuban operators would be entering the Orinoco basin, Chavez announced. ‘He who wants to stay on as our partner, we’ll
leave open the possibility to him,’ Chavez said. ‘He who doesn’t want to stay on as a minority partner, hand over the field and
good-bye.’ He added playfully, switching from Spanish to English, ‘Good­ bye, good luck, and thank you very much.’[…]
Tillerson and Cutt took a two-track approach: They took all the steps necessary to leave Venezuela by the June deadline
Chavez had announced, and simultaneously, they negotiated to stay.’” [Private Empire: ExxonMobil and American Power, pg.
423, 2012]
Prior To Chavez’s 2007 Nationalization Exxon Had Worked In Venezuela For Decades. According to the
New York Times, “Mr. Tillerson’s first big overseas test came soon after he became Exxon Mobil’s chief executive in
2006, when he confronted the government of Venezuela head-on — and suffered the consequences. The company
had worked in Venezuela for decades, but then-President Hugo Chávez, calling for a Socialist-inspired revolution to
benefit the poor, began renegotiating the industry’s contracts. By 2007, the Venezuelan government set its sights on
projects that included oil industry titans like Exxon Mobil, Chevron and Total. Foreign companies soon began
cooperating with Mr. Chávez’s government, but Exxon Mobil and another company, ConocoPhillips, balked at the
changes.” [New York Times, 12/13/16]
TILLERSON ATTEMPTED TO NEGOTIATE WITH CHAVEZ OVER THE
PLANNED NATIONALIZATION OF EXXON’S ORINOCO HOLDINGS
Tillerson Was Willing To Negotiate With Chavez In 2007 When Chavez Planned To Require Venezuela’s State-
Owned Oil Company To Become The Sole Operator Of All Oil Projects In The Orinoco River Basin. According to
Private Empire: ExxonMobil and American Power, “On January 13, 2007, Hugo Chavez told the Venezuelan congress that he
would enforce a law requiring that P.D.VS.A. seize majority shares and become the sole operator of all oil projects in the
Orinoco River basin . If the international companies currently in charge of those projects wished to stay on as minority
owners, they could renegotiate terms. Chinese, Russian, Indian, Belarussian, Vietnamese, and Cuban operators would be
entering the Orinoco basin, Chavez announced. ‘He who wants to stay on as our partner, we’ll leave open the possibility to
him,’ Chavez said. ‘He who doesn’t want to stay on as a minority partner, hand over the field and good-bye.’ He added
playfully, switching from Spanish to English, ‘Good­ bye, good luck, and thank you very much.’[…] Tillerson and Cutt took a
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two-track approach: They took all the steps necessary to leave Venezuela by the June deadline Chavez had announced, and
simultaneously, they negotiated to stay.’” [Private Empire: ExxonMobil and American Power, pg. 423, 2012]
Tillerson Had ‘Shown Surprising Flexibility In An Attempt To Reach A Deal’ With Chavez.” According to
Private Empire: ExxonMobil and American Power, “In ‘Washington , Tillerson met with Venezuela’s ambassador to the
United States, Bernardo Alvarez, on May 16. He told the envoy that ExxonMobil must have a confidentiality
agreement with the Chavez regime before it could negotiate in earnest. ‘We’re looking for a win-win solution,’
Tillerson said, but he warned that the corporation ‘was willing to go to arbitration if it had to do so.’ Cutt confided to
the embassy as the final deadline neared that Tillerson and the Management Committee at headquarters had ‘shown
surprising flexibility in attempting to reach a deal’ with Chavez. The chances of giving in to Venezuela’s demands were
apparently not so close to zero after all. For example, Cutt disclosed, they would ‘swallow hard’ and give up rights to
international arbitration if all the other deal terms were satisfactory.” [Private Empire: ExxonMobil and American
Power, pg. 424, 2012]
Rex Tillerson Said Regarding Hugo Chavez’s Planned Takeover Of The Orinoco Oil Fields, Of Which Exxon
Owned A Major Stake: “Our View Has Always Been 'If You Want To Change A Contract, Let's Sit Down And Talk
About It'. Sanctity Of Contracts Is Important To Us.” According to the Daily Telegraph, “AS LEFTIST populism roars
back to life in Latin America, the number of countries still safe for foreign oil and gas companies is shrinking by the month.
Venezuela, Bolivia, and Ecuador have already succumbed to asset seizures and confiscatory taxes: Peru and Argentina are
sliding in the same direction. The pin-up paratrooper of the ‘anti-gringo’ revolt is Venezuela's leader, Hugo Chavez, making
political hay out of the world's fifth biggest crude exports. Mr Chavez said last week that his government was taking a 60pc
controlling stake in huge Orinoco fields, hitting Exxon, Conoco, Chevron, Total, Statoil and, to a small extent, BP. It follows
the takeover of fields operated by Total and Italy's Enel in April, coming on top of extra oil levies of 33pc based on volume of
output, not profit. Exxon has so far balked at the demands, refusing to sell its stakes. ‘We're not looking for a fight with
anybody but our view has always been 'if you want to change a contract, let's sit down and talk about it'. Sanctity of contracts
is important to us,’ said chief executive Rex Tillerson.” [Daily Telegraph, 5/30/06]
TILLERSON ULTIMATELY DECIDED THAT EXXON LEAVE VENEZUELA
RATHER THAN MAKE A DEAL WITH CHAVEZ
Exxon Elected To Make No Deal With The Chavez Regime And Withdrew Operations From Venezuela. According
to Private Empire: ExxonMobil and American Power, “On June 25, however, Cutt called again to declare that ExxonMobil had
given up.The two sides were ‘billions of dollars apart,’ he said. For the second time in just over three decades, the largest
private oil corporation in the world would withdraw from Venezuela, a country that might hold the world’s largest reserves, or
was at least second to Saudi Arabia, where ExxonMobil also had not a single barrel of bookable reserves.21 BP, Chevron,
Total, ENI of Italy, Sinopec of China, and Statoil all negotiated compromises during the weeks that followed; they accepted
new terms as minority owners, subordinate to the Chavez regime. Only ConocoPhillips joined ExxonMobil in refusal and
departed. The decision marked one of the first tests of Tillerson’s willingness to endure economic losses for the sake of policy
and principle.” [Private Empire: ExxonMobil and American Power, pg. 424-425, 2012]
2006: Rex Tillerson Regarding A Project In Venezuela: “Nothing's Too Big To Walk Away From For Us.”
According to the Dallas Morning News, “Exxon Mobil sold its interest in one oil field, shut in another, reserved its
right to seek arbitration over government royalty hikes and was removed from a petrochemical venture by the
Venezuelan government. The company says it's in Venezuela for the long haul, but it could still come to blows with
the government over an Exxon-managed $1.6 billion heavy oil project in the Orinoco belt. That possibility led Fitch
Ratings and Moody's to downgrade the project's debt, along with the debt of three other Orinoco projects, in May.
Exxon Mobil chairman Rex Tillerson isn't backing off. In March, he said the company would refrain from any major
new investments in Venezuela. Asked in May whether the Orinoco was too big to walk away from, Mr. Tillerson told
The Dallas Morning News: ‘Well, nothing's too big to walk away from for us.’ Exxon Mobil takes a hard line with any
government that tries to change contract terms, whether it's Mr. Chávez or the U.S. Congress, which wants to roll
back royalty relief for offshore drilling that was enacted when prices were low. But when companies weigh political
risks against the geologic risks inherent in looking for oil, many of them decide to ride out a rough political climate.”
[Dallas Morning News, 8/2/06]
2006: Under Rex Tillerson’s Leadership, ExxonMobil Sold Its Stake In A Venezuelan Oil Field Rather Than Submit
To Higher Taxes. According to the Economist, “Despite this choosiness, however, Mr Tillerson maintains that Exxon is not
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short of opportunities. Far from being shut out of the best real estate by nationalist governments, it is helping to tap the
world's biggest gas field in Qatar, and has just signed a deal to develop an oilfield in the United Arab Emirates. Unlike most
other Western firms, it recently sold its stake in a Venezuelan field rather than submit to higher taxes--suggesting that it is not
desperate for oil to pump. Exxon estimates its total ‘resource base’ of possible, probable and proven reserves at 73 billion
barrels, which would last 49 years at the rate it is pumping.” [Economist, 4/29/06]
FOLLOWING EXXON’S PULLOUT, TILLERSON SPOKE OUT AGAINST
NATIONALIZATION OF ENERGY RESOURCES
2006: Rex Tillerson Called Recent Oil And Gas Industry Nationalizations In Nations Such As Venezuela
“Shortsighted,” Explaining Those Nations Risk Derailing The Development Of Their Natural Resources.
According to Platts Oilgram News, “On the subject of nationalization overseas, Tillerson warned that some nations appear to
be very ‘short-sighted’ about their resources and he mentioned Venezuela in particular. Tillerson said those nations run the
risk of derailing their efforts in developing resources by triggering a cycle of lowered activity. In his first annual meeting since
succeeding Raymond, Tillerson also drew praise from at least one share-holder who called him more candid and polite than his
predecessor.” [Platts Oilgram News, 6/1/06]
2006: Rex Tillerson Told OPEC Ministers, In Remarks Seemingly Directed At Venezuela, That “Economic
Nationalization May Gain Popularity” But At The Cost Of Losing Investments In The Longer Term. According to
Platts Oilgram News, “ExxonMobil's Tillerson noted the importance of OPEC reserves, saying crude production from non-
OPEC producers was expected to plateau while the ‘call’ on OPEC oil would rise by 50% over current levels to 50 million b/d
by 2030. This would require free trade and investment, open access and international partner-ships, he said. ‘Economic
nationalization may gain popularity,’ he said, but at the cost of losing investments in the longer term. His remarks seemed to
be directed in part at Venezuela, whose Oil Minister Rafael Ramirez preached the virtues of nationalizing national resources in
his opening speech to the same seminar.” [Platts Oilgram News, 9/18/06]
EXXON TOOK VENEZUELA TO ARBITRATION COURT TO RECOUP LOSSES
Exxon Took Venezuela To Arbitration Court, Which Did Not Reach A Final Decision Until 2014. According to the
New York Times, “Mr. Tillerson’s first big overseas test came soon after he became Exxon Mobil’s chief executive in 2006,
when he confronted the government of Venezuela head-on — and suffered the consequences. The company had worked in
Venezuela for decades, but then-President Hugo Chávez, calling for a Socialist-inspired revolution to benefit the poor, began
renegotiating the industry’s contracts. By 2007, the Venezuelan government set its sights on projects that included oil industry
titans like Exxon Mobil, Chevron and Total. Foreign companies soon began cooperating with Mr. Chávez’s government, but
Exxon Mobil and another company, ConocoPhillips, balked at the changes. ‘From the very beginning, Exxon sent strong
signals that they would not be run over, they would use all their legal rights, and they would be more confrontational,’ said
Francisco Monaldi, a former consultant for Venezuela’s state oil company, PDVSA. In response, Venezuela expropriated the
assets of both companies. Exxon Mobil took Venezuela to an arbitration court, and got a disappointing outcome. In 2014,
seven years after the dispute began, the World Bank’s international arbitration court found in the company’s favor, but
awarded only about one-tenth of what Exxon Mobil said the assets were worth. The company has not operated in Venezuela
since. ‘In my opinion, he took it very personal with Chávez,’ said Ghassan Dagher, a Venezuelan oil industry consultant,
adding that Mr. Tillerson ‘fell into the trap completely.’” [New York Times, 12/13/16]
Exxon Contracts In Foreign Countries Included Clauses Guaranteeing Specific Rights Under International
Arbitration In Order To Avoid Host Government Laws And Effectively Maintain A Global Law To Cover Its
Contracts. According to Private Empire: ExxonMobil and American Power, “By the time of the Hugo Chavez imbroglio,
the thinking of Exxon­ Mobil’s senior executives about the sanctity of contracts had evolved be­ yond business
strategy into a philosophy of global governance. The spread of international law regimes and trade treaties had given
birth to global business arbitration forums at the World Bank and international chambers of commerce. In its
contracts with national oil companies or foreign governments, the corporation inserted elaborate clauses guaranteeing
Exxon­ Mobil’s rights to international arbitration before these bodies if the host country tried to alter contract terms,
royalty rates, or taxation. Through these provisions, ExxonMobil evaded the conundrums of two hundred different
systems of national property rights; it drew all of the host governments with which it contracted into a universal
system of arbitration at the World Bank and the international chambers. The corporation’s purpose, said the industry
consultant, was to ‘approximate a global law,’ one defined not by national parliaments or the United Nations, but by
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the binding dispute resolution regime of ExxonMobil’s worldwide contracts.” [Private Empire: ExxonMobil and
American Power, pg. 417-418, 2012]
2012: An Arbitration Panel Found In Venezuela’s Favor Granting Exxon, $908 Million, Less Than 10
Percent Of The Damages It Sought
2012: An International Arbitration Panel Awarded Exxon $908 Million In Compensation For Venezuela’s 2007
Nationalization Of Its Assets, Less Than 10 Percent Of What The Company Sought. According to Reuters, “An
arbitration panel has awarded U.S. oil giant Exxon Mobil Corp $908 million in compensation for Venezuela’s 2007
nationalization of its assets, less than 10 percent of what the company sought in a long legal battle with the OPEC nation.
Venezuelan President Hugo Chavez likely will celebrate the ruling as a vindication of his nationalist confrontation with oil
companies aimed at increasing revenue from the industry to boost funding for state-led anti-poverty programs. But Venezuela
faces another arbitration with Exxon (XOM.N) over the nationalization of the Cerro Negro heavy oil project, and more than a
dozen pending claims from companies like oil major ConocoPhillips (COP.N) resulting from a wave of state takeovers. ‘They
must be elated that they got off so cheap. It’s certainly a happy new year for Venezuela,’ said Russ Dallen, head bond trader at
investment bank Caracas Capital Markets.” [Reuters, 1/1/12]
2012: Another Arbitration Panel Essentially Found In Venezuela’s Favor Granting Only About $1.6 Billion
To Exxon
2014: An Arbitration Tribunal Ordered Venezuela To Pay Exxon Mobil Corp About $1.6 Billion To Compensate For
Oil Nationalization In 2007. According to Reuters, “A World Bank arbitration tribunal on Thursday ordered Venezuela to
pay Exxon Mobil Corp about $1.6 billion to compensate for oil nationalization in 2007, though state oil company PDVSA
expects to eventually pay closer to $1 billion. Venezuela’s socialist government hailed the long-awaited decision as a victory for
its ‘sovereignty,’ given the U.S. multinational’s hope for a much larger award in a compensation case typical of the sweeping
nationalizations under the late Hugo Chavez’s 14-year rule. Still, the decision by the International Centre for Settlement of
Investment Disputes’ (ICSID) comes at a delicate time for cash-strapped Venezuela, already struggling with a sluggish
economy, rampant inflation and looming bond payments. Venezuela said it would pay the award, only after deducting a
previous Exxon award from the Paris-based International Chamber of Commerce (ICC) of $908 million. A source at state oil
company PDVSA familiar with the case told Reuters that, factoring interest into the ICSID-ordered compensation, the final
amount would be reduced to roughly $1 billion. PDVSA took over Exxon’s operations under the nationalization.” [Reuters,
10/10/14]
EXXON HAS NOT OPERATED IN VENEZUELA SINCE
Exxon Has Not Operated In Venezuela Since 2007. According to the New York Times, “Mr. Tillerson’s first big overseas
test came soon after he became Exxon Mobil’s chief executive in 2006, when he confronted the government of Venezuela
head-on — and suffered the consequences. The company had worked in Venezuela for decades, but then-President Hugo
Chávez, calling for a Socialist-inspired revolution to benefit the poor, began renegotiating the industry’s contracts. By 2007,
the Venezuelan government set its sights on projects that included oil industry titans like Exxon Mobil, Chevron and Total.
Foreign companies soon began cooperating with Mr. Chávez’s government, but Exxon Mobil and another company,
ConocoPhillips, balked at the changes. ‘From the very beginning, Exxon sent strong signals that they would not be run over,
they would use all their legal rights, and they would be more confrontational,’ said Francisco Monaldi, a former consultant for
Venezuela’s state oil company, PDVSA. In response, Venezuela expropriated the assets of both companies. Exxon Mobil took
Venezuela to an arbitration court, and got a disappointing outcome. In 2014, seven years after the dispute began, the World
Bank’s international arbitration court found in the company’s favor, but awarded only about one-tenth of what Exxon Mobil
said the assets were worth. The company has not operated in Venezuela since. ‘In my opinion, he took it very personal with
Chávez,’ said Ghassan Dagher, a Venezuelan oil industry consultant, adding that Mr. Tillerson ‘fell into the trap completely.’”
[New York Times, 12/13/16]
2009: XTO Energy Merger
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2007: TILLERSON SAID EXXON WAS LOOKING FOR A BIG DEAL, WHICH SOME
THOUGHT MEANT BUYING CHEVRON
2007: Rex Tillerson Told Credit Suisse Exxonmobil Prepared To Do A Large Deal “When The Time Is Right,”
Which Credit Suisse Said It Thought Meant Acquiring Chevron. According to Platts Oilgram News, “ExxonMobil
appears to be prepared for a big transaction ‘when the time is right,’ its CEO said August 15, according to investment bank
Credit Suisse. The bank added that one potential target could be rival major Chevron. In a 90-minute interview with the
investment bank in New York City, Rex Tillerson ‘seemed very keen to stress ExxonMobil’s openness and even its desire to
do a large deal in the public markets ‘when the time is right,’ Credit Suisse said in the report. It did not provide specifics. Any
deal would need to be ‘material enough to be worth the pain of the inevitably difficult regulatory process which would ensue,’
the report said. Credit Suisse said it believes ExxonMobil’s ‘preferred target’ would be Chevron. ‘We think that deal is a
possibility before the end of the decade,’ the report add-ed.” [Platts Oilgram News, 8/16/07]
DECEMBER, 2009: EXXON ANNOUNCED AGREEMENT TO BUY FORT WORTH
BASED NATURAL GAS PRODUCER XTO ENERGY INC. FOR $41 BILLION
Exxon Mobil Corp. agreed to buy Forth Worth natural gas producer XTO Energy Inc. for $41 billion in stock and
assumed debt. According to Daily Deal/The Deal, “What started as a casual dinner between two oil and gas company
executives just a few months ago resulted in the fourth-largest deal announced this year and the eighth-largest deal ever in the
energy and power sector. In a huge bet on natural gas, Irving, Texas, oil and gas giant Exxon Mobil Corp. agreed Monday to
buy Forth Worth natural gas producer XTO Energy Inc. for $41 billion in stock and assumed debt to boost its exposure to
unconventional resources.” [Daily Deal/The Deal, 12/14/09]
XTO Deal Was Exxon’s Largest Since Purchasing Mobil
Exxon Mobil’s $41 Billion Purchase Of Natural Gas Corporation XTO Energy Was Its Largest Acquisition Since
Merger With Mobil Oil Co. According to Daily Deal/The Deal, “Exxon Mobil Corp.’s proposed $41 billion purchase of
natural gas company XTO Energy Inc. is the company’s biggest deal since buying rival Mobil Oil Co. a decade ago. To close
the previous deal, Exxon was forced into an arduous antitrust review before winning government approval. Antitrust clearance
isn’t expected to be anywhere near as difficult this time because it is buying an upstream oil and natural gas supplier, not a
direct competitor. The Federal Trade Commission nevertheless is expected to take its time completing the review, in large part
because U.S. antitrust regulators are put-ting more emphasis on examining vertical deals.” [Daily Deal/The Deal, 12/14/09]
EXXON’S PURCHASE OF XTO ENERGY MADE EXXONMOBIL THE LARGEST
NATURAL GAS PRODUCER IN THE U.S.
ExxonMobil’s Purchase Of XTO Energy Made ExxonMobil The Largest Natural Gas Producer In The U.S.
According to Natural Gas Week, “Even though producers have been redirecting their drilling activities away from natural gas
and toward liquids-prone plays in North America, some of the biggest transactions of late have nonetheless been gas-heavy
deals. The largest acquisition by far has been Exxon Mobil’s recently completed purchase of XTO Energy. The $36 billion
stock and debt-assumption deal makes Exxon the largest natural gas producer in the US for the first time since 1988 with pro
forma second quarter output exceeding 3.7 billion cubic feet per day ( NGW Aug.2,p5 ).” [Natural Gas Week, 9/13/10]
Following Merger, 45% of Exxon’s Production Becomes Natural Gas
Natural Gas Represented 45% Of Exxon-XTO’s Combined Production. According to The Advertiser, “Exxon Mobil
chief Rex Tillerson said the company valued XTO for its expertise in ‘unconventional’ natural gas drilling - including shale gas,
coal bed methane and ‘tight gas’ locked in non-porous rock. XTO’s unconventional gas holdings, all in the US, complement
Exxon Mobil’s international presence. Natural gas will represent 45 per cent of the companies’ combined production.” [The
Advertis-er, 12/16/09]
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EXXON’S ACQUISITION IS CONSIDERED “A HUGE BET ON NATURAL GAS” BY
THE COMPANY OVER TRADITIONAL ENERGY SOURCES LIKE COAL
Daily Deal: Exxon Mobil’s Purchase Of XTO Energy Was “A Huge Bet On Natural Gas.” According to Daily
Deal/The Deal, “What started as a casual dinner between two oil and gas company executives just a few months ago resulted
in the fourth-largest deal announced this year and the eighth-largest deal ever in the energy and power sector. In a huge bet on
natural gas, Irving, Texas, oil and gas giant Exxon Mobil Corp. agreed Monday to buy Forth Worth natural gas producer XTO
Energy Inc. for $41 billion in stock and assumed debt to boost its exposure to unconventional resources.” [Daily Deal/The
Deal, 12/14/09]
Guardian: “With Natural Gas Prices Languishing At Historic Lows, The Deal Is A Sign That Exxon Sees Long-
Term Prospects In Gas As An Alternative To Coal.” According to Guardian.Com, “ ‘XTO’s strengths, together with
Exxon Mobil’s advanced R&D and operational capabilities, global scale and financial capacity, should enable development of
additional supplies of unconventional oil and gas resources, benefiting consumers both here in the US and around the world,’
said Tillerson. With natural gas prices languishing at historic lows, the deal is a sign that Exxon sees long-term prospects in gas
as an alternative to coal. Once the deal is wrapped up, Exxon said it would establish a new upstream organisation to manage
so-called ‘unconventional’ resources which were once regarded as too inaccessible to tap cost-effectively.” [Guardian.Com,
12/14/09]
Los Angeles Times: The Exxon-XTO Merger Was “A ‘Game-Changer’ That Could Shift The U.S. Energy Mix.”
According to Los Angeles Times, “The wager by the nation’s largest oil company positions Exxon Mobil to thrive in a world
where petroleum, its key product, is getting tougher to come by. The deal is a ‘game-changer’ that could shift the U.S. energy
mix while reducing carbon emissions, said oil expert Daniel Yergin, author of ‘The Prize: The Epic Quest for Oil, Money &
Power.’ Natural gas burns cleaner than oil or coal and is expected to be in particular demand as restrictions are tightened on
the release of greenhouse gases. ‘These are not only very large domestic resources,’ Yergin said. ‘They are also low-carbon
energy resources.’ Exxon’s purchase of Fort Worth-based XTO Energy Inc. will be an all-stock deal. Exxon, of Irving, Texas,
will also assume $10 billion of XTO’s debt.” [Los Angeles Times, 12/15/09]
Following the XTO Deal, Tillerson Expressed Interest In Further Acquisitions of Natural Gas Holdings
Rex Tillerson Was Interested In More Acquisitions Of Natural Gas Holdings. According to Daily Deal/The Deal,
“Following Exxon Mobil’s $41 billion acquisition of XTO Energy, several stocks of unconventional gas explorers jumped 5%
to 7% on the news that their prospects may be improving and that they may also be takeover targets, including EOG
Resources Inc., Southwestern Energy Co., Petrohawk Energy Corp., EnCana Corp., Devon Energy Corp., Chesapeake Energy
Corp. and Anadarko Petroleum Corp. The deal could lead Royal Dutch Shell plc, BP plc or Chevron Corp. to also get into the
game. Exxon CEO Rex Tillerson said he would even be interested in doing another acquisition in the area. ‘We’re always
looking, we’re very deliberate in how we look and we’re always ready. We would consider looking at other things that are
attractive.’” [Daily Deal/The Deal, 12/14/09]
MANY CONSIDERED IMPENDING CARBON REGULATIONS AS A MAJOR
FACTOR IN EXXON’S PURCHASE
Tillerson Decided To Buy Natural Gas Giant, XTO Because Impending Carbon Regulations Would Hurt Coal And
Prove To Make Natural Gas More Profitable. According to Private Empire: ExxonMobil and American Power, “Tillerson said
he decided to buy XTO in part because ExxonMobil ‘s corporate planning department forecasted rising natural gas demand.
Climate change legislation in Congress was collapsing, and it was not easy to see when it might be revived, but in the medium
run, higher carbon prices imposed by regulators-as already had been laid down in Europe and announced in Australia -still
seemed very likely. If enacted, they would hurt coal and help natural gas. Mandates in the United States for more renewable
energy such as wind and solar power also complemented natural gas investments because gas-fired electric plants could
address, with relatively low emissions, the ‘intermittency’ problem posed by renewables.” [Private Empire: ExxonMobil and
American Power, pg. 589, 2012]
XTO DEAL LEADS TO SELL-OFF OF EXXON STOCK
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ExxonMobil Stockholders Sold Off $33 Billion In ExxonMobil Shares Following Rex Tillerson’s Purchase Of XTO
In December 2009. According to Reuters, “When Exxon chief Rex Tillerson offered US$31-billion for XTO in December
2009, he must have known he was risking investor disappointment. For shareholders accustomed to a constant stream of
buybacks and dividend increases, the issuance of new shares was an unwelcome interruption. Still the scale of discontent has
been surprising. Shareholders have now wiped about US$33-billion off the value of Exxon since the deal was announced --
more than XTO’s entire value. Take into account the rise in its peer group and the weakness is even more striking. Exxon has
now lagged the resurgent ConocoPhillips Ltd. since December and is even behind Chevron Corp.” [Reuters, 10/29/10]
Investors Criticized The Deal
2010: ExxonMobil’s Purchase Of XTO Energy Was Called “Controversial” By The Times. According to The Times,
“The acquisition of XTO Energy has been controversial for Exxon, though, with some investors critical because a glut of gas
supplies has prompted a drop in prices. Rex Tillerson, the Exxon chief executive, said: ‘Despite continuing economic
uncertainty we had strong quarterly results and continued to advance our robust investment opportunities.’” [The Times,
10/29/10]
2010-2013: Kurdistan Deal
MARCH 2011: TILLERSON TELLS CNBC EXXON HAS “TREMENDOUS
OPPORTUNITIES AHEAD OF US IN IRAQ”
Tillerson On Opportunities For Oil Development: “I Think There Are Tremendous Opportunities Ahead Of Us In
Iraq.” “Host: I’m curious what you think the single biggest opportunity is right now and has that changed because of the great
instability in the Middle East? Rex Tillerson: In the Middle East or globally? Host: I guess both. Tillerson: Yeah. Well, in the
Middle East, the Middle East is still the place where the largest undeveloped resources of oil are located, conventional oil. I
think there are tremendous opportunities ahead of us in Iraq as Iraq continues to evolve its government and things continue
their path to stability. They have tremendous resources that are yet to be developed, tremendous resources that are yet to be
discovered. I think the same can be said for Abu Dhabi, a lot of resources yet to be developed with exploration potential.”
[“Squawk Box,” CNBC, 3/9/11; 110309_MM_96476]
NOVEMBER 2011: LEAKED THAT EXXON HAS SIGNED EXPLORATION
CONTRACT WITH KURDISTAN REGIONAL GOVERNMENT
Kurdistan Regional Government (KRG) Adviser Told Financial Times That Exxon Had Signed Contracts With
KRG To Explore For Oil In The Kurdistan Region. According to The Financial Times, “ExxonMobil has become the
first of the ‘supermajor’ oil companies to venture into Kurdistan, in a controversial move that will be seen as a huge vote of
confidence in the semi-autonomous region of Iraq but could spark a backlash in Baghdad. Exxon, the largest international oil
company, signed contracts with the Kurdistan Regional Government (KRG) last month to explore for oil and gas in six blocks
in the region, according to an adviser to the KRG. ‘The KRG has for the last few months been in discussions with a number
of major oil companies. This resulted in the recent signing by ExxonMobil of contracts to explore in six blocks,’ Michael
Howard, an adviser to the KRG, told the Financial Times. Iraq’s central government has been informed of the agreements,
said another person familiar with the situation. ExxonMobil declined to comment.” [Financial Times, 11/10/11]
Exxon Does Not Formally Confirm The Agreement Until February The Following Year. According to The
International Business Times, “After months of silence, ExxonMobil executives confirmed the company’s exploration
deal with the semi-autonomous Kurdish Government in Northern Iraq. An executive report released Friday said
ExxonMobil, the No. 1 U.S. energy company, will explore for oil and natural gas in the region for five years and will
have the opportunity for two-year extensions. The company also has a 20-year production contract with the option to
extend it for five years, MarketWatch reported. Shares of Houston-based ExxonMobil rose 11 censt to $87.47 in late
morning trading Monday, valuing the company at $414 billion, the second most valuable after Apple’s $488 billion.”
[International Business Times, 2/27/12]
127

Rex Tillerson Met With Iraqi Prime Minister Nuri Al-Maliki And Pledged To Reconsider Its Contracts In
Kurdistan. According to Platts Oilgram News, “ExxonMobil has pledged to reconsider an exploration deal it signed
in October for six blocks in the northern Iraqi region of Kurdistan, Iraq’s deputy prime minister with responsibility
for energy, Hussain al-Shahristani, said December 15 in Baghdad. Shahristani said Iraqi Prime Minister Nuri al-Maliki
had recently met with ExxonMobil CEO Rex Tillerson in Washington to discuss the oil major’s Kurdistan deal, which
has been strongly criticized by Baghdad. ‘He [Maliki] has met with him [Tillerson], and ExxonMobil has promised to
reconsider the contracts. I haven’t heard from the prime minister directly what the commitment from Tillerson to him
was,’ Shahristani told Platts.” [Platts Oilgram News, 12/16/11]
BOTH BAGHDAD AND WASHINGTON WERE FURIOUS AT EXXON OVER
CONTRACT WITH THE KURDS
The Iraqi Government Rebuked Exxon For Their Exploration Agreement With Kurdistan And Stated That The
Deal Would Remain Illegal Until Long-Awaited Rules Can Be Worked Out To Split Revenues Among Iraq’s
Regions. According to The New York Times, “A deputy prime minister overseeing the oil industry has issued a sharp rebuke
to the largest American oil company operating in Iraq, Exxon Mobil, over the company’s reported efforts to expand its oil
holdings into the semiautonomous Kurdish region in the country’s north. The statement from the official, Hussein al-
Shahristani, said the central government had cautioned Exxon against pursuing oil deals in Kurdistan, which the government
says will remain illegal until long-awaited rules can be worked out to split revenues among Iraq’s fractious regions. Mr.
Shahristani’s office issued the statement a day after The Financial Times reported that Exxon, based in Irving, Tex., and the
United States’ largest petroleum company, had become the first major international oil operator to sign a contract in the
Kurdistan region — a move the company has neither confirmed nor denied. If Exxon did indeed sign a deal in Kurdistan, it is
wading into a central controversy that has dogged Iraq since the American invasion.” [New York Times, 11/12/11]
The Iraqi Prime Minister Wrote A Letter To President Obama Demanding He Stop Exxon’s Contract With
Kurdistan. According to Reuters, “When news of the deal leaked in early November 2011, both Baghdad and
Washington were furious. Maliki wrote a letter to President Barack Obama demanding he push Exxon to scrap the
deal. Iraq’s deputy prime minister for energy affairs summoned Exxon executives to explain. To Washington, the deal
was an embarrassment. The U.S. strategy was built on support for Maliki and its ‘one Iraq’ policy of a unified nation
under a strong central government. Now one of America’s most powerful corporations had undermined that
approach. A former U.S. diplomat told Reuters the U.S. government had less than a day’s notice of Exxon’s deal. U.S.
Ambassador to Iraq James Jeffrey was livid, said the former diplomat. ‘My understanding is that (Jeffrey) dropped a
few F-bombs,’ he said. ‘He was less than amused.’” [Reuters, 12/3/14]
Exxon Defied The U.S. Government And Privately Made Deals In Kurdistan, Which Felt Oil Deals Struck
Independently With The Kurds Would Worsen Iraq’s Ethnic Conflicts. According to Private Empire: ExxonMobil and
American Power, “In Iraq, ExxonMobil followed adventurous Hunt Oil into Kurdistan, in defiance of Baghdad’ s government
and despite discouragement from the Obama administration, which feared, as the Bush administration had, that oil deals
struck independently with the Kurds would worsen Iraq’s ethnic conflicts. ExxonMobil ‘s decision risked stirring the ire of
Iraq’s Shia-led national government, which had awarded the corporation a con­ tract to raise production in its massive West
Qurna field in the south of the country.” [Private Empire: ExxonMobil and American Power, pg. 622, 2012]
IRAQI THREATENS TO TERMINATE ITS QURNA DEVELOPMENT CONTRACT
WITH EXXON IF IT DOES NOT PULL OUT OF KURDISH DEAL
Tillerson’s Decision Risked Exxon’s Loss Of Its Contract With The Iraqi Government To Develop The West Qurna
Field In The South Of The Country. According to Private Empire: ExxonMobil and American Power, “In Iraq, ExxonMobil
followed adventurous Hunt Oil into Kurdistan, in defiance of Baghdad’ s government and despite discouragement from the
Obama administration, which feared, as the Bush administration had, that oil deals struck independently with the Kurds would
worsen Iraq’s ethnic conflicts. ExxonMobil ‘s decision risked stirring the ire of Iraq’s Shia-led national government, which had
awarded the corporation a con­ tract to raise production in its massive West Qurna field in the south of the country.” [Private
Empire: ExxonMobil and American Power, pg. 622, 2012]
128

Iraqi Oil Minister Abdul Karim Al-Luaibi On Exxon’s Request To Operate In Both Iraq And The Kurdistan
Region: “For Any Company That Signs Contracts Without The Approval Of The Central Government, We
Will Not Deal With Them.” According to Platts Oilgram News, “Iraqi oil minister Abdul Karim al-Luaibi said
January 27 that ExxonMobil would not be allowed to operate in both Iraq and the semi-autonomous Kurdish
province and that he expected the US major to announce its choice within the next few days. Luaibi’s comments
represent the latest move in what has become a high-risk tug of war over oil resources between the central
government and the semi-autonomous Kurdish province with foreign oil majors caught in the middle. ‘For Exxon,
our demand is clear, not only for Exxon, but for all others,’ Luaibi told reporters in Baghdad with reference to foreign
oil companies that have signed upstream production sharing contracts with the Kurdistan Regional Government
(KRG). ‘For any company that signs contracts without the approval of the central government, we will not deal with
them. Exxon and others have been informed of this decision. In fact, in the next coming days, there will be a final
decision from Exxon related to this issue,’ he added. ‘It is up to ExxonMobil to decide.’ The latest development
follows a series of meetings that ExxonMobil CEO Rex Tillerson has held in the past week both in Baghdad and on
the sidelines of the Davos Economic Forum with senior Iraqi and Kurdish officials.” [Platts Oilgram News, 1/29/13]
Rex Tillerson’s Request That ExxonMobil Be Allowed To Operate In Both Iraq And The Kurdistan Region Was
Denied By The Iraqi Government. According to Platts Oilgram News, “Iraqi oil minister Abdul Karim al-Luaibi said
January 27 that ExxonMobil would not be allowed to operate in both Iraq and the semi-autonomous Kurdish province and
that he expected the US major to announce its choice within the next few days. Luaibi’s comments represent the latest move
in what has become a high-risk tug of war over oil resources between the central government and the semi-autonomous
Kurdish province with foreign oil majors caught in the middle. ‘For Exxon, our demand is clear, not only for Exxon, but for
all others,’ Luaibi told reporters in Baghdad with reference to foreign oil companies that have signed upstream production
sharing contracts with the Kurdistan Regional Government (KRG). ‘For any company that signs contracts without the
approval of the central government, we will not deal with them. Exxon and others have been informed of this decision. In
fact, in the next coming days, there will be a final decision from Exxon related to this issue,’ he added. ‘It is up to ExxonMobil
to decide.’ The latest development follows a series of meetings that ExxonMobil CEO Rex Tillerson has held in the past week
both in Baghdad and on the sidelines of the Davos Economic Forum with senior Iraqi and Kurdish officials.” [Platts Oilgram
News, 1/29/13]
Ultimately, Iraq Does Not Follow Through On Its Threat
The Iraqi Government Ultimately Did Not Cancel Its Qurna Contract With Exxon. According to Reuters, “In January
2013, Exxon CEO Tillerson made his first and so far only visit to Iraq, traveling to Baghdad to mend fences with the central
government. It isn’t clear what happened in that meeting, but Baghdad has not canceled its own contract with the Texas firm.
Arbil has even built a pipeline to Turkey, which makes it easier to export its oil. The Iraqi capital remains riven by strife, but
things are looking up for Exxon. The firm’s main Iraqi critics – Maliki and two other senior politicians – were pushed from
power this year in elections. The men who replaced them are more amenable to a compromise, as this week’s agreement with
Arbil shows. Khedery, who has since set up his own consultancy, is not surprised. ‘I think for Exxon,’ he said, ‘with their 125
years in business, the opposition from Maliki was simply seen as something that could be managed and eventually mitigated.’”
[Reuters, 12/3/14]
TILLERSON DEFIED U.S. GOVERNMENT POLICY AND INFURATED IRAQI
GOVENRMENT IN MAKING PRIVATE DEAL WITH KURDS
New York Times: Rex Tillerson “Defied State Department Policy And Cut An Independent Oil Deal With The
Kurdish Regional Government, Undermining The National Iraqi Government In Baghdad.” According to the New
Yorker, “In Kurdistan, during the Obama Administration, Tillerson defied State Department policy and cut an independent oil
deal with the Kurdish Regional Government, undermining the national Iraqi government in Baghdad. ExxonMobil did not ask
permission. After the fact, Tillerson arranged a conference call with State Department officials and explained his actions,
according to my sources, by saying, ‘I had to do what was best for my shareholders.’” [New Yorker, 12/11/16]
EXXON’S DECISION TO SIGN DEAL WITH KURDS FURTHERED KURDISH
GOAL OF AN INDEPENDENT STATE
129

Exxon’s Agreement With The Kurdistan Regional Government Undermined The Goal Of “One Iraq” Eliminating
Iraqi Kurdistan’s Dependence On Iraq’s Shared Oil Revenue. According to Reuters, “Despite the anger, the deal was a
political triumph for the Kurds. Exxon had shown Arbil could attract oil majors regardless of what Baghdad thought.
Hawrami unveiled the deal at an Arbil energy conference in late 2011. Kurdistan had initially signed contracts with ‘small and
beautiful’ companies, he said. Now it was working with ‘the giant and magnificent.’ Within a few months, both Chevron and
Total signed deals, further strengthening Kurdistan. A pact with Russia’s Gazprom followed. ‘What really binds Kurdistan to
Baghdad is money,’ said Robert Ford, who retired from his post as U.S. ambassador to Syria in February and previously served
three stints for the State Department in Iraq. ‘The more the Kurds have an independent source of income, especially from
energy, the more it feeds into their desire to establish greater autonomy if not independence from Baghdad.’” [Reuters,
12/3/14]
Exxon’s Contract With The Kurdistan Regional Government Quickly Led To Contracts Between KRG And
Chevron, Total, And Gazprom Outside Of The Iraqi Central Government. According to Reuters, “Despite the
anger, the deal was a political triumph for the Kurds. Exxon had shown Arbil could attract oil majors regardless of
what Baghdad thought. Hawrami unveiled the deal at an Arbil energy conference in late 2011. Kurdistan had initially
signed contracts with ‘small and beautiful’ companies, he said. Now it was working with ‘the giant and magnificent.’
Within a few months, both Chevron and Total signed deals, further strengthening Kurdistan. A pact with Russia’s
Gazprom followed. ‘What really binds Kurdistan to Baghdad is money,’ said Robert Ford, who retired from his post
as U.S. ambassador to Syria in February and previously served three stints for the State Department in Iraq. ‘The
more the Kurds have an independent source of income, especially from energy, the more it feeds into their desire to
establish greater autonomy if not independence from Baghdad.’” [Reuters, 12/3/14]
Exxon’s Decision To Invest In Kurdistan “Infuriated Both Washington And Baghdad, And Helped Propel
Kurdistan Closer To Its Long-Held Goal Of Independence.” According to Reuters, “Less than a year later, Exxon signed
a deal with Kurdistan. The story of how that happened explains much about the would-be nation's growing power. Interviews
with key players in the secret 2011 negotiations - the talks involved not just Exxon but also fellow Western oil giant Royal
Dutch Shell - show how Exxon's decision to invest infuriated both Washington and Baghdad, and helped propel Kurdistan
closer to its long-held goal of independence.” [Reuters, 12/3/14]
Reuters: “The Exxon Deal Fueled Kurdish Self-Belief.” According to Reuters, “The Exxon deal fueled Kurdish selfbelief.
The presence of the biggest U.S. oil company has helped not just financially but also politically and even
psychologically.” [Reuters, 12/3/14]
Independent Kurdistan At Odds With U.S. Foreign Policy
Kurdish Independence Has Been Opposed By Washington, Baghdad, And Turkey And It Remains Unclear
Whether The Kurds Have The Strength To Stand Alone. According to Reuters, “Despite the deal, Kurdistan's path to
nationhood is far from certain. Independence is opposed by Washington, Baghdad, neighboring Turkey and Iran. It also
remains unclear whether the Kurds have the strength to stand alone in this volatile region.” [Reuters, 12/3/14]
TILLERSON DID NOT EXPRESS REGRET FOR UNDERMINING U.S. INTERESTS
Concerning Deals Made Secretly With Kurdistan, Tillerson Told The U.S. Government, “I Had To Do What Was
Best For My Shareholders.” According to Private Empire: ExxonMobil and American Power, “Tillerson undertook his gambit
without informing the Obama administration in advance. After ExxonMobil signed agreements concerning six Kurdish oil
fields, Tillerson arranged a conference call with senior State Department officials, and told them, ‘I had to do what was best
for my shareholders.’” [Private Empire: ExxonMobil and American Power, pg. 623, 2012]
2011 – Present: Rosneft Partnership
JANUARY 2011: EXXON SIGNED BLACK SEA DEVELOPMENT AGREEMENT
WITH ROSNEFT
130

2011: Under Rex Tillerson, ExxonMobil Reached An Agreement With State-Owned Russian Oil Company Rosneft
To Develop Hydrocarbon Resources In The Black Sea. According to Russian Oil Refining Industry, “OJSC ‘NK’ Rosneft
‘company, and ExxonMobil have reached an agreement on joint development of hydrocarbon resources of the Russian shelf
of the Black Sea. […] Chairman of the Board of Directors, ExxonMobil CEO Rex Tillerson, who was also present at the
signing ceremony, said that his company is ‘pleased to be able to expand cooperation with’ Rosneft ‘for the benefit of the
development of Russia’s energy sector.’ ‘Of ExxonMobil will complement the existing company ‘Rosneft’ advantages and
experience in this region, bringing to the project its technological leadership, high quality jobs and new technologies’, - said R.
Tillerson. - We already have a successful experience of cooperation with ‘Rosneft’ in the ‘Sakhalin-1’ project. We intend to
expand these relations in order to meet the Russian and the whole Black Sea region’s energy needs.’” [Russian Oil Refining
Industry, 1/27/11]
2011: Rex Tillerson On Rosneft-ExxonMobil Black Sea Agreement: “We Will Build On The Successful
Relationship We Have With Rosneft […] To Help Meet Energy Needs In Russia And The Wider Black Sea
Area.” According to Platts Oilgram News, “The ExxonMobil deal, which was signed by Rosneft President Eduard
Khudainatov and ExxonMobil Development Company President Neil Duffin during the World Economic Forum in
Davos, Switzerland, goes beyond just exploration in the Black Sea. […] ExxonMobil Chairman and CEO Rex
Tillerson, who also attended the ceremony, said his company welcomed the opportunity to expand its activities with
Rosneft for the benefit of Russian energy development. ‘ExxonMobil will bring its technology, project execution
capabilities and innovation to complement Rosneft’s strengths and experience in the region,’ Tillerson said. ‘We will
build on the successful relationship we have with Rosneft through the Sakhalin 1 project to help meet energy needs in
Russia and the wider Black Sea area.’” [Platts Oilgram News, 1/28/11]
2011: Rex Tillerson On Rosneft-ExxonMobil Black Sea Agreement: “ExxonMobil Will Bring Its
Technology, Project Execution Capabilities And Innovation To Complement Rosneft’s Strengths And
Experience In The Region.” According to Platts Oilgram News, “The ExxonMobil deal, which was signed by
Rosneft President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin during the
World Economic Forum in Davos, Switzerland, goes beyond just exploration in the Black Sea. […] ExxonMobil
Chairman and CEO Rex Tillerson, who also attended the ceremony, said his company welcomed the opportunity to
expand its activities with Rosneft for the benefit of Russian energy development. ‘ExxonMobil will bring its
technology, project execution capabilities and innovation to complement Rosneft’s strengths and experience in the
region,’ Tillerson said. ‘We will build on the successful relationship we have with Rosneft through the Sakhalin 1
project to help meet energy needs in Russia and the wider Black Sea area.’” [Platts Oilgram News, 1/28/11]
As Part Of The Exxon-Rosneft Black Sea Development Agreement, Exxonmobil And Rosneft Agreed To Share In
The Profits Of Any Oil Discovered. According to The New York Times, “The Exxon-Rosneft agreement commits Exxon
to spend about $1 billion looking for oil off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is
discovered. But Russian authorities have reneged on deals with Exxon in the past. Desperate for investments when oil prices
sank in the 1990s, Russia agreed to give Exxon generous terms that exempted it from most taxes and allowed it to sell much
of the oil it prospected. But in recent years, local authorities have interfered in operations. In the early 2000s, Exxon was intent
on acquiring a large stake in Yukos, once Russia’s largest private oil company. But those efforts fell apart in 2003 when the
Kremlin arrested Yukos’s main shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated
effort to transfer Yukos assets to the state oil company, Rosneft.” [The New York Times, 1/28/11]
The Exxon-Rosneft Black Sea Development Agreement Committed Exxon To Spend $1 Billion Looking For Oil Off
Of Russia’s Black Sea Coast. According to The New York Times, “The Exxon-Rosneft agreement commits Exxon to
spend about $1 billion looking for oil off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is
discovered. But Russian authorities have reneged on deals with Exxon in the past. Desperate for investments when oil prices
sank in the 1990s, Russia agreed to give Exxon generous terms that exempted it from most taxes and allowed it to sell much
of the oil it prospected. But in recent years, local authorities have interfered in operations. In the early 2000s, Exxon was intent
on acquiring a large stake in Yukos, once Russia’s largest private oil company. But those efforts fell apart in 2003 when the
Kremlin arrested Yukos’s main shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated
effort to transfer Yukos assets to the state oil company, Rosneft.” [The New York Times, 1/28/11]
Exxon Previously Partnered With Rosneft To Develop Sakhalin-1
131

2011: Rex Tillerson Noted During The Signing Of The Exxon-Rosneft Black Sea Development Agreement That
Exxon “Already Have A Successful Experience Of Cooperation With ‘Rosneft’ In The ‘Sakhalin-1’ Project.”
According to Russian Oil Refining Industry, “OJSC ‘NK’ Rosneft ‘company, and ExxonMobil have reached an agreement on
joint development of hydrocarbon resources of the Russian shelf of the Black Sea. […] Chairman of the Board of Directors,
ExxonMobil CEO Rex Tillerson, who was also present at the signing ceremony, said that his company is ‘pleased to be able to
expand cooperation with’ Rosneft ‘for the benefit of the development of Russia’s energy sector.’ ‘Of ExxonMobil will
complement the existing company ‘Rosneft’ advantages and experience in this region, bringing to the project its technological
leadership, high quality jobs and new technologies’, - said R. Tillerson. - We already have a successful experience of
cooperation with ‘Rosneft’ in the ‘Sakhalin-1’ project. We intend to expand these relations in order to meet the Russian and
the whole Black Sea region’s energy needs.’” [Russian Oil Refining Industry, 1/27/11]
AUGUST 2011: EXXON SIGNED STRATEGIC COOPERATION AGREEMENT WITH
ROSNEFT
August 2011: Exxon And Rosneft Entered Into A Wide-Reaching “Strategic Cooperation Agreement” Under Which
The Companies Would Undertake Joint Exploration And Development Projects Throughout The World. According
to Business Wire, “Rosneft and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies
plan to undertake joint exploration and development of hydrocarbon resources in Russia, the United States and other
countries throughout the world, and commence technology and expertise sharing activities. The agreement, signed by Rosneft
President Eduard Khudainatov and ExxonMobil Development Company President Neil Duffin in the presence of Russian
Prime Minister Vladimir Putin, includes approximately US $3.2 billion to be spent funding exploration of East
Prinovozemelskiy Blocks 1, 2 and 3 in the Kara Sea and the Tuapse License Block in the Black Sea, which are among the most
promising and least explored offshore areas globally, with high potential for liquids and gas. In the course of these projects,
the companies will use global best practices to develop state-of-the-art safety and environmental protection systems. The
agreement also provides Rosneft with an opportunity to gain equity interest in a number of ExxonMobil’s exploration
opportunities in North America, including deep-water Gulf of Mexico and tight oil fields in Texas (USA), as well as additional
opportunities in other countries. The companies have also agreed to conduct a joint study of developing tight oil resources in
Western Siberia. The companies will create an Arctic Research and Design Center for Offshore Developments in St.
Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and
Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and
ice-class drilling platforms, as well as other Rosneft projects.” [Business Wire, 8/30/11]
Rex Tillerson On Rosneft Deal: “This Agreement Takes Our Relationship To A New Level And Will Create
Substantial Value For Both Companies.” According to Daily Deal/The Deal, “Exxon Mobil Corp. and Russia’s
OAORosneft on Tuesday, Aug. 30, signed a strategic agreement and unveiled plans to invest an initial $3.2 billion in an
exploration joint venture that will prospect for crude oil in Russia’s Kara and Black seas. […] Exxon chief executive Rex
Tillerson said in a statement. ‘This agreement takes our relationship to a new level and will create substantial value for both
companies.’ Russia’s prime minister, Vladimir Putin, who was present at the signing of the deal in Sochi, a resort town on the
coast of the Black Sea, said that the partners might eventually invest as much as $500 billion to develop the oilfields. Exxon
and Rosneft are not strangers to each other. They have worked together for the past 15 years to develop the Sakhalin-1 project
in Russia’s North Pacific territory, which is 30% owned by Exxon and 20% by Rosneft-controlled companies.” [Daily
Deal/The Deal, 8/30/11]
In 2011, Tillerson Struck A Deal With Rosneft, Hailed By Putin Ally Igor Sechin And Chairman Of Rosneft As A
“Giant Leap Forward… More Ambitious Than Man's First Walk In Space Or Sending A Man To The Moon.”
According to CNN, “Tillerson's biggest deal in Russia was announced in 2011 with Rosneft. The companies were focused on
drilling for oil in three key Russian regions: the Arctic, the deepwaters of the Black Sea, and Siberia. In 2012, Igor Sechin, a
close ally of Putin and chairman of Rosneft, hailed the partnership as a ‘giant leap forward’ and argued it's ‘more ambitious
than man's first walk in space or sending a man to the moon.’” [CNN, 12/11/16]
Before It Was Blocked By Sanctions, Vladimir Putin Called The Rosneft Deal “One Of The Most Important
Involving Russia And The U.S.,” Forecasting It Could Generate $500 Billion. According to the Wall Street Journal,
“The deal would have been transformative for Exxon. Mr. Putin at the time called it one of the most important involving
Russia and the U.S., forecasting that the partnership could eventually spend $500 billion. But it was subsequently blocked by
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sanctions on Russia that the U.S. and its allies imposed two years ago after the country’s invasion of Crimea and conflicts with
Ukraine.” [Wall Street Journal, 12/6/16]
Vladimir Putin Attended the Signing Ceremony
Putin Was In Attendance At The Signing Ceremony. According to AK & M Online News, “OJSC "NK" Rosneft "and
ExxonMobil entered into a strategic cooperation agreement, under which the companies plan to jointly implement a number
of projects in the field of exploration and development of hydrocarbon deposits in Russia, the USA and other countries
around the world are beginning to work on technologies and exchange of experience. This Rosneft said in a statement. The
agreement, signed by the president of "Rosneft" Eduard Khudainatov and ExxonMobil Development Company President
Neil Duffin in the presence of the head of the Russian Federation Vladimir Putin, involves investment of about $ 3.2 billion in
exploration and development of three license areas - East Prinovozemelsky -1, -2, -3 in the Kara sea and the Tuapse license
block in the Black sea, one of the most promising and least explored offshore areas of the world. […] Chairman of the Board
and President of Exxon Mobil Corporation Rex Tillerson, who took part in the signing ceremony, said that thanks to the close
cooperation with "Rosneft", of ExxonMobil will make a valuable contribution to the development of the Russian energy
sector. "Such a large-scale partnership represents a significant strategic step for both companies," he added.” [AK & M Online
News, 8/31/11]
Putin On ExxonMobil: “It’s Very Nice That Rosneft Has Such A Reliable, Good Strategic Partner.” According to the
Times, “In a $3.2 billion deal that re-drew global energy politics, BP’s American rival agreed to help Rosneft to explore the
same blocks in the Arctic that BP had coveted in an Anglo-Russian tie-up that fell apart three months ago. In return, Rosneft
is set to become the first major Russian oil company to produce oil in the United States when it is granted stakes in Exxon
Mobil’s exploration projects in the Gulf of Mexico and Texas. Rex Tillerson, Exxon’s chief executive, travelled to Vladimir
Putin’s summer residence on the Black Sea to sign the deal in an official ceremony. The Russian Prime Minister took a
sideswipe at BP, whose proposed alliance with Rosneft was left in tatters in May after its existing partners in Russia blocked
the deal. ‘It’s very nice that Rosneft has such a reliable, good strategic partner,’ he said.” [Times, 8/31/11]
Tillerson Was Given Assurances The Strategic Cooperation Agreement Would Be Conducted Under A Special Tax Regime
Rex Tillerson Received Assurances From The Russian Government That The Rosneft Deal Would Be Conducted
Under A Special Tax Regimen. According to Vedomosti via BBC Monitoring Former Soviet Union, “The first round of
negotiations between the companies had no result: Already in 2010, Exxon had refused participation in joint development of
the Arctic shelf, referring to the expense of the project. Yesterday at a meeting with Putin, the general director of the
American company, Rex Tillerson, received assurances to the effect that the project would be implemented in a special tax
regimen, explains a source close to Rosneft. Its parameters have not yet been defined, but Rosneft has proposals in this regard,
says a source close to the state holding.” [Vedomosti via BBC Monitoring Former Soviet Union, 9/2/11]
Rex Tillerson Said Putin’s Move To Abolish Duties And Reduce Mineral Extraction Taxes Led To ExxonMobil’s
Deal With Rosneft. According to Platts Oilgram News, “Tillerson said a recent decision by Russia’s President-elect Vladimir
Putin to provide a favorable fiscal regime for offshore reserves by abolishing export duty and reducing mineral extraction tax
supported the two companies’ ambitious plans to develop Russia’s offshore.” [Platts Oilgram News, 4/19/12]
Exxon and Rosneft Agreed To Spend $3.2 Billion Exploring Offshore Oil And Gas In The Russian Arctic
And Black Sea
Rosneft And Exxon’s “Strategic Cooperation Agreement Included $3.2 Billion To Be Spent Funding Exploration Of
East In The Kara Sea, In The Russian Arctic, And The Black Sea. According to Business Wire, “Rosneft and
ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint
exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world,
and commence technology and expertise sharing activities. The agreement, signed by Rosneft President Eduard Khudainatov
and ExxonMobil Development Company President Neil Duffin in the presence of Russian Prime Minister Vladimir Putin,
includes approximately US $3.2 billion to be spent funding exploration of East Prinovozemelskiy Blocks 1, 2 and 3 in the Kara
Sea and the Tuapse License Block in the Black Sea, which are among the most promising and least explored offshore areas
globally, with high potential for liquids and gas.
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Rex Tillerson And Vladimir Putin Met In Sochi To Announce $3.2 Billion Investment By Exxon And Russia’s
Rosneft To Drill In The Arctic Kara Sea, With Possible Future Investment Reaching $500 Billion. According to Private
Empire: ExxonMobil and American Power, In Russia, later that summer, Rex Tillerson flew to the Black Sea resort of Sochi to
meet with Vladimir Putin. Before television cameras, the two men sat on opposite sides of a horseshoe-shaped table and
announced a new partnership between ExxonMobil and Rosneft, the Russian oil company. The oil firms agreed to
invest at least $3.2 billion to develop oil beneath the Arctic Kara Sea; if the deal survived the backtracking and disputes
that disrupted so many other Russian oil deals, the total investment in the project could reach $500 billion . The United
States Geo­ logical Survey estimated that the Arctic held about 90 billion barrels of recoverable but undiscovered oil and
about as much natural gas as Russia’s onshore supplies, which were the world’s largest.” [Private Empire: ExxonMobil and
American Power, pg. 621, 2012]
Exxon-Rosneft’s Kara Sea Exploration Agreement Was Called A “Pet Project” Of Putin’s
Putin Said That The Total Investment From ExxonMobil And Rosneft In Joint Arctic Projects Could Reach 200 to
300 Billion Dollars. According to Kommersant via BBC Monitoring Former Soviet Union, “Prime Minister Vladimir Putin
yesterday put the total of direct investment in joint projects by Rosneft and ExxonMobil at 200-300 billion dollars, but ‘if we
are talking about infrastructure, the construction of the necessary buildings, and surface facilities, the investment could reach
500 billion dollars’. However, ExxonMobil expects its agreement with Rosneft to encourage the Russian authorities to ease the
tax regime for the industry. ‘Such steps will help the government to expand cooperation in the difficult situation that is taking
shape in Russia,’ the head of ExxonMobil, Rex Tillerson, explained.” [Kommersant via BBC Monitoring Former Soviet
Union, 9/2/11]
Exxon And Rosneft’s Joint Exploration Of Oil In The Kara Sea Was Called A “Pet Project Of Russian
President Vladimir Putin.” According to the Washington Times, “Under a joint venture with Rosneft, Russia's
sanctioned oil company, Exxon last month discovered what may be an oil field in the Kara Sea containing 750 million
barrels. The venture is a pet project of Russian President Vladimir Putin, who boasted about it and personally gave the
go-ahead for the companies to start drilling this summer.” [Washington Times, 10/1/14]
Effects of Global Warming Made The Kara Sea Exploration Project Possible
Retreating Sea Ice Due To Global Warming Made The Prospect Of Drilling In The Kara Sea More Plausible.
According to Private Empire: ExxonMobil and American Power, “Most of the Arctic’s oil and gas is believed to lie in areas
controlled by Russia. In the Kara Sea, where ExxonMobil agreed to drill, oil development has become easier because of the
rapid retreat of Arctic sea ice, most likely due to global warming. In 2011, on a typical August day, the amount of Arctic sea ice
was about 40 percent less than had been present on an average August day between 1979 and 2000.34 At the announcement in
Sochi, Vladimir Putin spoke approvingly of ExxonMobil’s ‘unique technology’ and the corporation ‘s ability to operate in the
Arctic’s ‘difficult conditions.’ As to the scale of the investment planned, Putin added, ‘It’s scary to utter such huge figures.’”
[Private Empire: ExxonMobil and American Power, pg. 621, 2012]
Exxon and Rosneft Commenced Joint Russian Arctic Operations In September 2014
Rex Tillerson Announced ExxonMobil And Rosneft Planned To Start Exploratory Drilling In The Kara Sea In 2014-
15. According to ITAR-TASS, “VLADIVOSTOK ExxonMobil Corporation and Rosneft Company are planning to start
exploratory drilling on the shelf of Kara Sea in the 2014-’15 period, ExxonMobil chief Rex Tillerson announced here on
Thursday. Tillerson said the implementation of a program to obtain technical data on the Kara Sea is proceeding ahead of
schedule and is to be completed towards the end of the current month. The Corporation is planning to set about exploratory
drilling within the assigned period, he said. Exploratory drilling is also to be launched on the Black Sea shelf within the same
period, Tillerson added.” [ITAR-TASS, 9/7/12]
Exxon And Roneft Began Drilling Their First Exploratory Well In The Kara Sea In September Of 2014. According to
Forbes, “Exxon and Rosneft expanded their 2011 strategic cooperation agreement last year to include seven new blocks in the
Russian Arctic in the Chukchi Sea, Laptev Sea and Kara Sea, spanning 600,000 sq. km. With this, both the companies agreed
to cooperate in exploring and developing new hydrocarbon reserves in an area almost 190 million acres in size stretching
almost halfway across the Arctic shoreline. 2D and 3D seismic surveys along with other data collection activities in the Kara
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Sea had been going on since then. The companies finally began drilling the first exploratory well in the multi-billion barrel
University prospect last month.” [Forbes, 10/6/14]
Exxon Agreed To Give Rosneft A Share Of Exxon’s North American Exploration Projects
Rosneft And Exxon’s “Strategic Cooperation Agreement Provided Rosneft The Opportunity To Gain Equity
Interest In A Number Of Exxonmobil’s Exploration Projects In North America. According to Business Wire, “Rosneft
and ExxonMobil have executed a Strategic Cooperation Agreement under which the companies plan to undertake joint
exploration and development of hydrocarbon resources in Russia, the United States and other countries throughout the world,
and commence technology and expertise sharing activities. […] The agreement also provides Rosneft with an opportunity to
gain equity interest in a number of ExxonMobil’s exploration opportunities in North America, including deep-water Gulf of
Mexico and tight oil fields in Texas (USA), as well as additional opportunities in other countries.” [Business Wire, 8/30/11]
Rex Tillerson: The Rosneft Deal Would “Open New Co-Operation Between Exxon And Rosneft Both In
Russia And Abroad.” According to the Daily Telegraph, “‘New horizons are opening up. One of the world’s leading
companies, ExxonMobil, is starting to work on Russia’s strategic shelf and deepwater continental shelf,’ Mr Putin said.
Exxon chief Rex Tillerson said the deal would ‘open new co-operation between Exxon and Rosneft both in Russia
and abroad’.” [Daily Telegraph, 8/31/11]
April 2012: Exxon-Rosneft Signed Follow Up Agreements Allowing Rosneft To Develop Several Exxon Projects In U.S. And
Canada
2012: Rex Tillerson And Vladimir Putin Attended The Signing Of A Package Of Agreements That Allowed Russian
State-Run Oil Company Rosneft To Develop Projects In The U.S. And Canada. “Yesterday, in Novo-Ogaryovo in the
presence of Prime Minister Vladimir Putin presidency, "Rosneft" and ExxonMobil Eduard Khudainatov and Rex Tillerson
signed a package of agreements on the second part of the transaction to create a strategic alliance. In August 2011, "Rosneft"
and ExxonMobil have agreed to jointly develop three areas Vostochnoprinovozemelskih now the Russian state company will
get in return projects in the US and Canada. "These agreements are designed for decades," - said the prime minister. Rex
Tillerson said that "negotiations are moving to a new horizon." "We have become global partners", - he said.” [Kommersant
digest via AK&M News, 4/17/12]
Rex Tillerson Announced Cooperation Between Russia’s Rosneft And Exxon Including Partnerships In West Texas
And The Gulf Of Mexico. According to Fair Disclosure, “On Monday, Rosneft and ExxonMobil signed agreements
covering participation in several international as-sets. Rosneft has farmed into the Cardium tight oil play in the Harmattan area
northwest of Calgary, Alberta. The Cardium formation is an active unconventional oil play in which ExxonMobil has a
significant acreage position. Through this agreement, ExxonMobil assigned Rosneft working interest in over 56,000 net acres,
as well as an interest in the wells we have drilled to date. In West Texas, we will work together on another emerging tight oil
play in the Bone Spring formation, where Rosneft has acquired an equity interest in the La Escalera Ranch project in the
Delaware Basin. And finally, Rosneft will have the opportunity to acquire a 30% interest in 20 blocks held by ExxonMobil in
the deepwater western Gulf of Mexico. We will continue to work together on other assets and new opportunities that support
the relationship between Rosneft and ExxonMobil, and that will bring to global markets the en-ergy needed to help build a
healthier, more prosperous future for people the world over.” [Fair Disclosure, 4/18/12]
Rex Tillerson Broadly Endorsed Russian National Oil Company, Rosneft, And Said Rosneft’s Participation In
Partnerships In The United States Was Valuable To The US-Russia Relationship Generally. According to Fair
Disclosure, “REX TILLERSON: What I would tell you, though, is there is broad participation in the Gulf of Mexico today by
international companies, national companies, international independent oil companies, as there is onshore and in Canada. And
I think this is an important first step for Rosneft. To have a company -- a Russian company of their size and significance to
take a meaningful participation here in the United States, I think, is an very important step. From the standpoint of Rosneft as
a company, to broaden their footprint globally, become better known globally. And I also think it cannot be anything but
helpful to broadening the relationship between the American people and the Russian people. As I have said many times
around the world when I speak to countries and gov-ernments, and I said this publicly -- the way to build strong country
government-to-government relationships is to build strong economic ties between our people. When we have strong business
ties, strong commercial ties, economic ties, where there is a certain codependency, that is positive for the overall relationship.
So I think it can only be viewed as a very positive step.” [Fair Disclosure, 4/18/12]
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Rosneft And Exxon Agreed To Conduct A Joint Study Developing Tight Oil Resources In Western
Siberia.
Along With The Strategic Cooperation Agreement Exxon And Rosneft Agreed To Conduct A Joint Study
Developing Tight Oil Researches In Western Siberia. According to Business Wire, “Rosneft and ExxonMobil have
executed a Strategic Cooperation Agreement under which the companies plan to undertake joint exploration and development
of hydrocarbon resources in Russia, the United States and other countries throughout the world, and commence technology
and expertise sharing activities. […] The companies have also agreed to conduct a joint study of developing tight oil resources
in Western Siberia.” [Business Wire, 8/30/11]
Rex Tillerson Said The Exxon-Rosneft Western Siberia Tight Oil Venture “Combines The Strengths Of Our Two
Companies.” According to Platts Oilgram News, “Tillerson said Western Siberia represented a good opportunity for
ExxonMobil and Rosneft. ‘This agreement combines the strengths of our two companies,’ Tillerson said. ‘ExxonMobil has
technology leadership in tight oil and unconventional resource development and Rosneft brings direct knowledge and
experience of Western Siberia’s geology and conventional production.’” [Platts Oilgram News, 6/18/12]
Exxon And Rosneft Agreed To Create An Arctic Research And Design In St. Petersburg To Develop New
Technology To Support Their Joint Arctic Projects
Through Rosneft And Exxon’s “Strategic Cooperation Agreement The Companies Would Create An Arctic
Research And Design Center For Offshore Developments In St. Petersburg, Which Would Be Staffed By Rosneft
And Exxonmobil Employees. According to Business Wire, “Rosneft and ExxonMobil have executed a Strategic
Cooperation Agreement under which the companies plan to undertake joint exploration and development of hydrocarbon
resources in Russia, the United States and other countries throughout the world, and commence technology and expertise
sharing activities. […] The companies will create an Arctic Research and Design Center for Offshore Developments in St.
Petersburg, which will be staffed by Rosneft and ExxonMobil employees. The center will use proprietary ExxonMobil and
Rosneft technology and will develop new technology to support the joint Arctic projects, including drilling, production and
ice-class drilling platforms, as well as other Rosneft projects.” [Business Wire, 8/30/11]
2013: Joint Arctic Research Center Plans Finalized
June 2013: Rosneft And Exxonmobil Signed Final Agreements Establishing A Joint Arctic Research Center.
According to Business Wire, “Rosneft and ExxonMobil today signed final agreements establishing a joint Arctic Research
Center (ARC) in Russia and an over-arching technology sharing agreement to support the companies’ joint ventures
worldwide. Formally named the Arctic Research and Design Center for Continental Shelf Development, the ARC will provide
the Rosneft and ExxonMobil joint ventures a full range of research, development and technical services, with near-term focus
on the Kara Sea. Initial activities include work in the areas of safety and environmental protection; ice, metocean and
geotechnical surveys; sea ice management; development of design criteria; and the evaluation and design of development
concepts. The ARC will build on current best practices of Rosneft and ExxonMobil to develop technologies that are
environmentally safe, and more effective and efficient.” [Business Wire, 6/11/13]
Rosneft’s Igor Sechin Said Arctic Research Center Served The Goal Of Addressing The Technical And
Environmental “Challenges” Posed By Exxon And Rosneft’s Strategic Partnership. According to Business Wire,
“Rosneft President and Chairman of the Management Board Igor Sechin said, ‘Projects in the framework of our strategic
partnership with ExxonMobil pose a number of challenges. The ARC will be a platform for development of the most up-todate
and efficient technologies aimed at project implementation in complex and challenging climate and technological
conditions. Environmental safety is our priority, and we believe the technologies developed in the ARC will enable us to
implement our joint projects in the safest and most efficient way to the benefit of all participants of Arctic exploration.’
‘Technology and expertise have been the cornerstones of ExxonMobil’s success in the Arctic for the past 90 years,’ said Sara
N. Ortwein, president of ExxonMobil Upstream Research Company. ‘The Arctic Research Center and our technology sharing
agreement provide new opportunities to combine our knowledge and expertise with the talented people at Rosneft to meet the
next set of challenges in the Arctic and deepwater.’ The agreements support implementation of the companies’ August 2011
long-term strategic cooperation agreement.” [Business Wire, 6/11/13]
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Exxon Provided $200 Million In Funding For The Arctic Research Center’s Initial Research. According to Business
Wire, “ExxonMobil will provide $200 million in funding for the center’s initial research work and Rosneft and ExxonMobil
will equally fund the next $250 million to continue their joint research work. The partners’ interests are Rosneft 66.67 percent
and ExxonMobil 33.33 percent. ARC staff will be located with the Rosneft and ExxonMobil joint venture teams in Moscow to
promote resource efficiency and interaction between technical and management staffs. The ARC initially will be staffed with
experts from ExxonMobil and Rosneft. The agreements were signed in Washington D.C. by Sechin and Ortwein, with Rex W.
Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), and other executives from both
companies in attendance. As part of the joint work between the companies, Rosneft and ExxonMobil management attended
an exhibition at the National Gallery of Art in Washington. The ‘Diaghilev and the Ballets Russes, 1909–1929: When Art
Danced with Music’ exhibition was organized in collaboration with the Victoria and Albert Museum in London with major
funding provided by Rosneft and ExxonMobil.” [Business Wire, 6/11/13]
FEBRUARY 2013: EXXON AND ROSNEFT EXPAND COOPERATION
AGREEMENT
Exxon-Rosneft Partnership Expanded To Include More Projects In Russian Arctic, A LNG Project In The
Russian Far East And An Exxon Project In Alaska
February 2013: Exxon And Rosneft Expanded Their 2011 Strategic Cooperation Agreement To Include New
Projects In The Chukchi Sea, Laptev Sea And Kara Sea, A Joint Study On A Potential LNG Project In The Russian
Far East, And Potential Participation By Rosneft In The Point Thomson Project In Alaska. According to Business
Wire, “Rosneft and ExxonMobil have agreed to expand their cooperation under their 2011 Strategic Cooperation Agreement
to include an additional approximately 600,000 square kilometers (150 million acres) of exploration acreage in the Russian
Arctic and potential participation by Rosneft (or its affiliate) in the Point Thomson project in Alaska. They have also agreed to
conduct a joint study on a potential LNG project in the Russian Far East. The agreements, which include plans to explore
seven new blocks in the Chukchi Sea, Laptev Sea and Kara Sea, were signed by Igor Sechin, president of Rosneft, and Stephen
Greenlee, president of ExxonMobil Exploration Company, in the presence of Russian President Vladimir Putin.” [Business
Wire, 2/13/13]
Rosneft CEO Igor Sechin On Expansion Of Exxon-Rosneft Strategic Cooperation Agreement: “The Agreements
Signed Today Bring The Already Unprecedented Scale Of The Rosneft And Exxonmobil Partnership Up To A
Completely New Level.” According to Business Wire, “Commenting on the agreements signed, Igor Sechin said, ‘The
agreements signed today bring the already unprecedented scale of the Rosneft and ExxonMobil partnership up to a completely
new level. The acreage in the Russian Arctic subject to geological exploration and subsequent development increased nearly
six-fold. That means the enormous resource potential of Russian Arctic offshore fields will be explored and developed in the
most efficient manner with the application of cutting-edge technologies and expertise of our strategic partner, ExxonMobil,
and using state-of-the-art environmental protection systems. Participation in the Point Thomson project will increase
Rosneft’s access to the latest gas and condensate field development technologies used in harsh climatic conditions.’” [Business
Wire, 2/13/13]
2014: U.S. SANCTIONS PUT EXXON-ROSNEFT PARTNERSHIP MOSTLY ON ICE
July 2014: Exxon’s Joint Ventures With Rosneft Were Put On Hold By U.S. Sanctions Against Russia. According to
Forbes, “President-elect Donald Trump wants him. But many Russia-phobic Republicans and arguably not a single
Democratic in the Senate will vote for Exxon CEO Rex Tillerson as Secretary of State. Tillerson announced his retirement
Wednesday as CEO of Exxon after 41 years at the oil giant following Trump’s nominating him to replace John Kerry at the
State Department. Tillerson brings years of experience in dealing with foreign leaders in oil rich nations, including unsavory
ones in the Middle East. But of most concern is likely to be Tillerson’s relationship with Vladimir Putin. Exxon has a $720
million joint venture with Rosneft, run by Putin’s friend Igor Sechin. That deal has been put on ice since the White House
sanctioned Russian oil and gas companies in July 2014. In 2013 and 2014, both Rosneft and Exxon established various entities
to conduct exploration and research activities throughout Russia. Each joint venture remains on hold based on rules and
regulations set in the sectoral sanctions policies of both the U.S. and E.U. Exxon says that its maximum before-tax exposure
to loss from these joint ventures as of December 31, 2015, was $1 billion.” [Forbes, 12/15/16]
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While Exxon Successfully Lobbied To Cap Its Russian Arctic Exploration Operation In A Manner In Which It
Could Be Resumed, U.S. Sanctions Against Russia Forced The Operation To Be Halted. According to Bloomberg,
“Exxon signed a strategic cooperation agreement with Rosneft in 2011, and in 2014 the companies together drilled an
exploration well in Arctic waters. When the Obama administration imposed sanctions later that year, Exxon successfully
lobbied the administration to give it a two-week reprieve to keep working on the $700 million well in the Kara Sea long
enough to cap it for an eventual return. Exxon persuaded U.S. Treasury and Energy Department officials that it couldn’t safely
obey the White House order to halt work by the deadline. Sanctions against Russia remain an issue for the White House and
Congress. In October, at the request of the White House, the State Department weighed options for adding more sanctions
against Russia over its participation in the siege of the Syrian city of Aleppo. No further action has been taken.” [Bloomberg,
12/12/16]
Without Exxon’s Expertise, Rosneft Faced Difficulty Completing The Russian Arctic Exploration Project
Alone. According to Forbes, “However, earlier this month, the U.S. government extended sanctions on Russia over
the Ukrainian crisis. The previous round of sanctions only restricted the export of U.S. technology for Arctic and
shale exploration, which did not prevent Exxon and Rosneft from starting to drill an exploratory well in the Arctic
Kara Sea. However, the new set of measures were specifically targeted towards crippling the cooperation between
Western and Russian energy companies in Arctic and tight oil exploration, as they required the removal of U.S.
workers on these projects by September 26th. Nevertheless, Exxon received a license from the U.S. Treasury
Department allowing a slippage of up to 14 days beyond the sanctions’ deadline to enable a safe and responsible wind
down of exploration activities. This implies that until the U.S. eases sanctions on Russia, Exxon cannot collaborate
with Rosneft on exploration and development projects in the Arctic beyond October 10th. This creates a cloud of
uncertainty over the development prospects of newly discovered hydrocarbon reserves in the Kara Sea since it would
be difficult for Rosneft to accomplish this technically challenging project on its own.” [Forbes, 10/6/14]
ExxonMobil Halted Work On Nine Projects With State-Owned Russian Oil Company Rosneft Due To U.S.
Sanctions Against Russia. According to RIA Novosti, “The head of the American ExxonMobil Rex Tillerson will visit
Moscow this week for meetings with representatives of the Russian government and its strategic partner - "Rosneft", reports
Bloomberg, citing sources familiar with the situation. According to preliminary plans, the CEO of ExxonMobil will meet with
officials on Wednesday reported two sources. At the same time one of the sources said that the planning of meetings could
affect celebrations to mark the anniversary of the annexation of Crimea to Russia. The representatives of ExxonMobil and
"Rosneft" does not comment on the possible visit to Moscow Tillerson. Previously, ExxonMobil because of sanctions against
Russia halted work on nine projects in the framework of a strategic cooperation agreement with "Rosneft". In late February,
ExxonMobil said in a report that assesses the loss of output from joint ventures with "Rosneft" in the $ 1 billion by the end of
2014.” [RIA Novosti, 3/16/15]
Exxon Estimated It Lost $1 Billion Due To U.S. Sanctions
Exxon Said That Because Of U.S. Sanctions It Had Lost A Maximum Of $1 Billion From Its Joint Ventures In
Russia. According to Forbes, “Western sanctions against Russia are costing America’s most powerful company a few
hundred million bucks. A billion to be exact. Exxon Mobil XOM -0.54% said in a 10-k filing with the SEC on Wednesday that
it lost a maximum of $1 billion from sanctions. In July 2014, the European Union and United States imposed sanctions on the
Russian energy sector. The West believes Russia is behind much of the civil unrest in eastern Ukraine. Sanctions began in
March 2014 following Russia’s annexation of Crimea, a Black Sea peninsula that was once part of Ukraine. But the
punishment was kicked up a notch in July with sanctions banning American companies from doing business with Russian oil
and gas drillers. That hurt a new $723 million joint venture between Exxon and Rosneft , Russia’s largest state owned oil
company. This year, the two companies were to start drilling for oil in the Kara Sea, located in the Arctic Circle in northern
Russia. ‘In compliance with the sanctions and all general and specific licenses, prohibited activities involving offshore Russia in
the Black Sea, Arctic regions, and onshore western Siberia have been wound down,’ the company said in its filing for 2014
activities. Exxon said its ‘maximum exposure’ to loss from these joint ventures was $1 billion.” [Forbes, 2/27/15]
Other Notable Projects Under Tillerson
Exxon Had Operations In About 200 Countries, Including Major Oil Production Operations In Several Dozen.
According to Private Empire: ExxonMobil and American Power, “ExxonMobil’s vocal stance about contracts had a pragmatic
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aspect; it was a form of bargaining by deterrence. The corporation operated in about two hundred countries and it had major
oil production operations in several dozen. If it renegotiated contracts in one country, others would surely take notice and
might exploit the opening.” [Private Empire: ExxonMobil and American Power, pg. 417, 2012]
ANGOLA
Kizomba Satellites
2012: Exxon Announced It Started Production On An Offshore Project In The Mavacola And Clochas Fields 95
Miles Off The Coast Of Angola That Will Ultimately Produce 100,000 Barrels A Day. According to Business Wire,
“Exxon Mobil Corporation (NYSE:XOM) announced today that its subsidiary, Esso Exploration Angola (Block 15) Limited
(Esso Angola), has started production from the Kizomba Satellites Phase 1 project offshore Angola. The Kizomba Satellites
initial phase is expected to ultimately produce 100,000 barrels of oil per day, and recover a total of approximately 250 million
barrels from the Mavacola and Clochas fields, located 95 miles off the coast of Angola in water depths of approximately 4,500
feet.” [Business Wire, 7/9/12]
2015: Exxon Announced It Had Completed Phase 2 Of Its Kizomba Satellites Project That Was Expected To
Increase Production To 350,000 Barrels. According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM)
announced today that its subsidiary, Esso Exploration Angola (Block 15) Limited (Esso Angola), has started oil production
ahead of schedule at the Kizomba Satellites Phase 2 project offshore Angola. Kizomba Satellites Phase 2 is a Block 15 subsea
infrastructure development of the Kakocha, Bavuca and Mondo South fields. Mondo South is the first field to begin
production, and the other two satellite fields are expected to start up in the coming months. The project develops
approximately 190 million barrels of oil with peak production currently estimated at 70,000 barrels of oil per day. The project
is expected to increase total daily Block 15 production to 350,000 barrels.” [Business Wire, 4/30/15]
ARGENTINA
2010: Exxon Began Pursuing The Development Of The Vaca Muerta Shale
Exxon Pursued Investment In The Vaca Muerta Shale Starting In 2010. According to Bloomberg, “Exxon Mobil Corp.
may invest more than $10 billion as it transplants the U.S. shale-drilling model to Argentina’s Vaca Muerta region in the next
few decades, Chairman and Chief Executive Officer Rex Tillerson said Thursday. The oil giant has so far invested $200 million
in the world’s second-largest shale gas deposit and plans to invest another $250 million in coming months on a pilot project,
Tillerson said after meeting with Argentine President Mauricio Macri in Buenos Aires. Unlike the mega-projects that have
been Exxon’s hallmark for more than half a century, the shale developments the company began pursuing in 2010 have
involved drilling hundreds of individual wells and installing thousands of miles of pipes to squeeze crude and natural gas from
deep, dense, onshore fields. If the pilot project is successful, the company will start full development during a period of 20 to
30 years that could involve additional investment ‘that would be well in excess of $10 billion,’ he said.” [Bloomberg, 6/3/16]
2012: Tillerson Met With Argentina’s President To Discuss Exxon Entering A Joint Venture To Develop
Argentinea’s Natural Gas Resources
Rex Tillerson Met With Argentine President Cristina Fernandez To Discuss The Possibility Of Developing
Argentina’s Shale Gas Resources. According to World Oil, “During her visit to New York City for the 63rd United Nations
General Assembly, President Cristina Fernandez met with Exxon Mobil CEO Rex Tillerson and YPF President Miguel
Galuccio, to analyze the possibility of jointly developing Argentina’s non-traditional natural resources. This confirms that shale
is an integral part of YPF’s growth projections, and a means of increasing the hydrocarbon production, and decreasing oil and
gas imports. Argentinean President Cristina Fernandez and Exxon Mobil CEO Rex Tillerson discussed unconventional
hydrocarbon development.” [World Oil, 12/2012]
By 2016: Exxon Had Already Invested $200 Million To Develop The Vaca Muerta Shale
2016: Exxon Mobil had invested over $200 million in the Vaca Muerta shale, including hundreds of wells and
thousands of miles of pipe line, and planned to invest another $250 million soon. According to Bloomberg, “Exxon
Mobil Corp. may invest more than $10 billion as it transplants the U.S. shale-drilling model to Argentina’s Vaca Muerta region
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in the next few decades, Chairman and Chief Executive Officer Rex Tillerson said Thursday. The oil giant has so far invested
$200 million in the world’s second-largest shale gas deposit and plans to invest another $250 million in coming months on a
pilot project, Tillerson said after meeting with Argentine President Mauricio Macri in Buenos Aires. Unlike the mega-projects
that have been Exxon’s hallmark for more than half a century, the shale developments the company began pursuing in 2010
have involved drilling hundreds of individual wells and installing thousands of miles of pipes to squeeze crude and natural gas
from deep, dense, onshore fields. If the pilot project is successful, the company will start full development during a period of
20 to 30 years that could involve additional investment ‘that would be well in excess of $10 billion,’ he said.” [Bloomberg,
6/3/16]
2016: Tillerson Said Exxon May Invest More Than $10 Billion In The Vaca Muerta Over The Following
Decades
Rex Tillerson Said Exxon Mobil May Invest More Than $10 Billion To Develop A U.S. Model Shale-Drilling System
In Argentina’s Vaca Muerta Region In The Next Few Decades. According to Bloomberg, “Exxon Mobil Corp. may
invest more than $10 billion as it transplants the U.S. shale-drilling model to Argentina’s Vaca Muerta region in the next few
decades, Chairman and Chief Executive Officer Rex Tillerson said Thursday. The oil giant has so far invested $200 million in
the world’s second-largest shale gas deposit and plans to invest another $250 million in coming months on a pilot project,
Tillerson said after meeting with Argentine President Mauricio Macri in Buenos Aires. Unlike the mega-projects that have
been Exxon’s hallmark for more than half a century, the shale developments the company began pursuing in 2010 have
involved drilling hundreds of individual wells and installing thousands of miles of pipes to squeeze crude and natural gas from
deep, dense, onshore fields. If the pilot project is successful, the company will start full development during a period of 20 to
30 years that could involve additional investment ‘that would be well in excess of $10 billion,’ he said.” [Bloomberg, 6/3/16]
Vaca Muerta Investment Seen As Making Up For Exxon’s Loses In U.S. Natural Gas Investment And
Through Russian Sancations
Bloomberg: “Vaca Muerta shale region represents an opportunity to reverse production losses and add reserves
after a $35 billion wrong-way on U.S. natural gas and a Russian exploration venture that was derailed by
international sanctions.” According to Bloomberg, “For Tillerson, Argentina’s vast Vaca Muerta shale region represents an
opportunity to reverse production losses and add reserves after a $35 billion wrong-way bet on U.S. natural gas and a Russian
exploration venture that was derailed by international sanctions. Exxon, the world’s largest oil explorer by market value, has
designated Vaca Muerta as one of nine ‘key activity’ areas in the Western Hemisphere and one of just four in South America,
according to company data.” [Bloomberg, 6/3/16]
CANADA
Mackenzie Valley Pipeline
2007: Rex Tillerson Said ExxonMobil May Halt Its Mackenzie Valley Pipeline Project Unless A Substantial Subsidy
From The Canadian Government Is Approved. According to The Globe and Mail, “Exxon Mobil Corp., one of the
world’s biggest oil companies, has turned up the heat on the Canadian government, saying the company will shelve the longdelayed
Mackenzie Valley pipeline project unless it can get significant taxpayers’ assistance for it. Rex Tillerson, Exxon’s chief
executive officer, told reporters at the company’s annual meeting in Dallas yesterday that the $16.2-billion price tag for the
1,200-kilometre natural gas pipeline means that it is not viable without sizable federal aid. ‘We are now in a situation where it’s
not economic at current costs,’ Mr. Tillerson said, noting the tremendous inflation that has plagued oil field construction
projects. He said it is not clear if the federal government will come forward with a package of royalty and tax breaks large
enough to provide the project sponsors with a decent rate of return. ‘It may just be that the project is going to have to wait for
a different cost environment,’ he said. The pipeline would carry up to 1.9 billion cubic feet a day of natural gas from the
Canadian Arctic to Alberta, and is seen as a critical piece of infrastructure in opening the North to resource development.”
[The Globe and Mail, 5/31/07]
Ajurak Oil Fields
2007: Exxonmobil Spent $568 Million For A Half-Million-Acre Tract Of Potential Oil Fields In The Deep Waters Of
Canada’s Beaufort Sea, Dubbed Ajurak. According to Natural Gas Week, “Something very oily or very gassy must be
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uried beneath the cold, deep waters of Canada’s Beaufort Sea. Or that is what BP, Exxon Mobil and its 70%-owned
Canadian affiliate Imperial Oil apparently believe. The amount of money they already have invested demonstrates the level of
their confidence: Exxon and Imperial parted with $585 million (US$568 million) for a half-million-acre tract, dubbed Ajurak,
around 70 miles from the delta in 2007. BP paid C$1.2 billion (US$1.16 billion) for adjacent half-million-acre holdings, called
Pokak, some 85 miles north of the Mackenzie River Delta the following year.” [Natural Gas Week, 8/9/10]
Hebron Oil Field
2013: Exxon Announced It Will Develop The Hebron Oil Field Off Of Newfoundland In Canada And Produce
150,000 Barrels A Day By The End Of 2017. According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM)
announced today it will develop the Hebron oil field offshore the Canadian province of Newfoundland and Labrador using a
gravity-based structure that will recover more than 700 million barrels of oil, an increase versus earlier estimates. Capital cost
for the project, which is expected to begin oil production around the end of 2017, is estimated at $14 billion. The platform is
being designed for daily production of 150,000 barrels of oil. ‘Hebron is one of several large-scale oil developments that
ExxonMobil will bring on stream in the next five years,’ said Neil W. Duffin, president of ExxonMobil Development
Company. ‘ExxonMobil will employ its expertise in Arctic development and project execution to develop this world-class
resource in challenging operating conditions.’” [Business Wire, 1/4/13]
CHINA
2009: Exxon Signed A Long-Term Agreement To Sell Liquefied Natural Gas To Chinese State-Owned
Company PetroChina
2009: Exxon Mobil Signed A Long-Term Agreement To Sell Australian Liquefied Natural Gas To Chinese
Company PetroChina. According to Natural Gas Week, “Exxon Mobil demonstrated again last week that its near-tointermediate
term opportunities are in the natural gas realm rather than in oil when it signed a long-term agreement to supply
liquefied natural gas to PetroChina. The company said that it would provide the giant Chinese energy conglomerate with 300
million cubic feet of gas per day from its share in the Gorgon LNG project on Australia’s North West Shelf in a 20-year sale
and purchase agreement.” [Natural Gas Week, 8/24/09]
PetroChina Was A Subsidiary Of China’s State-Owned China National Petroleum Corporation. According
to Hoovers, “If you want petroleum in China or elsewhere, then PetroChina is your company. A subsidiary of stateowned
China National Petroleum Corporation (CNPC), PetroChina produces two-thirds of China's oil and gas. The
company has proved reserves of 10.8 billion barrels of oil and 69.3 trillion cu. ft. of natural gas. In China it owns more
than 53,400 kilometers of natural gas and refined products pipeline, and operates 29 refineries and 13 chemical plants.
PetroChina was created in 2000 as a separate company to initially manage the domestic operations -- and in recent
years some key international assets -- of CNPC.” [Petrochina Company Limited Company Profile, Hoovers,
(accessed, 1/4/17)]
IRAQ
West Quarna
2009: Exxon Reached A Deal With Iraq For Exclusive Access To The West Qurna Phase One Oil Project. According
to Private Empire: ExxonMobil and American Power, “Late in 2009, Vierbuchen and the president of ExxonMobil Upstream
Ventures, Rob Franklin, at last closed a deal-after months of private negotiations with Iraqi officials-for exclusive access to
Iraq’s West Qurna Phase One oil project. The field contained at least 8.7 billion barrels-a behemoth by industry standards.
ExxonMobil agreed to apply modern technology and techniques to raise the field’s production from its current 300,000 barrels
per day to more than 2.3 million barrels per day within six years, taking a gross profit of only $1.90 per barrel-below the $2.00
per-barrel remuneration fee Iraq had specified at the first unsuccessful auction. The deal was structured so that ExxonMobil
first had to increase the field’s production to 10,000 barrels per day higher than the peak production achieved under Saddam
Hussein. After that, ExxonMobil was permitted to take its $1.90 premium as oil in kind.” [Private Empire: ExxonMobil and
American Power, pg. 574, 2012]
MOZAMBIQUE
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The Zambezi Delta And Angoche Exploration Projects
Exon Was Granted Hydrocarbon Exploration Licences For Three Offshore Blocks, Two Near The Zambezi Delta,
And One Close To The Small Port Of Angoche In Nampula Province. According to Africa News, “Also on Monday,
Nyusi granted an audience to Rex Tillerson, the chairperson and chief executive officer of the Exxon Mobil Corporation. At
the end of the meeting Tillerson said his company has great interest in undertaking operations in Mozambique, where it has
been granted hydrocarbon exploration licences for three offshore blocks, two near the Zambezi Delta, and one close to the
small port of Angoche in Nampula province. It's clear that there are some challenges , said Tillerson, but from what we've
seen, the country has a lot of hope. There's a lot that's going to be done, and we think the country has a bright future.” [Africa
News, 9/20/16]
2016: Rex Tillerson Met With Mizanbique’s President
Rex Tillerson Told Mozambique President Filipe Nyusi That ExxonMobil Had Great Interest In Operating In
Mozambique. According to Africa News, “Also on Monday, Nyusi granted an audience to Rex Tillerson, the chairperson and
chief executive officer of the Exxon Mobil Corporation. At the end of the meeting Tillerson said his company has great
interest in undertaking operations in Mozambique, where it has been granted hydrocarbon exploration licences for three
offshore blocks, two near the Zambezi Delta, and one close to the small port of Angoche in Nampula province. It's clear that
there are some challenges , said Tillerson, but from what we've seen, the country has a lot of hope. There's a lot that's going
to be done, and we think the country has a bright future.” [Africa News, 9/20/16]
MALAYSIA
Damar Oil Field
2014: Exxon Announced The Start Of Production At The Damar Natural Gas Field Off The East Coast Of Malaysia.
According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM) today announced the start of natural gas production
at the Damar field off the east coast of Peninsular Malaysia. ExxonMobil subsidiary, ExxonMobil Exploration and Production
Malaysia Inc., has a 50 percent interest in the project. The Damar field has a projected capacity of 200 million cubic feet of gas
per day. ExxonMobil and joint-venture partner Petronas Carigali Sdn. Bhd. have planned a total of 16 development wells for
the platform. ‘Damar will help meet increasing natural gas demand in Malaysia,’ said Neil W. Duffin, president of ExxonMobil
Development Company. ‘It also represents one of several projects that will add to ExxonMobil’s global production in the
coming years as we remain focused on delivering profitable volumes over the long term.’ Damar was developed under a gas
production sharing contract between ExxonMobil, Petronas Carigali and Petronas. ExxonMobil is the operator of the Damar
field and Petronas Carigali holds a 50 percent interest. The Damar startup follows the previously announced Telok gas
development in Malaysia, which began production in March 2013. The projects provide additional gas supplies to help meet
Malaysia’s power and industrial needs and promote growth of the country’s natural gas industry.” [Business Wire, 2/13/14]
NIGERIA
2008: Tillerson Met With The Nigerian President On Constructing A Gas-To-Gasoline Plant
2008: Rex Tillerson Met With Nigerian President Umaru Musa Yar’Adua Who Afterward Directed His Oil Minister
To Hold Talks With Exxonmobil On The Construction Of A Gas-To-Gasoline Plant. According to Africa News,
“President Umaru Musa Yar’Adua has directed the Ministry of Petroleum to hold talks immediately with ExxonMobil
regarding the oil company’s proposals to build a gas-to-gasoline plant in Nigeria. The President was speaking when he received
an ExxonMobil delegation, led by Mr. Rex Tillerson, Chairman/Chief Executive Officer, at State House, on Friday, March 28.
[…] Earlier, Mr. Rex Tillerson, ExxonMobil Chief Executive Officer, had told the President that his company was capable of
building a plant to produce up to 100,000 barrels of gasoline per day from natural gas, with other by-products such as liquefied
petroleum gas. He expressed appreciation to the President for creating the environment, which enables private sourcing of
funds for the country’s oil sector, and assured that his company had confidence in the Nigerian economy.” [Africa News,
3/28/08]
Usan Field
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2012: Exxon Began Production At The Usan Field Off Of Nigeria’s Coast That Was Expected To Product Up To
180,000 Barrels A Day. According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM) announced today the startup
of production from the Usan field, offshore Nigeria. ExxonMobil subsidiary Esso E&P Nigeria (Offshore East) Limited has a
30 percent interest in the deepwater project. The Usan project has capacity to produce up to 180,000 barrels per day gross.
‘This project represents another major achievement of the industry and Nigerians working together to develop the country’s
resources,’ said Neil Duffin, president, ExxonMobil Development Company. ‘Usan is providing significant benefits including
revenues, employment and opportunities for local suppliers.’ The Usan field was discovered in 2002 in water depths of 2,400
feet approximately 62 miles from the coast. Production facilities include a floating production, storage and offloading vessel
and ultimately 42 sub-sea wells. The operator is Total E&P Nigeria Limited. ExxonMobil is active in both shallow water shelf
and deepwater acreage offshore Nigeria. In the deepwater ExxonMobil has interests in seven blocks, operates the producing
Erha and Erha North fields and also produces from the co-venturer operated Bonga field. In 2010, ExxonMobil’s net
production in offshore Nigeria averaged 391 thousand barrels a day.” [Business Wire, 2/24/12]
Erha Deepwater Field
2006: Exxon Began Production On Its Erha Deepwater Development That Is Expected To Utlimatly Produce
150,000 Barrels A Day. According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM) announced today that its
affiliate, Esso Exploration and Production Nigeria Limited (EEPNL), has started production from the world-class Erha
deepwater development located approximately 60 miles (97 kilometers) offshore Nigeria in 3,900 feet (1,200 meters) of water.
The development includes Erha and Erha North, a satellite development due to come onstream in the third quarter of this
year. This is EEPNL’s first operated production from Nigeria’s deepwater Block 209. Erha production is expected to ramp up
to 150,000 barrels a day by the third quarter, and Erha North will contribute another 40,000 daily barrels by year-end for a
total production output of 190,000 barrels a day. Erha North will be on production within 30 months of discovery, setting a
Nigeria deepwater record. Associated natural gas production from the projects will be about 300 million cubic feet a day,
which will be reinjected for reservoir management. The Erha and Erha North developments consist of 32 subsea wells tied to
a Floating Production Storage and Offloading (FPSO) vessel. A single-point mooring buoy, one of the world’s largest, will be
used for crude carrier docking and product transfer. The facilities were constructed within budget and total cost for the two
developments, including facilities and drilling, is approximately $3.5 billion.” [Business Wire, 4/28/06]
2015: Exxon Began Production At Its Erha North Project Off Nigeria’s Coast With An Expected Peak Production
Of 65,000 A Day. According to The Wall Street Journal, “Exxon Mobil Corp. said Wednesday that it has begun production
at its new Erha North project offshore Nigeria five months ahead of schedule, while affirming its forecast for 2% production
growth this year. The deepwater project is located 60 miles offshore Nigeria and inclues seven wells, with expected peak
production of 65,000 barrels of oil a day. It will be tied to an existing Erha North floating production, storage and offloading
vessel, helping reduce infrastructure. Exxon said the project came in ahead of schedule and $400 million under budget due to
the performance of its Nigerian contractors. The U.S. oil giant also on Wednesday affirmed its forecast for 2% production
growth in 2015 to 4.1 million oil-equivalent barrels per day. While Exxon’s profit has tumbled in recent quarters amid the drop
in crude prices, its production has continued to grow. In the second quarter, the company’s profit tumbled 52%, while
production improved 3.6% to 4 million oil-equivalent barrels per day.” [Wall Street Journal, 9/16/15]
PAPUA NEW GUINEA
2009: Exxon Concluded Cost Sharing Agreement with Papua New Guinea Government And Local
Stakeholders
2009: Exxon Concluded A Cost Sharing Agreement With Papua New Guinea And Local Stakeholders On Its PNG
LNG Project. According to Business Wire, “In May 2009, the Independent State of Papua New Guinea, representatives of
project area landowners, and four provincial and 10 local-level governments approved the PNG LNG Umbrella Benefits
Sharing Agreement, confirming support from landowners and all levels of PNG government. The overarching agreement
outlines the sharing of revenue streams from royalties, development taxes and equity dividends totaling between US $5.6-7.5
billion (15-20 billion PNG kina) over the project life. The government of Papua New Guinea, through its Department of
Environment and Conservation, approved the project’s environmental impact statement that reviewed factors such as
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community needs, sensitive environmental habitats, and biodiversity. The project will supply four major LNG customers in
the Asia region through long-term sales, including: CPC Corporation, Taiwan; Osaka Gas Company Limited; The Tokyo
Electric Power Company, Inc.; and Unipec Asia Company Limited, a subsidiary of China Petroleum and Chemical
Corporation (Sinopec).” [Business Wire, 3/12/10]
2009: Osaka Gas LNG Deal (Japan)
2009: Exxon Finalized An Agreement With Osaka Gas To Supply Natural Gas From Paupa New Guinea To Japan.
According to Business Wire, “Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation (NYSE:XOM) and operator
of the PNG LNG Project, today announced that the Project participants have finalized a Sale and Purchase Agreement with
Osaka Gas Co., Ltd. for the long-term sale and purchase of liquefied natural gas (LNG) totaling approximately 1.5 million
tonnes per annum (MTA). The agreement is effective for a 20-year period. ‘We are pleased to have entered into this important
agreement with a leading LNG customer in Japan and to have started a new relationship with Osaka Gas,’ said Ron Billings,
vice president, LNG, ExxonMobil Gas and Power Marketing. ‘The PNG LNG project will provide a clean-burning supply of
natural gas to help meet growing energy demand in Japan.’ The PNG LNG co-venturers recently announced approval to
proceed with the development of the Project pending completion of all sales and purchase agreements with LNG customers
and finalization of financing arrangements with lenders.” [Business Wire, 12/22/09]
2010: CPC Corporation LNG Deal (Taiwan)
2010: Exxon Finalized An Agreement With CPC Corporation To Supply Natural Gas From Paupa New Guinea To
Taiwan. According to Business Wire, “Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation (NYSE:XOM) and
operator of the PNG LNG Project, today announced that the Project participants have finalised a Sale and Purchase
Agreement (SPA) with CPC Corporation, Taiwan (CPC) for a long-term supply of liquefied natural gas (LNG) totalling
approximately 1.2 million tonnes per annum (MTA). Under the agreement, the PNG LNG Project will supply LNG to CPC
for a period of 20 years. ‘This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to
meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and
PNG’s first LNG project,’ said Ron Billings, vice president, LNG, ExxonMobil Gas and Power Marketing. ‘It also marks a
significant step forward for the PNG LNG project. With this SPA, all of the Project’s production capacity has been
committed on a long-term basis. We are now looking forward to the finalisation of the financing arrangements with lenders
which is expected in the first quarter of 2010.’” [Business Wire, 3/2/10]
2016: Attempted Acquisition of InterOil Corp
July, 2016: Exxon Won The Bid To Purchase InterOil Corp, For $2.5 Billion Which Holds Six License To Develop
Projects In Papua New Guinea And Has Announced Plans To Build A LNG Export Terminal In That Country.
According to the Wall Street Journal, “Exxon Mobil Corp. won a bidding war to buy U.S.-listed InterOil Corp. for an
estimated $2.5 billion after Oil Search Ltd. dropped out of the process Thursday. The boards of Exxon and InterOil
unanimously approved terms of the $45-a-share agreement that has the potential for an additional cash payment, the
companies announced. The deal is expected to close in September, subject to shareholder and regulatory review. In May, Oil
Search offered $2.2 billion for InterOil, which holds six licenses to develop energy projects in Papua New Guinea that cover
four million acres. InterOil has announced plans to build a massive liquefied natural gas export terminal in Papua New
Guinea, using the large Elk-Antelope field as an anchor for the project.” [Wall Street Journal, 7/21/16]
Purchase Attempt Put On Hold By Canadian Court
The Supreme Court Of Yukon Blocked Approval Of Exxon’s Purchase Of InterOil, Finding In Favor Of Phil
Mulacek, Interoil’s Founder And Second-Largest Shareholder. According to Reuters, “InterOil Corp (IOC.N) said on Friday
an appeals court in Canada had overturned approval of the natural gas producer’s $2.5 billion sale to Exxon Mobil Corp
(XOM.N), throwing the deal’s viability in doubt. The Supreme Court of Yukon ruled for Phil Mulacek, InterOil’s founder and
second-largest shareholder, who had objected to the all-stock deal announced in July. The Supreme Court approved the deal in
early October, but Mulacek filed an objection saying it did not properly remunerate InterOil shareholders. InterOil is
incorporated in Yukon, Canada, with operations in Papua New Guinea and headquarters in Singapore. An InterOil
representative said on Friday that Canadian approval was all that remained to close the deal. Exxon representatives were not
immediately available for comment. A representative for Mulacek was not immediately available for comment. InterOil said it
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still believed that the Exxon deal represented ‘compelling value’ for its shareholders and was considering options to close the
deal. Shares of InterOil fell 5.8 percent to close at $45.75, and Exxon edged down 0.1 percent to $83.57. InterOil owns a 36.5
percent stake in Papua New Guinea’s Elk-Antelope gas field, which is operated by Total (TOTF.PA).” [Reuters, 11/4/16]
QATAR
2006: Tillerson Praised Qatar’s Business Approach
2006: Rex Tillerson Said Exxon’s Success In Qatar Was An “Approach [That] Can Be Replicated Around The
World.” According to the New York Times, “The model for Exxon's expansion was perhaps best displayed in Qatar, a small
Persian Gulf state holding the world's third-largest natural gas deposits, after Russia and Iran. In the early 1990's, Exxon
approached the Qatari government with an offer to serve as a joint partner. Today, Exxon is the largest foreign investor in
Qatar and the nation is on track to become the world's leading liquefied natural gas producer. ‘We are looking for the large
opportunities,’ Mr. Tillerson said. Referring to Qatar, Mr. Tillerson said ‘that approach can be replicated around the world.’”
[New York Times, 3/30/06]
2010: Tillerson Congratulated Qatar On Becoming World’s Largest Natural Gas Producer
2010: Rex Tillerson Congratulated Qatar On Becoming The Largest Producer Of Liquefied Natural Gas In The
World. According to Business Wire, “ExxonMobil congratulated Qatar on becoming the world’s largest producer of liquefied
natural gas at a ceremony today marking the production capacity milestone of 77 million tones per annum (MTA). The event
was celebrated in Ras Laffan Industrial City at a ceremony under the patronage and in the presence of His Highness Sheikh
Hamad Bin Khalifa Al Thani, the Emir of the State of Qatar and His Excellency Abdullah Bin Hamad Al Attiyah the Deputy
Premier and Minister of Energy and Industry. Also in attendance were Rex W. Tillerson, chairman and chief executive officer
of Exxon Mobil Corporation (NYSE:XOM), ministers, senior government officials and delegations from Qatar Petroleum,
Qatargas and RasGas. ‘I would personally like to congratulate both His Highness the Emir and His Excellency Minister Al
Attiyah for this incredible achievement,’ said Tillerson. ‘Qatar’s visionary leadership and the remarkable story of its natural gas
development are truly an inspiration. We are honored to be part of this major accomplishment.’” [Business Wire, 12/13/10]
Largest Natural Gas Field In The World
2009: Exxon Neared Competion Of Its $30 Billion Investment To Develop The World’s Largest Natural Gas Field
In Qatar. According to Forbes, “ExxonMobil’s bet on natural gas best comes into focus 7,900 miles away from its Irving,
Tex. headquarters, in the Persian Gulf state of Qatar. There ExxonMobil is nearing completion of a $30 billion project to
develop the world’s biggest natural gas field. Four giant plants, the biggest of their kind, will chill the gas into liquefied natural
gas for loading onto thermos-bottle tankers (also the biggest) and shipment to ports around the world. The Qatar megaproject
will by next year boost ExxonMobil’s gas production 12% to 9.9 billion cubic feet a day, and vault the company into first place
as the world’s biggest natural gas producer not controlled by a government. Qatar volumes will help increase total oil and gas
output roughly 5% to the energy equivalent of 4.3 million barrels of oil a day. The country will contribute an estimated 7% of
ExxonMobil’s pretax earnings (which were $55 billion in the last 12 months). All the big oil companies are drifting away from
petroleum into natural gas, and for the same two reasons that Exxon is: Gas is cleaner-burning and still plentiful. With Qatar,
Exxon has gotten ahead of its competition.” [Forbes, 8/24/09]
Al Khaleej Natural Gas Processing Facilities
2010: Exxon Announced The Initiation Of Operations At The Al Khaleej Gas-Phase 2 Project, Which Combined
With Al Khaleej Gas-Phase 1 Will Be The Largest Source Of Domestic Gas Supply In Qatar. According to Business
Wire, “Qatar Petroleum and Exxon Mobil Corporation (NYSE:XOM) today announced the Al Khaleej Gas-Phase 2 (AKG-2)
project, with 1,250 million cubic feet per day (mcfd) of sales gas capacity, initiated operations in December 2009. The new
facilities are designed to meet the growing demand of local industries. Combined with Al Khaleej Gas-Phase 1 (AKG-1),
which began production in 2005, AKG will have a total capacity of 2,000 mcfd, making it the largest source of domestic gas
supply in the State of Qatar. The AKG-2 project involved construction of onshore gas treating, liquids recovery and
fractionation facilities and two additional offshore wellhead platforms. ExxonMobil utilized state-of-the-art technologies,
including its proprietary Fast Drill and well completion technologies, to reduce drilling time and optimize the costs of the new
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North Field wells. The onshore facilities are integrated with the Ras Laffan Liquefied Natural Gas Company Limited (3)
facilities in Ras Laffan Industrial City. Initial production occurred in December 2009.” [Business Wire, 2/23/10]
LNG Transport Project
2005: Rex Tillerson Attended A Ceremony With Qatari Energy Minister Abdullah Al-Attiyah And US Secretary Of
Energy Samuel Bodman Inaugurating An ExxonMobil Project In Qatar To Transport Liquefied Natural Gas.
According to Platts Oilgram News, “ExxonMobil and Qatar Petroleum Nov 15 officially inaugurated Ras Laffan Liquefied
Natural Gas Co III, saying they will spend $14-bil to construct two additional LNG trains at their joint RasGas project in
north-eastern Qatar. The trains, each with capacity of 7.8-mil mt/year, are due to go online in 2008 and 2009 respectively,
ExxonMobil said in a statement. They would be the sixth and seventh trains constructed by RasGas; the others were
developed under the Ras Laffan I and II projects. ExxonMobil said the two newest trains would increase RasGas' LNG
production capacity by more than 70%. The trains will be supplied by 28 new wells that will be drilled on Qatar's giant North
Field, which is estimated to hold natural gas reserves in excess of 900 Tcf. ‘LNG from the project will be delivered to targeted
markets, principally the US,’ ExxonMobil said. A ceremony inaugurating Ras Laffan III was held in Doha Nov 15 and attended
by Qatari energy minister Abdullah al-Attiyah, US Secretary of Energy Samuel Bodman, and Exx-onMobil president
Rex Tillerson, among others. Qatar Petroleum owns 70% of RasGas, while ExxonMo-bil holds 30%.” [Platts Oilgram News,
11/16/05]
SINGAPORE
PetroChemical Complex
Exxon Mobil’s Refinery In Singapore Was The Corporation’s Largest Manufacturing Sight In The World. According
to The Business Times Singapore, “EXXONMOBIL’S integrated Singapore refinery-petrochemicals operations - which will
be its largest manufacturing site worldwide when its US $5 billion second petrochemical complex starts up in 2011 - will be a
good base for the world’s largest oil company to further grow production for the fast-growing Asia-Pacific, Rex Tillerson, its
chairman and CEO said.” [The Business Times Singapore, 11/16/09]
Exxon’s Petrochemical Complex Was Singapore’s Largest Manufacuting Investment
Exxonmobil’s New $5 Billion - $6 Billion Petrochemical Complex Was Singapore’s Largest Manufacturing
Investment Ever. According to Business Times Singapore, “ExxonMobil’s (EM) new, second petrochemical complex here -
costing an estimated US$5 billion-US$6 billion - is the US energy giant’s largest investment here and also Singapore’s largest
manufacturing investment ever, said Prime Minister Lee Hsien Loong who opened the expansion yesterday, bringing EM’s
total investment here to well over US$10 billion. ‘But that’s not the end of the story,’ EM Chemical’s president, Steve Pryor,
assured, disclosing that the group was already planning additional specialty plant investments here, including for butyl rubber
used for tyres, and premium resins for adhesives. ‘ExxonMobil views the Singapore complex as a platform for future growth,’
he added. In fact, EM’s top brass, led by group chairman and CEO Rex Tillerson, earlier met the Economic Development
Board on Tuesday for discussions including on its future projects here, and followed this up yesterday with another meeting
with PM Lee at its Jurong Island facility, prior to the inauguration proper.” [Business Times Singapore, 1/9/14]
2014: Tilerson Discussed Future Potential Investments With Singapore’s Governmet
2014: Rex Tillerson Met Singapore’s Economic Development Board To Discuss Future Projects In Singapore.
According to Business Times Singapore, “ExxonMobil’s (EM) new, second petrochemical complex here - costing an estimated
US$5 billion-US$6 billion - is the US energy giant’s largest investment here and also Singapore’s largest manufacturing
investment ever, said Prime Minister Lee Hsien Loong who opened the expansion yesterday, bringing EM’s total investment
here to well over US$10 billion. ‘But that’s not the end of the story,’ EM Chemical’s president, Steve Pryor, assured, disclosing
that the group was already planning additional specialty plant investments here, including for butyl rubber used for tyres, and
premium resins for adhesives. ‘ExxonMobil views the Singapore complex as a platform for future growth,’ he added. In fact,
EM’s top brass, led by group chairman and CEO Rex Tillerson, earlier met the Economic Development Board on Tuesday for
discussions including on its future projects here, and followed this up yesterday with another meeting with PM Lee at its
Jurong Island facility, prior to the inauguration proper.” [Business Times Singapore, 1/9/14]
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TURKEY
Black Sea Hydrocarbon Exploration
2009: Exxon Announced An Agreement With Production Turkey B.V. And The Turkish National Oil Company
Türkiye Petrolleri Anonim Ortaklığı (TPAO) To Explore Two Deepwater Blocks In The Black Sea. According to
Business Wire, “Exxon Mobil Corporation (NYSE: XOM) today announced the Turkish government approved an agreement
between its affiliate ExxonMobil Exploration and Production Turkey B.V. and the Turkish national oil company Türkiye
Petrolleri Anonim Ortaklığı (TPAO) to explore two deepwater blocks in the Black Sea. ExxonMobil and TPAO signed the
agreement in November 2008 to jointly explore deepwater prospects in the Samsun Block, which measures approximately 2
million acres (8,500 square kilometers) and the eastern portion of 3921 Block, which measures approximately 5 million acres
(21,000 square kilometers). Water depths reach an approximate 6,500 feet (2,000 meters). ExxonMobil will be the operator and
will earn a 50% interest in both offshore blocks.” [Business Wire, 6/8/09]
2010: Exxon Signed An Agreement With Petrobras And The Turkish National Oil Company (TPAO) To Explore
For Hydrocarbons In The Deepwater Black Sea Offshore Turkey. According to Business Wire, “Exxon Mobil
Corporation (NYSE:XOM) and Petrobras announced today that an ExxonMobil affiliate signed an agreement with a
Petrobras affiliate and the Turkish National Oil Company (TPAO) to explore for hydrocarbons in the deepwater Black Sea
offshore Turkey. Under the terms of the farm-in agreement, ExxonMobil Exploration and Production Turkey B.V. will
acquire a 25 percent interest in the Sinop, Ayancik and Çarşamba sub-blocks of the AR/TPO/3922 exploration license.
Petrobras will retain a 25 percent equity interest in the block and will remain the operator. TPAO holds the remaining 50
percent interest. ‘We look forward to utilizing the technologies and expertise of all three companies as we explore for potential
commercial resources in the Black Sea,’ said Mehmet Uysal, CEO of TPAO. ‘We are pleased to add this prospective acreage to
our global portfolio and expand our presence in the deepwater Black Sea,’ said Russ Bellis, exploration director, ExxonMobil
International Limited.” [Business Wire, 1/12/10]
TURKMENISTAN
Exxon Sought Entrée To Turkmenistan’s Oil and Gas Market
Rex Tillerson Met With Turkmenistan President Gurbanguly Berdymukhamedov In September 2009 To Discuss
Investiment In The Country. According to Platts Oilgram News, “ExxonMobil is keen to invest in Turkmenistan, with
CEO Rex Tillerson calling the market ‘exceptionally promising,’ Turkmenistan’s state news agency reported September 25.
Tillerson met with Turkmenistan President Gurbanguly Berdymukhamedov in New York September 24 to discuss
cooperation in the oil and gas sphere. ‘[Tillerson] spoke of the company’s intense interest in establishing mutually
advantageous cooperation with Turkmenistan...aimed at technology modernization of the sector and diversification of oil and
gas transit to international markets,’ the report said. Tillerson said Turkmenistan was ‘not only abundant in hydrocarbon
resources--proven by independent experts--but also conducive to foreign business.’” [Platts Oilgram News, 9/28/09]
ExxonMobil Sought Access To Turkmenistan, Opening An Office In Ashgabat And Holding Talks With The
Turkmeni Government. According to The Times, “Exxon is one of the world’s most aggressive oil companies in terms of
exploring new frontiers for oil and gas. It is among a string of companies planning to drill in the Arctic waters around
Greenland. The group is also seeking to gain access to Turkmenistan, the reclusive central Asian state thought to hold the
world’s fifth-biggest reserves of natural gas. It recently reopened an office in the nation’s capital and held talks with the
government.” [The Times, 10/29/10]
UAE
2006: Exxon Gained Access To The World's Fourth-Largest Oil Field In The United Arab Emirates
2006: Rex Tillerson Praised A State-Owned UAE Oil Company In Announcing A 20-Year Between It And Exxon
Mobil To Develop An Oil Field In That Country. According to Platts Oilgram News, “The UAE and ExxonMobil March
27 signed a 20-year agreement giving the US major a 28% stake in the 550,000 b/d Upper Zakum oil field, one of the biggest
offshore fields in the world, Abu Dhabi National Oil Co (ADNOC) said in a brief statement. The country's Supreme
Petroleum Council (SPC), state-owned ADNOC and ExxonMobil signed the deal in Abu Dhabi, the official news agency
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WAM reported. Under the agreement, ADNOC's share in Zakum Development Company (ZADCO) falls to 60%. Japan Oil
Development Company (JODCO) will retain its 12% stake. […] ‘We look forward to joining the already strong ZADCO
team and to supplementing and enhancing the technology and capabilities of ZADCO and its shareholders,’ said ExxonMobil
CEO Rex Tillerson in a statement. ‘We also look forward to cooperating closely with ADNOC in the areas of training and
development of human resources.’” [Platts Oilgram News, 3/28/06]
2006: Under Rex Tillerson’s Leadership, Exxon Mobil Gained Access To The World's Fourth-Largest Oil Field, In
The United Arab Emirates. According to the New York Times, “But after taking over as chairman, Mr. Tillerson has
already scored two major coups: gaining access to the world's fourth-largest oil field, in the United Arab Emirates, and
prevailing in a five-year-old dispute over the development of Indonesia's largest untapped oil reserves. Mr. Tillerson met with
each country's leaders to break deadlocked talks or make a final pitch for his company. In Indonesia, the government fired the
head of the national oil company, who opposed Exxon. His successor quickly signed a deal. But if both agreements proved a
success for Mr. Tillerson, they also mask a starker reality for oil companies: their access to the world's top hydrocarbon
deposits is more limited than ever. At Exxon, the problem is magnified by the company's size. Each year, its geologists must
find huge amounts of oil and gas -- nearly 1.5 billion barrels -- just to replace the company's production of about 4 million
barrels a day.” [New York Times, 3/30/06]
UNITED STATES
Expansion of The Pegasus Pipeline
2009: Exxon Completed Its Project To Expand The Capacity Of The Pegasus Pipeline, Which Runs From Illinois
To Texas, By 50%. According to Business Wire, “Mobil Pipe Line Company, an affiliate of ExxonMobil Pipeline Company,
has completed a project that will increase capacity by 50 percent, or about 30,000 barrels per day, of its 858-mile Pegasus
Pipeline that operates from Patoka, Illinois to Nederland, Texas. The expansion project includes the reactivation and
enhancement of several pump stations along the pipeline. The additional capacity will enable the transportation of additional
Canadian crude from the Midwest to Gulf Coast refineries. Operational enhancements, such as new leak detection technology,
were also incorporated to support ExxonMobil Pipeline Company’s primary focus on operating its pipelines in a safe and
environmentally responsible manner. ‘The expansion of the Pegasus Pipeline is another example of how ExxonMobil Pipeline
Company is continuing to develop new projects that provide valued services and enhance supply security,’ said Gary
Pruessing, president, ExxonMobil Pipeline Company. ‘This expansion project builds upon the success of the Pegasus Pipeline
system reversal that began moving Canadian crude shipments to the Gulf Coast in 2006.’” [Business Wire, 6/17/09]
Bakken Shale Expanded Development
2012: Exxon Announced An Agreement To Significantly Increase Its Production Acrage In The Bakken Shale.
According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM) today announced an agreement that will significantly
increase its production acreage in the prolific Bakken oil shale region in the U.S. states of North Dakota and Montana.
ExxonMobil and its subsidiary, XTO Energy, signed an exchange agreement with Denbury Onshore, LLC, a subsidiary of
Denbury Resources Inc., to acquire 100 percent of Denbury’s Bakken shale assets, which consist of approximately 196,000 net
acres in North Dakota and Montana, with expected production in the second half of 2012 of more than 15,000 oil equivalent
barrels per day. The agreement increases ExxonMobil’s holdings in the Bakken region by about 50 percent to nearly 600,000
acres, giving the company a significant presence in one of the major U.S. growth areas for onshore oil production. ‘This
agreement provides a strategic addition to ExxonMobil’s North American unconventional resource base,’ said Andrew P.
Swiger, senior vice president of Exxon Mobil Corporation. ‘ExxonMobil’s financial and technical strength will support
continued development of America’s natural resources, which strengthens U.S. energy security while creating jobs and new
government revenues for vital services.’ In exchange for its Bakken shale assets, Denbury will receive $1.6 billion in cash and
acquire ExxonMobil’s interests in the Hartzog Draw field in Wyoming and Webster field in Texas, which currently produce
about 3,600 net oil equivalent barrels per day of natural gas and liquids.” [Business Wire, 9/20/12]
Hadrian South Deepwater Project In The Gulf
2015: Exxon Announced It Had Increased Its Gulf Of Mexico Production By More Than 45,000 Barrels By Initiating
Production At Hadrian South Fields. According to Business Wire, “Exxon Mobil Corporation (NYSE:XOM) announced
today it began production in the deepwater Gulf of Mexico at Hadrian South with facilities tied back to the nearby Lucius
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project, reducing additional infrastructure requirements. Daily gross production from Hadrian South, ExxonMobil’s deepest
subsea tie-back in nearly a mile and a half of water, is expected to reach approximately 300 million cubic feet of gas and 3,000
barrels of liquids from two wells. Hadrian South is a subsea production system with flowlines connected to the Anadarkooperated
Lucius truss spar, which started production in January. With the startup of Hadrian South and Lucius, ExxonMobil’s
total Gulf of Mexico net production capacity has increased by more than 45,000 oil-equivalent barrels per day. ExxonMobil
holds a 46.7 percent interest in Hadrian South and a 23.3 percent interest in Lucius. […] Hadrian South is located
approximately 230 miles offshore in the Keathley Canyon area of the Gulf of Mexico in about 7,650 feet of water. The
discovery well, Hadrian-2, was drilled in 2008 and the appraisal well, the Hadrian-4 sidetrack, was completed in 2009.
ExxonMobil operates Hadrian South; co-venturers Petrobras and Eni hold 23.3 percent and 30 percent, respectively. Hadrian
South adds to ExxonMobil’s Gulf of Mexico production operations, where the company has produced oil and gas for more
than 60 years.” [Business Wire, 3/30/15]
U.S. LNG Export Project
2012: Rex Tillerson Announced That ExxonMobil Was “Studying The Possibility Of Exporting Natural Gas From
North America.” According to the Dallas Morning News, “Exxon Mobil Corp. is considering exporting natural gas from the
U.S. The Irving oil giant became the country’s largest natural gas producer two years ago when it bought Fort Worth’s XTO
Energy. Since then, natural gas prices have continued to decline in the U.S. because the fuel is so plentiful. ‘We’re studying the
possibility of exporting natural gas from North America,’ Exxon chief executive Rex Tillerson told shareholders Wednesday at
the company’s annual meeting. ‘It appears we have enough’ to satisfy domestic demand.” [Dallas Morning News, 5/17/12]
2012: Rex Tillerson Said ExxonMobil Was Considering Exporting Gas From The Gulf Of Mexico, The West
Coast Of Canada Or Alaska. According to the Dallas Morning News, “Tillerson said he’s considering exporting gas
from the Gulf of Mexico, the west coast of Canada or Alaska, but declined to give details. He said such a move, which
could involve building a terminal to turn natural gas into liquid that could be loaded on a ship, would create jobs.
Exxon already operates liquefaction facilities to export from Qatar, and the company has a regasification terminal near
Sabine Pass for imports. Tillerson said any new project must compete with other export projects around the world.”
[Dallas Morning News, 5/17/12]
2012: Rex Tillerson Met With Alaska Governor Sean Parnell To Discuss Developing A Gas Export Terminal To Ship
Gas From Alaska’s North Slope To Asia. According to National Post’s Financial Post & FP Investing, “Alaska Governor
Sean Parnell said Thursday he met with the top executives of the state’s three large oil producers to discuss the potential for
ramping up natural-gas production and shipping it overseas. Mr. Parnell said he met for two hours in Anchorage with BP PLC
chief executive Bob Dudley, ConocoPhillips chief executive Jim Mulva and Exxon Mobil Corp. chief executive Rex Tillerson
to discuss the potential for developing a gas export terminal that would ship the commodity from Alaska’s North Slope to
markets in Asia.” [National Post’s Financial Post & FP Investing, 1/6/12]
2014: Exxon Applied For An Application To Export U.S. Natural Gas From Alaska
2014: Exxon Announced It Had Submitted A Request To Export LNG With The Deparment Of Energy As Part Of
Its Alaska LNG Project. According to Business Wire, “In another important step forward for the Alaska LNG project, an
application to export liquefied natural gas (LNG) was submitted to the U.S. Department of Energy. The export application
requests authorization to export up to 20 million metric tons per year of LNG for a period of 30 years to countries that have
existing free trade agreements with the U.S., as well as to non-free trade agreement countries. ‘This is a significant milestone
for the Alaska LNG project and demonstrates continued progress toward developing Alaska’s resources,’ said Steve Butt,
senior project manager. ‘Filing of an export application is a critical step in commercializing North Slope natural gas.’ The
Alaska LNG project would provide significant economic benefits to Alaskans including state revenues, new job opportunities
and access to decades of domestically produced natural gas for homes and businesses in Alaska. According to a study by
NERA Economic Consulting, submitted in support of the application, the Alaska LNG project would have ‘unequivocally
positive’ economic impacts in Alaska and the United States. The Alaska LNG project is anticipated to create up to 15,000 jobs
during construction and approximately 1,000 jobs for operation of the project.” [Business Wire, 7/21/14]
Exxon’s Export Application Requested Authorization To Export Up To 20 Million Metric Tons Per Year Of LNG
For A Period Of 30 Years To Countries That Have Existing Free Trade Agreements With The U.S. According to
Business Wire, “In another important step forward for the Alaska LNG project, an application to export liquefied natural gas
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(LNG) was submitted to the U.S. Department of Energy. The export application requests authorization to export up to 20
million metric tons per year of LNG for a period of 30 years to countries that have existing free trade agreements with the
U.S., as well as to non-free trade agreement countries. ‘This is a significant milestone for the Alaska LNG project and
demonstrates continued progress toward developing Alaska’s resources,’ said Steve Butt, senior project manager. ‘Filing of an
export application is a critical step in commercializing North Slope natural gas.’ The Alaska LNG project would provide
significant economic benefits to Alaskans including state revenues, new job opportunities and access to decades of
domestically produced natural gas for homes and businesses in Alaska. According to a study by NERA Economic Consulting,
submitted in support of the application, the Alaska LNG project would have ‘unequivocally positive’ economic impacts in
Alaska and the United States. The Alaska LNG project is anticipated to create up to 15,000 jobs during construction and
approximately 1,000 jobs for operation of the project.” [Business Wire, 7/21/14]
Exxon’s Foreign Policy
EXXON CARES ABOUT PROFIT NOT U.S. POLICY OR HUMAN RIGHTS
Tillerson Said That To Exxon Oil From Saudi Arabia Or Venezuela Is the Same As Oil From The U.S. Or
Canada
2013: Rex Tillerson On Exxonmobil’s Business Philosophy: “Wherever The Barrels Come From… A [Gas] Molecule
Is A [Gas] Molecule. And The Economic Value Created From The Other Side Of Burning That Molecule Is The
Same.” It doesn't matter whether it's a Saudi barrel, a Canadian barrel, a US barrel, or a Venezuelan barrel. ” According to
the UT Alumni Business Conference, "We are strong proponents of free and open markets, we're strong proponents of
allowing innovation and technology to come to bare on the problem. [...] So wherever the barrels come from, you know when
you burn it in your automobile, or you put it in a gas fire generator; a molecule a is molecule, a molecule is a molecule. And
the economic value created from the other side of burning that molecule is the same. It doesn't matter whether it's a Saudi
barrel, a Canadian barrel, a US barrel, or a Venezuelan barrel. It's all about acquiring supplies at an affordable reliable level,
putting them into the economic system and generating something of value." [Rex Tillerson at UT Alumni Business
Conference, 2/21/13]
2013: Rex Tillerson On Exxonmobil’s Business Philosophy: “It Doesn't Matter Whether It's A Saudi Barrel,
A Canadian Barrel, A US Barrel, Or A Venezuelan Barrel.” It doesn't matter whether it's a Saudi barrel, a
Canadian barrel, a US barrel, or a Venezuelan barrel.” According to the UT Alumni Business Conference, "We
are strong proponents of free and open markets, we're strong proponents of allowing innovation and technology to
come to bare on the problem. [...] So wherever the barrels come from, you know when you burn it in your
automobile, or you put it in a gas fire generator; a molecule a is molecule, a molecule is a molecule. And the economic
value created from the other side of burning that molecule is the same. It doesn't matter whether it's a Saudi barrel, a
Canadian barrel, a US barrel, or a Venezuelan barrel. It's all about acquiring supplies at an affordable reliable level,
putting them into the economic system and generating something of value." [Rex Tillerson at UT Alumni Business
Conference, 2/21/13]
Tillerson Opposed U.S. Sanctions Against Russia
Rex Tillerson Criticized U.S. Sanctions Against Russia As Harmful For Business. According to Russian Oil Refining
Industry, “Russia has found buyers for a stake in "Rosneft" oil company, despite the Western sanctions. As reported on
Thursday, the newspaper The New York Times, the deal to sell a stake to Swiss trader Glencore and the Qatar sovereign fund
"has denied the expectation that no investor would dare to buy a stake in Russian assets, given entered the West sanctions
against Russia." The emergence of foreign money in the deal "demonstrates that investors re-evaluate the issue of sanctions
following the election of Donald Trump, who played for the warming of relations with Moscow and considers Rex Tillerson,
chairman of ExxonMobil as a candidate for the post of US Secretary of State," the newspaper said. Tillerson criticized
sanctions as a harmful business after the result was stopped by a joint venture with Exxon "Rosneft" drilling in the Kara Sea in
the Russian sector Arktiki.” [Russian Oil Refining Industry, 12/9/16]
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Rex Tillerson Pushed For The Abolition Of Economic Sanctions Against Russia. According to Kommersant, “In 2013,
Rex Tillerson, who took part in the St. Petersburg International Economic Forum, even received from President Vladimir
Putin the Order of Friendship of hands "for significant contribution to the strengthening of cooperation in the fuel and energy
sector." Later, after the introduction of Western sanctions against Russia, he played for their abolition.” [Kommersant,
12/12/16]
Tillerson Kept An Open Mind To Doing Business With Iran
Despite American Foreign Policy Toward Iran And Iraq In The Early 2000’s, Tillerson Kept An Open Mind To
“Another Set Of Circumstances” That Might Come About In Those Countries In Coming Years. According to Private
Empire: ExxonMobil and American Power, “There was more concern within ExxonMobil about the corporation’s ability to
keep replacing its reserves than Raymond let on. The numbers the corporation was reporting to Wall Street at this time were
not impressive: At best, ExxonMobil seemed to be churning in place, finding only enough new oil each year to replace that
which it had pumped and sold. A former manager recalled a 2004 meeting at which the message was: ‘We can’t get enough
new assets to replace our reserves.’ As a result, geologists and scientists throughout the upstream division took a fresh 360-
degree review of reserve prospects worldwide. They revisited old assumptions. ‘They looked everywhere,’ the manager
recalled. Iraq offered a potential breakthrough in ExxonMobil’s access to equity reserves, but Raymond counseled patience.
ExxonMobil had owned oil in Iran and Iraq for decades during the twentieth century. It did not own oil in those countries in
2003, but twenty years into the future, as Tillerson put it, ‘we’ll have another set of circumstances in some of those countries.’
One attribute of a nation-state ExxonMobil lacked was an army or a navy of its own. China could ‘free ride’’ on the United
States Navy’s control of the open seas; Lee Raymond had no choice but to free ride on the Bush administration’s efforts to
subdue Iraq.” [Private Empire: ExxonMobil and American Power, pg. 247, 2012]
Exxon Opposed U.S. Sanctions On Libya, Iran, And Syria Prior To 9/11
Exxon Opposed All Oil Sanctions On Libya, Iran, And Syria Prior To The September 11 Terrorist Attacks. According
to Private Empire: ExxonMobil and American Power, “The corporation promoted free-trade philosophies at every turn and
opposed economic sanctions against oil producers, except in the most egregious cases; until September 11, Exxon­ Mobil
lobbyists in Congress had opposed oil sanctions imposed on Libya, Iran, and Syria. The corporation ‘s economic self-interest
on the sanctions issue was obvious, but the policy arguments mounted on PowerPoint slides by its in-house advocates were
broad: The creation of a free-flowing global oil pool, one shaped to the greatest possible degree by market incentives, would
promote American national security, ExxonMobil’s representatives insisted.” [Private Empire: ExxonMobil and American
Power, pg. 246, 2012]
Tillerson’s Predecessor Insisted Exxon’s Business Decisions Were Not Based On What Was In America’s
Interest
Lee Raymond, Rex Tillerson’s Predecessor, Allegedly Insisted That ExxonMobil Was Not A U.S. Company And
His Decisions Were Not Based On What Was Good For The U.S. According to Private Empire: ExxonMobil and American
Power, “ExxonMobil’s interests were global, not national. Once, at an industry meeting in Washington, an executive present
asked Raymond whether Exxon might build more refineries inside the United States, to help protect the country against
potential gasoline shortages. ‘Why would I want to do that?’ Raymond asked, as the executive recalled it. ‘Because the United
States needs it . . . for security,’ the executive replied. ‘I’m not a U.S. company and I don’t make decisions based on what’s
good for the U.S.,’ Raymond said.” [Private Empire: ExxonMobil and American Power, pg. 71, 2012]
Steve Coll: Rex Tillerson’s Predecessor, Lee Raymond, “Believed…That His Obligation As Exxon’s Chief
Executive Was Not Primarily To Support American Diplomacy.” According to Private Empire: ExxonMobil and American
Power, “It was extraordinary for the chief executive of a U.S.-headquartered multinational to lobby against a treaty he disliked
by appealing to a Chinese Communist government, among others, to adopt a negotiating position opposed to a sitting
American president. Raymond believed, however, that his obligation as Exxon’s chief executive was not primarily to support
American diplomacy-and certainly not when he disagreed with its assumptions so profoundly. The Beijing address was
‘seminal,’ recalled Frank Sprow, a senior Exxon executive who worked closely with Raymond on the climate issue.” [Private
Empire: ExxonMobil and American Power, pg. 83, 2012]
Tillerson’s Predecessor Favored Stable Dictatorships Over Unstable Democracies
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Private Empire: Tillerson’s Predecessor, Lee Raymond, Favored Working With Stable Dictatorships Rather Than
Unstable Democratic Governments. According to Private Empire: ExxonMobil and American Power, “As a global business
leader whose corporate profits depended on international stability, Raymond identified more with Republican realists such as
George H. W. Bush or his former national security adviser Brent Scowcroft than with the more idealistic activists and
democracy promoters around Bush’s son. ExxonMobil and its generations of home-bred executives felt they had learned long
ago to deal with the world as it was, to bargain as needed with dictators and authoritarian emirs and revolutionary leaders. The
transformational, Wilsonian streak in Bush’s democracy promotion in the Middle East after September 11 increasingly
discomfited Raymond. The ExxonMobil chairman still trusted Cheney and saw him frequently, and he admired greatly Bush’s
second Energy secretary, Samuel Bodman, a former oil industry executive. Throughout his cultivation of the Bush
administration, how­ ever, Raymond purposefully kept ExxonMobil at arm’s length from the administration’s attempts to
remake post-Saddam Hussein Iraq.” [Private Empire: ExxonMobil and American Power, pg. 248, 2012]
Experts Noted That Tillerson Himself Was A Practitioner of “Realpolitik”
Business Analyst and Consultant: “Exxon CEO Rex Tillerson Is ‘A Practitioner Of 'Realpolitik.’” According to the
Washington Times, “But Exxon CEO Rex Tillerson is ‘a practitioner of 'realpolitik' and a long-term player in the Arctic,’ and
Exxon still may ‘come out ahead,’ Mr. Ruben said. He expects the sanctions to be reduced or eliminated in less than a year,
possibly once Europe starts to feel the pinch of declining oil and gas imports from Russia as winter approaches.” [Washington
Times, 10/1/14]
Exxon Paid Indonesian Soldiers To Provide Security At Exxon’s Operations Despite Their History Of
Human Rights Abuses
ExxonMobil Paid The Salaries Of Indonesian Soldiers Who Provided Security At ExxonMobil’s Operations At The
Arun Gas Fields. According to Private Empire: ExxonMobil and American Power, “Sections of the military were on ExxonMobil’s
payroll to provide security at the perimeter of the Arun fields. These payments to Indonesian soldiers by the corporation were
mandated by ExxonMobil’s contract. In return, the corporation’s Indonesian partners agreed to ‘assist and expedite’
ExxonMobil ‘by providing . . . security protection . . . as may be requested’ by the oil company. As a practical matter this
meant that the Indonesian government supplied troops from the Tentara Nasional Indonesia, or Indonesian National Army,
known as the T.N.I., to protect the gas fields. Under the arrangement, ExxonMobil paid the Indonesian soldiers’ salaries; by
the time of the extortion campaign in early 2001, the going rate was about $294 per month for a typical enlisted man. The
soldiers were by all accounts-including that of the Bush administration-engaged in appalling human rights violations.” [Private
Empire: ExxonMobil and American Power, pg. 101, 2012]
U.S. Ambassador To Indonesia: “The Military/Police Offensive [In Aceh] Is Resulting In Significantly Growing
Human Rights Abuses.” According to Private Empire: ExxonMobil and American Power, “As ExxonMobil prepared to shut
down in Aceh, Ambassador Gelbard signed a confidential cable to Washington. He reported his embassy’s judgment that
G.A.M. was guilty of ‘atrocities.’ He also described, however, the ongoing crimes of Indonesian security forces that protected
Exxon Mobil’s gas fields: ‘The military/police offensive [in Aceh] is resulting in significantly growing human rights abuses.
Many civilian corpses bear marks of torture and their hands are tied behind their backs. Neighbors of those later found dead
often report that non-Acehnese men in plain­ clothes kidnapped the victims.’ ExxonMobil’s daily operations were fixed in the
middle of that dark violence.” [Private Empire: ExxonMobil and American Power, pgs. 101 - 102, 2012]
ExxonMobil’s Security Team Was Aware Of The Indonesian Armed Forces’ Poor Human Rights Record. According
to Private Empire: ExxonMobil and American Power, “ExxonMobil’s security team was aware of the T.N.I.’s human rights record,
internal corporate documents show. An ExxonMobil e-mail acknowledged ‘the poor reputation of the Indonesian military,
especially in the area of respecting human rights and in their predilection for ‘rogue / clandestine operations.’ Another internal
report found that the Indonesian soldiers around the Aceh gas fields ‘were undisciplined, lacked professional deportment and
were not in any state of readiness.’” [Private Empire: ExxonMobil and American Power, pg. 107, 2012]
EXXON DOES NOT REPRESENT THE UNITED STATES
2016: Rex Tillerson Said He Stresses To Foreign Governments: “I'm Not Here To Represent The U.S.
Government's Interest. I'm Not Here To Defend It, Nor Am I Here To Criticize It. That's Not What I Do I'm A
Business Man.” According to U Texas BBA, TILLERSON: "Well one of the things that I learned early on when I began to
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work overseas in foreign assignments is and this is not true of all of my competitors, not saying necessarily my U.S.
competitors but my foreign competitors, was to make sure that host governments, resource owners, whether it's Russia or
Yemen--wherever the Middle East. Make sure that they understand I'm not the U.S. government. I am an American company
and I will be bound by the laws of the United States and other countries, and I'm gonna follow those laws. But I'm not here
to represent the U.S. government's interest. I'm not here to defend it, nor am I here to criticize it. That's not what I do I'm a
business man.” [Rex Tillerson at U Texas BBA, 2/18/16]
2016: Rex Tillerson Said There Were Only Two Times Conveyed A Message Between A Foreign Leader And A U.S.
President And That Was “Because It Was A Matter Of National Security.” “According to U Texas BBA, “And you
would be surprised how many times I've had to have that conversation with heads of state who want to say to me, well look, I
know you can have some influence on the President, I need you to go back and tell him this. And there's only been two
occasions where I did that because it was a matter of national security and they did not know how to get a message to the
White House so I did it.” [Rex Tillerson at U Texas BBA, 2/18/16]
Rex Tillerson: “We Do Not Represent The U.S. Government As We Travel Around The World; We Never Pretend
To Do That. And We Never Ask The U.S. Government To Do Anything On Our Behalf. We Are Perfectly Willing
And Prefer To Enter Countries, Construct Our Contracts And Make Our Negotiations, Exxonmobil To The Host
Country.” According to the Charlie Rose Show, “REX TILLERSON: Well I think anything that promotes global energy
security is in U.S. national interest. And so any steps we take to develop new resources, to promote trading relationships, to
promote stability in countries from a socioeconomic and geopolitical perspective, that is -- that is all in U.S. national interest.
We do not represent the U.S. government as we travel around the world; we never pretend to do that. And we never ask the
U.S. government to do anything on our behalf. We`re perfectly willing and prefer to enter countries, construct our contracts
and make our negotiations, ExxonMobil to the host country.” [Charlie Rose Show, 3/7/13]
When Facing Kidnappings And Threats In Dangerous Places, Such As Nigeria, Exxon Preferred Not To Share
Information With The US Government For Fear Of Information Becoming Public. According to Private Empire:
ExxonMobil and American Power, “The British Foreign Office took a leading role. Washington involved itself as well. After
September 11, the State Department set up an enhanced interagency crisis response team that could rapidly deploy to help
governments respond to hostage takings, particularly those involving Americans. By 2006 the team had drilled for just the sort
of crisis that ExxonMobil now faced. But the idea that American and British intelligence and security officers might parachute
into Nigeria to sort out hostage crises made the Nigerian government ‘uneasy,’ as a State Department official involved put it. It
did not thrill ExxonMobil, either. The corporation’s security officers were at times reluctant to share information about
kidnappings-in-progress with the American government, fearing that sensitive details might be released under the Freedom of
Information Act or otherwise leak to the media, compromising negotiations. ‘Unless serious injury is imminent, companies
prefer to negotiate without Embassy intervention unless intervention could be discreet,’ a cable to Washington from Abuja
reported.” [Private Empire: ExxonMobil and American Power, pg. 459, 2012]
EXXON SEEKS TO BUILD PERSONAL RELATIONSHIPS WITH THE OFFICALS
OF FOREIGN NATIONS IT DOES BUSINESS WITH
2013: Rex Tillerson Said That ExxonMobil’s Success In Foreign Countries Came Down To Establishing “Personal
Relationships” And Developing Trust With Local Actors. According to the UT Alumni Business Conference,
"Everyplace I was transferred to work around the world; when I got transferred to Yemen or Russia the first thing I did was
try to find the experts and I'd say give me two books that will explain to me why people in the country are the way they are.
Because ultimately your success still comes down to personal relationships. Sitting down and developing the necessary trust at
the right level. That, we're gonna disagree from time to time, we're gonna have problems but we both ultimately want the same
thing and in our case we want the development of the natural resources: they will benefit the country, they will benefit my
shareholders, they will benefit the energy supply of the world; as long as we can stay focused on that, when we're having our
difficulties we trust one another enough to say, 'we'll figure out how to get through this crisis we're having right now.'" [Rex
Tillerson at UT Alumni Business Conference, 2/21/13]
EXXON SEEKS TO INFLUENCE THE FISCAL AND REGULATORY CLIMATE OF
FOREIGN COUNTIRES FOR EXXON’S BENEFIT
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2013: Rex Tillerson Said Whenever ExxonMobil Moves Into A Country It Does A Through Assessment, Including
“What Kind Of Influence” Exxon Can On Its Government And “Fiscal And Regulatory Environment.” and what
kind of influence may we be able to have on that. According to the UT Alumni Business Conference, "When we decide to
enter a country that we've not been in; a new entry. We do a very through assessment of the history of that country, it's
culture, it's geopolitical issues, its social issues, so what kind of an environment on the ground are we going to deal with from a
stability and security standpoint. Then we do a very in depth study of the government. What type of government do they
have and what kind of history if any do they have on creating fiscal and regulatory environment, and what kind of influence
may we be able to have on that. Then we look obviously all the other geologic risks and cost and that." [Rex Tillerson at UT
Alumni Business Conference, 2/21/13]
Questionable Relationships With Foreign Governments
CHAD
2001: Tillerson Spoke Optimistically About Exxon’s Future Investment In Chad
June, 2001: Rex Tillerson: “I View The Chad Project As A Clean Sheet Of Paper […] We Have The Opportunity To
Put Things In Place Perhaps The Way You'd Like To See Them Carried Out From The Very Beginning.” According
to the New York Times, “With the oil actually scheduled to come out of the ground only in 2003, the World Bank and the
Chad government are rushing to put in place a complex system of controls that will track the revenues and ensure that the
money is well spent. There are seven levels of oversight built into the project, and a group of international advisers for the
bank will follow the money trail for the entirety of the project's expected 25- to 30-year life. ‘I view the Chad project as a
clean sheet of paper,’ said Rex Tillerson, executive vice president of the ExxonMobil Development Company. ‘We have the
opportunity to put things in place perhaps the way you'd like to see them carried out from the very beginning.’” [New York
Times, 5/16/01]
Critics Say Chad Essentially Ceded Its Sovereignty To Exxon
Steve Coll: In Chad, ExxonMobil “Moved To Produce Oil On A Schedule Of Its Choosing And Under Contract
Terms That Enshrined Its Rights Ahead Of Those Of The Chadian Government.” According to Private Empire:
ExxonMobil and American Power, “ExxonMobil’s oil deal in Chad signaled the shifting sovereignties of a rising era in which
formal governments were losing relative power. A warlord running a teetering state surrendered prerogatives of his office in
exchange for the private capital and cutting-edge technology he required to strengthen his reign. A multilateral lending
institution brokered the agreement and afterward contracted with the London office of a global bank, Citigroup, to manage
and control most of the revenues due to the warlord’s government. Oxfam, Catholic Relief Services, Global Witness, and
other worldwide antipoverty campaigners organized conferences at which they taught Chadian civil society activists how to
secure their rights. ExxonMobil, having conceived and financed the oil project in the first instance, and having achieved its
business aims after more than two decades of effort, now moved to produce oil on a schedule of its choosing and under
contract terms that enshrined its rights ahead of those of the Chadian government.” [Private Empire: ExxonMobil and
American Power, pgs. 169 - 170, 2012]
U.S. Ambassador Chris Goldthwait: The Amount Of “Control The Government” Ceded To Exxonmobil In The
Southern Part Of The Country Was “Almost A Loss Of Sovereignty.” According to Private Empire: ExxonMobil and
American Power, “As Exxon’s work around Doba expanded, [U.S. Ambassador to Chad Chris] Goldthwait traveled through the
oil area and marveled at ‘just how much control the government [of Chad] has ceded to Esso over what happens in the south,
almost a loss of sovereignty.’ The company ‘calls the shots’ in four of the country’s most populous administrative regions, he
noted. Oil personnel managed security by suggesting travel routes and accompanying Chadian military and paramilitary patrols;
they controlled local roads and ran their own satellite radio network reaching to the capital; and their spending on employment
and construction in and around their oil fields dwarfed that by Chad’s government and foreign donors. Goldthwait observed:
‘Esso coordinates every step of the way with central and local authorities, but insists on what it needs; Esso rules the south.’”
[Private Empire: ExxonMobil and American Power, pg. 170, 2012]
Exxon’s Operations In Chad Supported That Country’s Authoritarian Dictator Who Was More
Accountable To Exxon Than To The World Bank Or United States
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Exxon’s Value To Chad’s President Deby Far Surpassed Development Aid Provided By The U.S. Government And
Gave Exxon Significant Sway Over The President Compared The American Foreign Policy. According to Private
Empire: ExxonMobil and American Power, “A small leadership and analysis team from ExxonMobil Global Security supported the
local guard force from the capital, N’djamena. The team worked from a compound of bungalows and offices that made up the
corporation’s country headquarters on the Avenue Charles de Gaulle. They were former police and retired military men. They
built an intelligence-collection operation separate from and in many ways better sourced than that run by the small Central
Intelligence Agency station in the nearby American embassy. ExxonMobil enjoyed privileged access to Deby and his military
and intelligence advisers because, in 2006, the corporation and its partners would transfer to Deby some $774 million, whereas
U.S. government aid, all totaled, including the counterterrorism assistance provided by the CI.A., was in the neighborhood of
1 percent of that amount. That equation had changed little since the World Bank­ sponsored oil project began; Deby’s aides
hardly required calculators to understand where their interests lay.” [Private Empire: ExxonMobil and American Power, pg.
352-353, 2012]
Chad’s President Deby And His Authoritarian Government Made $300 Million In Oil Revenues In 2005 At The
Same Time His Country Suffered Threats From Neighboring Dictators. According to Private Empire: ExxonMobil and
American Power, “Such was Deby’s predicament late in 2005: He feared an imminent rebel invasion aimed at overthrowing his
regime, but he lacked adequate means to defend his palace. The absurdity, from his perspective, was that at the very moment
this threat loomed, he was becoming richer than many of his neighboring dictators-or ‘authoritarian leaders,’ as Washing ton
sometimes preferred. Under the 1988 oil production contract, as world oil prices rose and ExxonMobil recouped the costs of
its initial oil field investments faster than expected, the revenue flowing to Deby also soared; it now exceeded all previous
projections. His government took in $300 million in 2005.” [Private Empire: ExxonMobil and American Power, pg. 357-358,
2012]
Deby’s Regime Oversaw A Reign Of Murder And Torture As Well As Encouraged The Esclation Of Conflict In Darfur
Throughout The 2000s, Déby Escalated A Bloody Proxy War Between Chad And Sudan Manifesting In The Darfur
Crisis. According to CBS News, “Deby played a key role in escalating a bloody proxy war between Chad and Sudan
throughout the 2000s, much of which manifested itself in the Darfur crisis, and has resulted in accusations of gross atrocities
on both sides.” [CBS News, 6/19/11]
The Chadian Army Has Been Accused Of Using Child Soldiers As Young As Ten Years Old In Its Many
Conflicts. According to CBS News, “The Chadian army is currently beset by accusations that it frequently uses child
soldiers in its many conflicts, sometimes as young as ten years old.” [CBS News, 6/19/11]
Déby Has Fought Government Opponents With “A Regime Of Murder, Torture And Enforced Disappearance.”
According to CBS News, “As part of the Deby regime's unending fight against insurgents, state security forces are accused of
carrying out ‘a regime of murder, torture and enforced disappearance of suspected government opponents,’ according to
Amnesty International.” [CBS News, 6/19/11]
2006: Exxon Went Behind The World Bank When It Tried To Stop Chadian Arms Purchases And Chad
Threatened To Expel Exxon
In 2006, Exxon Intervened In A Dispute Between Idriss Déby, The Authoritarian Leader Of Chad And Paul
Wolfowitz, Then The Leader Of The World Bank, Who Sought To Prevent Chad From Buying Arms. According to
TIME, “There was Exxon's meddling in a 2006 standoff between Idriss Déby, the authoritarian leader of Chad — a Central
African country with rich oil reserves — and Paul Wolfowitz, then the leader of the World Bank. Déby wanted weapons to
fight rebels supported by nearby Sudan, but good-governance clauses in loans Chad had received from the World Bank
restricted the country's ability to purchase arms. Wolfowitz was ready to freeze some of Sudan's bank accounts, prompting
Déby to threaten to effectively kick Exxon out of Chad.” [TIME, 5/1/12]
Exxon Sought A Delay When The World Bank Threatened To Freeze Oil Revenues To The Chadian Govnerment If
The Government Refused To Use The Revenues Specifically For Health, Education, And Development As Agreed
To In Contracts. According to Private Empire: ExxonMobil and American Power, “Wolfowitz tipped Deby into a rage. His aides
told Ron Royal at Exxon­ Mobil that if Exxon went along with the World Bank any longer, Chad might order the corporation
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to shut down all oil production. Royal met with Ambassador Wall at the U.S. embassy. Closure of Chad’s fields ‘would be
catastrophic,’ he said, and would likely set off a chain of loan defaults. ExxonMobil wanted a cooling-off period and had asked
the World Bank for time to negotiate a compromise, but the bank had responded with a letter to Irving, declining ExxonMobil
‘s request.” [Private Empire: ExxonMobil and American Power, pg. 361, 2012]
To Protect Their Presence In Chad And The Resulting Billions In Profit, “Exxon Lobbied The U.S.
Ambassador To Chad To Fix The Problem.” According to TIME, “Wolfowitz was ready to freeze some of
Sudan's bank accounts, prompting Déby to threaten to effectively kick Exxon out of Chad. That could have cost the
company billions of dollars. So Exxon lobbied the U.S. ambassador to Chad to fix the problem, which led to Déby
getting his weapons and Exxon its oil.” [TIME, 5/1/12]
Private Empire: Exxon “Was More Interested In The Survival Of Chad’s Oil Production Than It Was In The World
Bank’s Experiment In Nation Building.” According to Private Empire: ExxonMobil and American Power, “By now
ExxonMobil had made its own choice clear: It was more interested in the survival of Chad’s oil production than it was in the
World Bank’s experiment in nation building. If Deby found a way to pay back his bank loans, and also stuck to the letter of his
oil production contract, ExxonMobil would stay with him, according to State Department cables and ExxonMobil managers
involved. The corporation wanted to keep its options open: ‘Essa is seeking to stress its neutral position vis a vis the dispute
between the [World Bank] and the [government of Chad], as it is not a signatory to the agreement,’ Wall reported to
Washington . Ex xonMobil described its general approach to troubled African countries where it produced oil by emphasizing
that the corporation was merely ‘a guest . . . and as a guest we’ve got to show respect. . . . It’s not up to us to go into a
sovereign country and tell them how they ought to be governing their people.’ That was an Orwellian defense in this case,
because the Chad oil project had been made possible for ExxonMobil in the first place precisely because the corporation had
supported the World Bank’s plan to control the uses of Chad’s oil funds.” [Private Empire: ExxonMobil and American Power,
pg. 362-363, 2012]
Exxon Told Deby That Royalties From Exxon’s Operations Would Soon Provide Enough To Offset Foreign Aid Loses By
Breaking Its Contract With The World Bank
Exxon Proposed To President Deby That Royalties From Exxon’s Oil Operations Would Soon Provide Enough
Revenue For Chad To Get Out Of Its Contract With The World Bank, Allowing The Country To Spend Funds On
Anything. According to Private Empire: ExxonMobil and American Power, “Royal met with Deby and warned him that
‘dismantling oil operations and forcing the World Bank to leave’ would ‘jeopardize the reputation of the country and the
possibility of foreign investment.’ He also told Deby for the first time that Chad would soon receive a tax windfall-if the
president allowed ExxonMobil to keep pumping oil. Deby was sur­ prised-he asked for specifics, but remained noncommittal
about any compromise. Royal contacted Wall again and told him that he feared a ‘melt-down’ and a final collapse of the entire
Chadian oil project-six years and several billion dollars of investment, so far.17 Royal proposed various plans by which
ExxonMobil might win support from the Bush administration to defy Wolfowitz’s hard line. Under Royal’s plans, Exxon­
Mobil would pay Deby royalties while international talks proceeded. The oil company would put some of this cash directly
into Chad’s treasury, defying and undermining Wolfowitz’s freeze.” [Private Empire: ExxonMobil and American Power, pg.
362, 2012]
EQUATORIAL GUINEA
In Equatorial-Guinea, Exxon And Oil Companies Effectively Undertook American Military Presence, Aiding The
Equato-Guinean Navy And Coast Guard In Monitoring Hostile Threats And Illegal Immigration. According to Private
Empire: ExxonMobil and American Power, “The crypto-sanctions Smith complained about, as well as the limitations of
Equatorial Guinea’s military forces, meant that it was easier for American-headquartered oil corporations to handle
aspects of Malabo’s defenses than for Obiang to establish the capacity within his own Ministry of Defense. ‘The
companies have better capacity to surveil than we do,’ Brigadier Francisco Nugua, a special adviser to Obiang for
national security, said. ExxonMobil and its peers installed and operated sophisticated ‘domain awareness’ equipment in
the waters around Equatorial Guinea, radars and integrated communications that allowed the companies’ security
departments to track, identify, and monitor potentially threatening naval traffic. ‘If they see something, they
communicate,’ Nugua said. Cooperation between the oil companies and the Equato­Guinean navy and coast guard
evolved to the point where, by 2009, the oil firms monitored ‘not only a hostile invasion, but illegal immigration’ into
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Equatorial Guinea by boat from neighboring, poorer countries such as Cameroon.” [Private Empire: ExxonMobil and
American Power, pg. 515, 2012]
Private Empire: Exxon continued to operate in West Africa despite “the coup plots, kidnapping raids, corruption,
and factionalism menacing the corporation’s host regimes in Nigeria, Chad, and Equatorial Guinea.” According to
Private Empire: ExxonMobil and American Power, In West Africa, ExxonMobil’s managers continued to bring oil to market
despite the coup plots, kidnapping raids, corruption, and factionalism menacing the corporation’s host regimes in Nigeria,
Chad, and Equatorial Guinea .After millions of dollars in expenditures on Washington lobbyists, Equatorial Guinea’s
president, Teodoro Obiang, managed for the first time to have his photograph taken at the side of an American counterpart:
Barack Obama, who agreed to pose with Obiang at a museum reception in New York. Obama’s administration continued to
license military and police trainers to support Obiang’s regime, although the White House, cautioned by human rights activists
and congressional critics of Equatorial Guinea, held back from partnership. Obama’s Justice Department filed a civil lawsuit
against Obiang’s free-spending son, Teodoro, seeking forfeiture of his Malibu mansion and other assets on the grounds that
Obiang’s money came from ‘foreign official corruption.’ ExxonMobil produced more than 600,000 barrels of oil and gas
liquids per day from West Africa; the corporation produced roughly the same amount of oil from the Gulf of Guinea as it
produced from the United States and Canada. In 2011, Walter Kansteiner,the assistant secretary of state for African affairs
during the first term of the George W. Bush administration, joined ExxonMobil as a senior adviser on the corporation’s Africa
strategies.” [Private Empire: ExxonMobil and American Power, pg. 622, 2012]
INDONESIA
2006: Exxon Won A 5-Year Dispute Over Its Development Of Indonesia’s Untapped Oil Reserves
2006: Under Rex Tillerson’s Leadership, Exxon Mobil Prevailed In A Five-Year-Old Dispute Over The
Development Of Indonesia's Largest Untapped Oil Reserves. According to the New York Times, “But after taking over
as chairman, Mr. Tillerson has already scored two major coups: gaining access to the world's fourth-largest oil field, in the
United Arab Emirates, and prevailing in a five-year-old dispute over the development of Indonesia's largest untapped oil
reserves. Mr. Tillerson met with each country's leaders to break deadlocked talks or make a final pitch for his company. In
Indonesia, the government fired the head of the national oil company, who opposed Exxon. His successor quickly signed a
deal. But if both agreements proved a success for Mr. Tillerson, they also mask a starker reality for oil companies: their
access to the world's top hydrocarbon deposits is more limited than ever. At Exxon, the problem is magnified by the
company's size. Each year, its geologists must find huge amounts of oil and gas -- nearly 1.5 billion barrels -- just to replace the
company's production of about 4 million barrels a day.” [New York Times, 3/30/06]
IRAN
2015: Exxon Denied Lobbying The U.S. Government Regarding Iran Sanctions. According to Business Wire, “Media
reports that ExxonMobil is lobbying the U.S. government on Iran sanctions are inaccurate. ‘ExxonMobil is not lobbying on
Iran sanctions,’ said Ken Cohen, vice president of Public and Government Affairs. ‘Erroneous media reports resulted from
errors in a consultant’s lobbying disclosures. Current U.S. law prohibits American companies from operating in Iran.’”
[Business Wire, 5/22/15]
LIBYA
Exxon Pursued Business With Gadaffi’s State-Owned Oil Company National Oil Corporation
2005: Rex Tillerson Voiced Optimism Regarding ExxonMobil’s Prospects In Libya, Saying, “Libya Is Just Getting
Started. […] There's More To Come. We Have A Lot To Offer. We'll Just See How That Plays Out.” “And while
ExxonMobil was among several international oil companies that placed bids in Libya's first post-sanctions oil licensing round,
the company is in no rush to return there, according to Tillerson. ‘Libya is just getting started,’ he said. ‘There's more to come.
We have a lot to offer. We'll just see how that plays out.’ What was in Libya's offering was new exploration areas, ‘with all the
usual risks,’ Tillerson continued. Terms and structure offered ‘no flexibility about making it better value for both parties.’ He
cited ‘fierce competition’ for new Libyan blocks from traditional competitors and from new ones, such as state companies,
‘who have different economic thresholds they're trying to achieve’ and ‘different view of commodity price costs.’” [Platts
Oilgram News, 3/10/05]
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2007: Rex Tillerson Planned To Visit Libya To Explore Business Opportunities With Libya's State-Run National
Oil Corp. According to Bloomberg News, “Exxon Mobil Corp. chief executive Rex Tillerson will visit Libya to examine ways
to increase business for the world's largest oil company in the north African state, Libya's state-run National Oil Corp. said.
National Oil didn't say on its Web site when Mr. Tillerson is coming to Libya, or give details about projects he may discuss in
the country that holds Africa's largest crude oil reserves. Exxon is among U.S. companies that have resumed work in Libya
since 2004, when U.S. President George W. Bush's administration ended two decades of sanctions imposed on Muammar
Qaddafi's regime because of accusations that he was sponsoring terrorism. Exxon won exploration rights in an offshore plot
auctioned by Libya in October, 2005.” [Bloomberg News, 2/8/07]
2009: Exxon Announced It Started Drilling Libya’s First Deepwater Exploration Well With The Collaporation Of
Libya’s State-Owned National Oil Coporation. According to Business Wire, “ExxonMobil Exploration Company
announced today that its affiliate, ExxonMobil Libya Limited, has started drilling the first deepwater exploration well in Libya.
The A1-20/3 well is being drilled in Contract Area 20 (CA 20) located offshore in the Sirte Basin, northeast of the city of
Misrata, in the Libyan Mediterranean Sea. The rig, contracted from Noble Africa Limited and named the Noble Homer
Ferrington, is capable of operating in water depths up to 7,200 feet (2,195 meters), and can drill to a depth of 30,000 feet
(9,144 meters). It is designed for high efficiency and safety, and is able to operate in many global deepwater environments. Phil
Goss, President of ExxonMobil Libya Limited, said, ‘ExxonMobil has a long and successful history of working in Libya, where
we previously operated as Esso and Mobil. ‘We are pleased to start drilling our first deepwater exploration well in Libya based
on the rigorous technical work conducted by our Libyan National and expatriate scientists, and in collaboration with the
National Oil Corporation (NOC) to progress our exploration program.’” [Business Wire, 7/16/09]
RUSSIA
Tillerson Built A Relationship Between Exxon And Russia Independent Of The U.S. Government
Private Empire: Exxon Preferred To Operate On Its Own When It Came To Negotiating With Russia. According to
Private Empire: ExxonMobil and American Power, “ExxonMobil ran an office in Moscow, headed by a former Australian diplomat,
Glenn Waller. Rosemarie Forsythe, the former Clinton administration National Security Council analyst, also advised
Raymond during ExxonMobil’s talks in Russia after 2001. The corporation, as ever, believed it was better off handling things
in Moscow on its own. ‘Exxon operates independently,’ recalled Leonard Coburn, who worked at the Department of Energy
on the Bush administration’s Russian oil initiative. ‘They think they can do better than the [U.S.] government and often they
do.’’ Occasionally, Lee Raymond might turn to Vice President Cheney or another very senior official to give the Russians ‘a
good kick in the pants,’ as Co­ burn put it, about a specific tax or policy stalemate in Moscow. Otherwise, the corporation
negotiated in private.” [Private Empire: ExxonMobil and American Power, pg. 255, 2012]
Rex Tillerson Managed Exxon’s Russia Account And Formed An Agreement With Russian-Owned Rosneft To
Keep Exxon And The Russian Government “On The Same Side Of The Table” If Issues Arose. According to Private
Empire: ExxonMobil and American Power, “Rex Tillerson had followed Koonce as the lead ExxonMobil executive on Russia. He
managed the Russia account from a base in Texas, flying over as necessary. Tillerson formed a friendship with the Sakhalin
governor and decided to rope in a state-owned Russian oil firm as a project partner, so that ExxonMobil and the Russian
government would be ‘on the same side of the table,’ as Tillerson put it later, if disputes over the project arose. ExxonMobil
had connections at Rosneft, one of the smaller state-owned oil and gas companies, with about 10 percent of the country’s
reserves, a company widely regarded as a bureaucratic mess even by Russia’s standards.” [Private Empire: ExxonMobil and
American Power, pg. 256, 2012]
Tillerson Rejected The Bush Administration’s Assistance Renegotiating Exxon’s Contract With Russia
In 2006, When Putin Demaned To Renegotiate An Exxon Contract In Russia, Tillerson Rejected The Bush
Administration’s Help, Believing Exxon Would Be Better Suited To Handle Putin On Its Own. According to Private
Empire: ExxonMobil and American Power, “When Vladimir Putin during 2006 demanded to renegotiate one of ExxonMobil’s
remaining contracts in Russia, President George W. Bush telephoned Rex Tillerson to discuss the affront, according to
reports of the call that circulated among the corporation ‘s managers. The Bush administration was by now thoroughly
disabused of its romanticism about oil capitalism under Putin; its optimism had ended when Putin arrested Mikhail
Khodorkovsky, the president of Yukos, with whom Lee Raymond had negotiated unsuccessfully during 2003. Three
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years later, Khodorkovsky remained in prison; he made impassioned speeches about democracy while appearing
periodically in Russian courtrooms, confined to a cage, and he was emerging as an unlikely symbol of credible dissent.
Bush said that his administration stood ready to dive into oil diplomacy to push back against Putin’s attempts at
renegotiation. Tillerson thanked the president, but afterward, through its Washington office, the company begged the
Bush administration to stay away. The message ExxonMobil’s K Street staff sent to the White House was, in essence,
Putin is one of the less offensive heads of state we deal with; we’ll do much better on our own.” [Private Empire:
ExxonMobil and American Power, pg. 418, 2012]
2014 – Present: Tillerson Opposed U.S. Economic Sanctions On Russia
Rex Tillerson Said ExxonMobil Did Not Support Sanctions Because Effective Sanctions Were “Difficult.” According
to Platts Oilgram News, “‘We've been through sanctions before,’ said the CEO, speaking broadly about ExxonMobil's global
operations. But he said his company generally does not support sanctions because they are not effective unless they are wellimplemented
which he called ‘difficult...You have to ask who they harm and whether they're effective or not.’” [Platts Oilgram
News, 5/29/14]
2014: Rex Tillerson Said ExxonMobil Opposed U.S. Sanctions Against Russia. According to Russian Oil Refining
Industry, “Partner "Rosneft" US oil giant ExxonMobil Corp (one of the world's largest companies by market capitalization)
does not support US sanctions against Russia, Reuters reported with reference to the general director of Exxon, Rex Tillerson.
At the head of the Ministry of Energy and "Rosneft" last week, whose head Igor Sechin was in May, in the sanctions list USA
as a person from an environment of the president of Russia, said that ExxonMobil is in Russia, where develops one of the
largest for themselves overseas projects - Sakhalin-1 . "We are extremely proud of our achievements in Russia we them good
partners." - said Tillerson. Several Western oil companies in recent years have left Russia because of the deterioration of the
business climate, but Exxon continues to work like other giants, including British BP (has a 19.75% stake in "Rosneft") and
French Total.” [Russian Oil Refining Industry, 5/30/14]
Rex Tillerson On U.S. Sanctions On Russia For Seizing Crimea: “We Always Encourage The People Who Are
Making Those Decisions To Consider The Very Broad Collateral Damage Of Who Are They Really Harming With
Sanctions.” According to the New York Times, “Western sanctions prohibiting certain energy development activities have
posed a hurdle to Exxon's in-vestments in Russia, particularly a joint venture with Rosneft that was supposed to start drilling
for oil in 2014 in the Kara Sea, part of the Arctic Ocean. Mr. Tillerson has spoken out against sanctions in part be-cause the
company is unable to collect revenues from an investment in an oil and gas consortium to which Exxon belongs that operates
off Sakhalin Island. "We always encourage the people who are making those decisions to consider the very broad collateral
damage of who are they really harming with sanctions," Mr. Tillerson told shareholders at the company's 2014 annual
meeting.” [New York Times, 12/10/16]
Rex Tillerson Lobbied Against U.S. Sanctions On Russia After Russia Invaded Ukraine And Seized The Crimean
Peninsula. According to the Los Angeles Times, “When Russian forces invaded Ukraine and seized the Crimean peninsula in
2014, Tillerson lobbied against U.S. sanctions because Exxon would lose millions of dollars. The Obama administration, with
congressional backing, imposed the sanctions on Russia anyway, and Exxon was forced to abandon projects estimated to have
cost it about $1 billion.” [Los Angeles Times, 12/11/16]
2016: Tillerson Said Exxon Wanted To Resume Business In Russia Without Sanctions
2016: Rex Tillerson Said Exxon Was Eager To Get Back To Working With Russia Without Sanctions. According to
CNN, “HARLOW: I have to button it up, guys. But on the business point, I mean, there is an important point to make. And
this is just fact. There is no opinion. In the fact that Exxon has this huge deal in Russia. That because of the sanctions against
Russia got halted, that has cost Exxon about $1 billion so far, according to regulatory filings. Rex Tillerson in March said,
we're very anxious to get back to work there. And that therein lies the questions about what hat you're wearing as the
businessman he is now and if you can completely take that off, be-coming secretary of state.” [CNN, 12/11/16]
2016: Rex Tillerson Said He Told Russian Officials “When The Sanctions Are Over, We'll All Sit Down And Get
Back To Work’n.” According to U Texas BBA, TILLERSON: "And so we've got the sanctions in place right now and he
understands I'm gonna comply with the sanctions. There's not any conversation otherwise about that. And they recognize
that. The first time I went over to see them after the sanctions were in place I was a little nervous. And it was interesting
because the first question they asked me was, 'well, how are you doing? Are you okay?' And I said, 'well, yeah I'm fine, why
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do you ask this?' They said,' well we just wondered whether your government was coming after you because you've been
doing business with us.' So they were more worried about me. So they understood. You know, we understand you can't do
certain things now. And what I tell them is, you know, we're not going anywhere, we've been around 130 years. When the
sanctions are over, we'll all sit down and get back to work’n and until then we'll just have to comply with the law." [Rex
Tillerson at U Texas BBA, 2/18/16]
Rex Tillerson Said ExxonMobil Would Resume Its Arctic, Deepwater And Tight Oil Projects In Russia If The U.S.
Lifted Sanctions. According to Platts Oilgram News, “ExxonMobil would be eager to resume its Arctic, deepwater and tight
oil projects in Russia if US sanctions are lifted, CEO Rex Tillerson said Wednesday. The US supermajor in 2014 was forced to
suspend its highly anticipated exploration work in the Russian Arctic Kara Sea with state-owned Rosneft, after the US
imposed sanctions on Russia over the Ukraine crisis. ExxonMobil, under a 2011 strategic cooperation agreement it signed with
Rosneft, also had plans to ex-plore in deepwater offshore the Black Sea and in unconventional tight oil formations in West
Siberia. ‘We would be interested in getting back to work,’ Tillerson said at ExxonMobil's analyst meeting, which was webcast
from New York. ‘We'll just have to wait. We're going to remain in full compliance with the sanctions.’ The sanctions bar the
transfer of Western technology necessary for Arctic, deepwater and shale oil pro-jects, while also restricting Russian
companies' access to Western financing.” [Platts Oilgram News, 3/3/16]
2015: Tillerson Visited Russia For The First Time Following The Imposition Of U.S. Sanctions
Rex Tillerson Visited Moscow In March 2015 After The U.S. Imposed Sanctions On Russia. According to Platts
Oilgram News, “ExxonMobil CEO Rex Tillerson visited Moscow Wednesday to discuss the company's oil projects in Russia,
in talks expected to include potential alternatives to its suspended joint project with Rosneft in Russia's Arctic in the wake of
Western sanctions, according to a source. Tillerson is likely to discuss ongoing opportunities for cooperation with
ExxonMobil's key Russian partner Rosneft, after sanctions imposed by the US against Russia over its role in the Ukraine crisis
effectively blocked ExxonMobil's involvement in some operations, including the Arctic Kara Sea project.” [Platts Oilgram
News, 3/19/15]
Rex Tillerson Met With Deputy Prime Minister Arkady Dvorkovich, Energy Minister Alexander Novak,
Finance Minister Anton Siluanov And Igor Sechin In March 2015. According to ITAR-TASS, “Earlier in March
ExxonMobil CEO Rex Tillerson came to Moscow for talks. Tillerson met with Deputy Prime Minister Arkady
Dvorkovich, Energy Minister Alexander Novak, Finance Minister Anton Siluanov, and twice with the Executive
Chairman of Rosneft Igor Sechin. As media reported, the officials listened to ExxonMobil arguments, but failed to
come to an agreement. The issue will be further discussed by the Russian Government.” [ITAR-TASS, 4/2/15]
2014: Tillerson Said Russia’s Actions In Ukraine Would Not Lead To Any Action By Exxon
Rex Tillerson Said That The Situation In Ukraine Would Cause “No Impact On Any [Of ExxonMobil’s] Activities
Or Plans…Barring Governments Taking Steps Beyond Our Control…Like Sanctions.” According to Dallas Morning
News, “Exxon Mobil Corp. has put its Ukraine offshore natural gas prospect on hold because of the political situation there,
company officials told analysts Wednesday. But Exxon is pressing ahead with large-scale investments in Russia, as well as a
Black Sea oil project just east of Crimea, they said. […] Rex Tillerson, Exxon Mobil’s chairman and CEO, said the company’s
Russian projects were moving ahead. ‘As for the current situation, obviously it’s early days,’ he said. ‘There’s been no impact
on any activities or plans at this point, nor would we expect there to be any, barring governments taking steps beyond our
control. ‘In terms of our view of country risk, geopolitical risk, other than things like sanctions, we don’t see any new
challenges out of the current situation,’ he said.” [Dallas Morning News, 3/6/14]
Rex Tillerson On Tensions Between Russia And Ukraine: “I Don’t See Any New Challenges” For
ExxonMobil. According to Platts Oilgram News, “Overseas, ExxonMobil has a ‘fairly active’ exploration program in
Russia, said Tillerson, who said ongoing tensions between Russia and Ukraine have had no impact on the company’s
operations there. ‘I don’t see any new challenges,’ Tillerson said, adding government actions were beyond their
control.” [Platts Oilgram News, 3/6/14]
2015: Tillerson On Russian Invasion Of Crimea: “We Don't Take Sides In Any Geopolitical Events”
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Rex Tillerson On Russia Conflict In Ukraine: “We Don't Take Sides In Any Geopolitical Events.” According to
National Post’s Financial Post & FP Investing, “Tillerson is scheduled to brief a gathering of investors and analysts on the
company's growth outlook at the New York Stock Exchange on Wednesday. Exxon closed the transaction for the additional
acreage in May, completing an agreement made 15 months before, said Patrick McGinn, a company spokesman. The May
closing was about two months after the Russian annexation of Crimea that spurred U.S. and EU leaders to escalate sanctions.
‘We don't take sides in any geopolitical events,’ Tillerson said of the conflict in Ukraine a year ago.” [National Post’s Financial
Post & FP Investing, 3/4/15]
2015: Filed Complaint Against Russia For Overpayment of Taxes
2015: Exxon Mobil Filed A Complaint Over $500 Million In Over Paid Profit Taxes To Russia. According to ITAR-
TASS, “American Exxon Mobil informed the Russian Energy Ministry on Monday, March 30 about lodging a claim to the
Stockholm arbitration requiring changing the interpretation of the Sakhalin-1 project Produc-tion-Sharing Agreement (PSA)
paragraph on taxes, Vedomosti newspaper reported Wednesday citing Rus-sian Energy Minister Alexander Novak.
ExxonMobil believes its subsidiary Exxon Neftegas Limited overpaid approximately $500 mln profit taxes on its Sakhalin-1 oil
and gas project.” [ITAR-TASS, 4/2/15]
Exxon Mobil Argued It Did Not Need To Pay The 35% Tax That Was In Place At The Time The Original
Deal Was Set, But Should Pay The 20% Rate Set By Russia In 2009. According to ITAR-TASS, “At the time of
the PSA signing in the mid-1990s profit tax of 35% was imposed in Russia. Russia reduced the profit tax in 2009 to
20%, but ExxonMobil continued to pay at the earlier level of 35%, although it applies to the Finance Ministry with a
request to lower the rate. According to the newspaper, Russia believes that PSA terms are not subject to change
within its period of validity.” [ITAR-TASS, 4/2/15]
Tillerson Did Business With State Sponsors of Terrorism; Expressed Openness
To Doing It Again
UNDER TILLERSON’S LEADERSHIP EXXON JOINT VENTURE AND
AFFILIATES HAD SALES WITH IRAN
Exxon Joint Venture Made Millions in Sales in Iran, Including With the Iranian National Oil Company
Until 2006, An Exxon Joint Venture Sold Gasoline Additives to Iran. According to the New York Times, "Infineum
U.K., a joint venture in which ExxonMobil has a 50 percent indirect ownership, sold gasoline additives to Iran, but stopped in
2006, according to Cynthia Bergman White, company spokeswoman. Exxon is a big supplier of fuel to the Department of
Defense." [New York Times, 2010]
Exxon Joint Venture Had $53.2 Million In Sales To Iran Between 2003 And 2005. According to a February 7, 2006 letter
from Exxon to the Securities and Exchange Commission, “In addition, we have a 50% interest in Infineum, a chemicals joint
venture with Shell. We each own a 50% interest in the joint venture through respective European subsidiaries. However,
Infineum's European affiliates manage the business transactions in the Three Countries under a policy and procedure
consistent with U.S. legal requirements and no United States person is involved in those business transactions. Infineum's
European affiliates had sales to entities in the Three Countries as follows:
Country 2003 2004 2005
(millions of dollars)
Iran $20.5 $16.6 $16.1
Sudan $0.3 $0.3 $0.0
Syria $0.3 $0.6 $0.2
[Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon Joint Venture Did Business With The Iranian National Oil Company. According to a July 14, 2006 letter
from Exxon to the Securities and Exchange Commission, “With respect to Iran, all but one of the customers of
Infineum were private entities to the best of our knowledge. The exception was a customer which is wholly-owned by
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the Iranian National Oil Company. With respect to Syria, all of the customers were private entities to the best of our
knowledge. Infineum sales were fuel and lubricant additives developed for use in internal combustion engines. To the
best of our knowledge the additives sold to entities in Iran and Syria were blended into fuels and lubricants used in
motor vehicles. Infineum is not aware of these additives having been used in military applications. All of these sales
were legal under the applicable U. S. laws and regulations.” [Exxon letter to the Securities and Exchange Commission,
7/14/06]
Tillerson Became President Of Exxon In 2004; CEO in 2006 [Exxon, accessed 12/10/16]
Exxon Affiliates Made Sales to the Iranian Government
Exxon Affiliates Made Sales To An Iranian Embassy And Iran’s Mission To The UN. According to a letter from
Exxon to the Securities and Exchange Commission, “In April 2003, Mobil Oil Senegal, a Senegal corporation, sold fuel
coupons at market value, exclusive of excise taxes, for 11,400 liters of gasoil valued at about $7,438 to the Iranian Embassy in
Dakar. These fuel coupons were redeemable for fuel at participating retail service stations. Deville-Mazout Sarl, a Swiss
affiliate, made three deliveries of heating oil to the Iranian Mission to the UN in Geneva: April 29, 2003 (6,002 liters valued at
$1,893) ; June 2, 2004 (6,804 liters valued at $2,586); and September 15, 2005 (5,696 liters valued at $3,746). These were
telephone spot sales.” [Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon Affiliates Made Sales To Iran Air And The Iranian Embassy In Paris. According to a letter from Exxon to the
Securities and Exchange Commission, “ExxonMobil Middle East Supply Company Ltd. (‘EMMES’), a Bahamas corporation,
owns a minority (49%) interest in the Arabian Petroleum Supply Company (‘APSCO’), a Saudi Arabian joint stock company.
We have limited information on APSCO operations but what we have suggests that APSCO may sell finished or unfinished
lubricants into Syria or through Syria to other destinations. APSCO also has sold jet fuel (purchased from Saudi Aramco) to
Iran Air. This business was solicited directly by APSCO. In 2003, EMMEM, which sold lubricants to APSCO, learned that
earlier in the year, APSCO had sold Mobil-branded lubricants supplied by EMMEM to Iran Air (300 barrels) and Sudan
Airways (28 barrels). While EMMEM’s supply of lubricants to APSCO was lawful, EMMEM ceased further supply of
lubricants to APSCO until it obtained APSCO’s agreement that EMMEM supplied lubricants would not be resold to these
customers or exported outside of Saudi Arabia. Worex S.N.C., a French affiliate, made deliveries of heating oil to the Iranian
Embassy in Paris: 8,300 liters valued at $4,372 in 2003; 12,400 liters valued at $7,670 in 2004; and 6,400 liters valued at $4,906
in 2005. Worex also made deliveries of heating oil to the Syrian Embassy in Paris: 36,300 liters valued at $19,030 in 2003,
43,500 liters valued at $26,910 in 2004 and 22,000 liters valued at $16,860 in 2005.” [Exxon letter to the Securities and
Exchange Commission, 2/7/06]
REX TILLERSON REPEATEDLY EXPRESSED DESIRE TO INVEST IN IRAN
Tillerson On Iran In 2016: “We’ll Wait And See If Things Open Up For U.S. Companies. We Would Certainly Take
A look” Into Iran Investments. In an interview on CNBC, Rex Tillerson said “U.S. companies like ours are still unable to
conduct business in Iran. A lot of our European competitors are in, working actively. I don’t know that-- that we’re necessarily
at a disadvantage. The history of Iranian-- in foreign investment in the past, their terms were always quite challenging, quite
difficult. We--never had large investments in Iran for that reason. And I don’t know that the Iranians are gonna be any
different today. We’ll have to wait and see and there hasn’t been any contracts put out. But I also learned a long time ago that
sometimes being the first in is not necessarily best. We’ll wait and see if things open up for U.S. companies. We would
certainly take a look because it’s a huge resource-owning country.” [CNBC, 3/3/16]
2015: Bloomberg Reported Exxon Hired A Lobbyist To Influence Iran Sanctions That Prevented U.S. Corporations
From Doing Business With Iran. According to Bloomberg, “Exxon, the world’s largest publicly traded crude producer by
market value, hired the lobbying firm founded by former Senator Don Nickles, an Oklahoma Republican, to monitor activity
related to Iranian sanctions, according to federal disclosure documents. This is the first time since 2010 that the Irving, Texasbased
oil company enlisted outside lobbyists to discuss Iran. Western energy companies are eager to tap Iranian fields that are
among the biggest and cheapest to exploit in the world, said Morningstar Inc.’s Allen Good. Iran nationalized oil production
in the 1970s. Sanctions imposed after the 1979 Islamic Revolution and later over the country’s nuclear ambitions have kept the
country largely off-limits to American firms. Iran is home to the world’s fourth-largest oil reserves and second-biggest cache of
natural gas.” [Bloomberg, 5/21/15]
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Exxon Denied It Was Lobbying On Sanctions, But Merely “Monitoring Activities Related To Iran.”
According to Bloomberg, “‘We are not lobbying on Iran sanctions,’ Alan Jeffers, an Exxon spokesman, said during a
telephone interview on Thursday. ‘We are monitoring activities related to Iran in the U.S. government.’ In a statement,
Nickles said his firm has represented Exxon for a decade, and would review their lobbying disclosure form to be sure
it accurately describes the work they’re doing related to Iran. ‘We are not influencing or advocating in any way on Iran
sanctions; our work with regard to Iran has involved only monitoring legislative activity in the U.S. Congress dealing
with that sanctions regime.’” [Bloomberg, 5/21/15]
2006: In Response To The SEC, Exxon Acknowledged Contact With Iran And Desire To Pursue Business In Iran If
Sanctions Were Reduced Or Lifted. According to a February 7, 2006 letter from Exxon to the Securities and Exchange
Commission, “We do have occasional contacts with persons in those countries. We strictly comply with all applicable
regulations regarding such contacts, and the contacts are made only after legal advice is rendered as to what is allowed under
current sanctions. For example, our employees attending a European petroleum conference may tell an Iranian attendee that
while we are unable to pursue certain business opportunities in Iran under present sanctions, we would be interested in talking
to them in the future if the sanctions were reduced or lifted.” [Exxon letter to the Securities and Exchange Commission,
2/7/06]
Despite American Foreign Policy Toward Iran And Iraq In The Early 2000’s, Tillerson Kept An Open Mind To
“Another Set Of Circumstances” That Might Come About In Those Countries In Coming Years. According to Private
Empire: ExxonMobil and American Power, “There was more concern within ExxonMobil about the corporation’s ability to keep
replacing its reserves than Raymond let on. The numbers the corporation was reporting to Wall Street at this time were not
impressive: At best, ExxonMobil seemed to be churning in place, finding only enough new oil each year to replace that which
it had pumped and sold. A former manager recalled a 2004 meeting at which the message was: ‘We can’t get enough new
assets to replace our reserves.’ As a result, geologists and scientists throughout the upstream division took a fresh 360-degree
review of reserve prospects worldwide. They revisited old assumptions. ‘They looked everywhere,’ the manager recalled. Iraq
offered a potential breakthrough in ExxonMobil’s access to equity reserves, but Raymond counseled patience. ExxonMobil
had owned oil in Iran and Iraq for decades during the twentieth century. It did not own oil in those countries in 2003, but
twenty years into the future, as Tillerson put it, ‘we’ll have another set of circumstances in some of those countries.’ One
attribute of a nation-state ExxonMobil lacked was an army or a navy of its own. China could ‘free ride’’ on the United States
Navy’s control of the open seas; Lee Raymond had no choice but to free ride on the Bush administration’s efforts to subdue
Iraq.” [Private Empire: ExxonMobil and American Power, pg. 247, 2012]
EXXON HAS LONG HISTORY OF OPERATIONS IN IRAN
Prior To The 1970s, Exxon Owned And Operated Large Oil And Gas Fields In Iran. According to Private Empire:
ExxonMobil and American Power, “Before the 1970s, Exxon, BP, and other large oil companies owned and operated large oil and
gas fields in Saudi Arabia, Iraq, Iran, Venezuela, and elsewhere. Rising anticolonialism and nationalism stoked a period of
upheaval that caused them to lose major properties.” [Private Empire: ExxonMobil and American Power, pg. 52, 2012]
Exxon Lobbyists Routinely Opposed Economic Sanctions Imposed On Iran And Argued For Free Trade. According
to Private Empire: ExxonMobil and American Power, “This understanding of risk shaped some of ExxonMobil’s lobbying on
foreign policy issues in Washington. The corporation promoted free-trade philosophies at every turn and opposed economic
sanctions against oil producers, except in the most egregious cases; until September 11, ExxonMobil lobbyists in Congress had
opposed oil sanctions imposed on Libya, Iran, and Syria. The corporation ‘s economic self-interest on the sanctions issue was
obvious, but the policy arguments mounted on PowerPoint slides by its in-house advocates were broad: The creation of a freeflowing
global oil pool, one shaped to the greatest possible degree by market incentives, would promote American national
security, ExxonMobil’s representatives insisted.” [Private Empire: ExxonMobil and American Power, pg. 246, 2012]
Exxon’s Predecessor First Invested In Iran In 1947 And Helped Run The Country’s Petroleum Industry For Two
Decades. According to Bloomberg, “A forerunner of Exxon, Standard Oil of New Jersey, first invested in Iran in 1947. In
1954 it became part of a group of eight foreign companies known as the Iranian Oil Participants that ran the day-to-day
operations of the country’s petroleum industry for the next two decades until the industry was nationalized.” [Bloomberg,
5/21/15]
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EXXON HAD BUSINESS WITH OTHER STATE SPONSORS OF TERRORISM,
INCLUDING SYRIA AND SUDAN
Exxon Purchased Oil from Syria’s State Owned Oil Company
Exxon Purchased Crude Oil From Government Controlled Syrian Petroleum Company. According to a letter from
Exxon to the Securities and Exchange Commission, “We note also your discussion of ExxonMobil Sales and Supply Corporation’s
purchases of Syrian crude from independent third parties on a spot basis between 2003 and 2005. Please advise us of the terms of your spot
purchases; the timing, to the best of your knowledge, of the exchange of funds and delivery of oil between the initial seller and your counterparty; the
annual dollar amounts paid by EMS&S from 2003 through 2005; and whether your counterparties acquired oil directly from the Syrian
government or entities controlled by the Syrian government. The key commercial terms of EMS&S’s spot purchases of Syrian crude from
independent third parties during 2003-2005 are shown on the attached spreadsheet together with the total dollar amounts of
such purchases for each year. These transactions were normal spot purchases of crude oil. During the time in question, and
continuing to the present, it was and is legal under the applicable U.S. laws and regulations for U.S. companies to purchase
Syrian crude oil, either indirectly through third parties or directly from the Syrian government or the government-controlled
Syrian Petroleum Company (‘Sytrol’).” [Exxon letter to the Securities and Exchange Commission, 7/14/06]
Exxon Had Contracts with Syrian State Oil and Airline Companies
Exxon Had A Contract With Syrian State Oil Company. According to a February 7, 2006 letter from Exxon to the
Securities and Exchange Commission, “Prior to the imposition of US sanctions in May 2004 against Syria, ExxonMobil Sales
and Supply Corporation, a Delaware corporation (‘EMS&S’), through its United Kingdom branch had a contract with
SYTROL, the Syrian state oil company, and during 2003, lifted thirteen cargos of Syrian crude, in total about 7,100,000 barrels
valued at about $191,000,000, pursuant to that contract. Prior to May 2004, the contract was mutually terminated, however,
prior to termination, EMS&S lifted two cargos of Syrian crude, about 1,200,000 barrels valued at about $35,000,000.” [Exxon
letter to the Securities and Exchange Commission, 2/7/06]
Exxon Had A Contract To Supply Fuel For Syrian State-Owned Airline. According to a February 7, 2006 letter from
Exxon to the Securities and Exchange Commission, “ExxonMobil Aviation International Ltd. a United Kingdom corporation
(‘EMA’), had a contract with Syrian Arab Airlines to supply jet fuel for its use at seven airports (Beirut, Bordeaux, Casablanca,
Ankara, Basle-Mulhouse, Milan Malpensa, and Vienna). EMA’s contract with Syrian Arab Airlines expired December 31, 2004
for all locations except at the Beirut Airport, which expired June 2005. The volumes sold pursuant to the contract were small
(a total of 626,000 gallons valued at about $910,000 in 2003; 1,085,000 gallons valued at about $1,800,000 in 2004 and 143,000
gallons valued at $101,000 in 2005). EMA repaid a deposit of $40,000 to the airline in September 2005.” [Exxon letter to the
Securities and Exchange Commission, 2/7/06]
Exxon Sold Millions to Syrian Customers INcluding State-Owned Airline
Exxon Sold $67.7 Million In Product To Customers In Syria Between 2003 And 2005. According to a February 7, 2006
letter from Exxon to the Securities and Exchange Commission, “Our Chemical segment has had no business transactions in
Sudan or Iran, but has had transactions in Syria. It has sold, from European sources with less than 10% U.S. content,
polyethylene and polypropylene (and small quantities of plasticizers and films) as follows:
Country 2003 2004 2005
(millions of dollars)
Syria $19.7 $23.7 $24.3
To our knowledge the Syrian customers are all private companies. There were no term contracts.” [Exxon letter to the
Securities and Exchange Commission, 2/7/06]
Exxon Sold Aviation Lubricants To Syrian State Airline And Owned 49% Stake In Syrian Company Operating A
Lubricant Oil Blending Plant In Syria Using Exxon Oil, Products, And Additives. According to a February 7, 2006
letter from Exxon to the Securities and Exchange Commission, “Prior to the imposition of sanctions against Syria in 2004,
ExxonMobil Middle East Marketing Corporation (‘EMMEM’), a Delaware corporation, sold aviation lubricants to Syrian Arab
Airlines at the Dubai airport in the United Arab Emirates. These sales totaled $24,480 in 2003 and $19,800 in 2004. Until June
30, 2005 when EMMEM sold its interest, it owned a minority (49%) interest in Al-Amir Luboil Industries and Marketing
Company (‘ALIMCO’), a Syrian limited liability company headquartered in Damascus. ALIMCO, at that time, was engaged in
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the manufacture, distribution and marketing of Mobil-branded finished lubricants in Syria. ALIMCO owned and operated a
lubricant oil blending plant in Syria as well as two warehouses. Prior to the sale of its minority interest, EMMEM supplied
ALIMCO with non-US sourced base oil, products, and additives.” [Exxon letter to the Securities and Exchange Commission,
2/7/06]
Exxon Subsidiary owned Sudanese Corporation
Exxon Subsidiary Owned Mobil Oil Sudan Ltd, Which Supplied Jet Fuel To Sudan State-Owned Airline, And
Operated Jet Fuel Terminals, and Mobil Gas Stations. According to a February 7, 2006 letter from Exxon to the
Securities and Exchange Commission, “Until March 13, 2003, Mobil International Petroleum Corporation (‘MINT’) (a
Delaware corporation) owned Mobil Oil Sudan Ltd. (‘MOS’) a Sudan corporation, which at the time marketed motor fuels, jet
and marine fuels, lubricants and other petroleum products. MOS had three fuels terminals and two joint venture airport
operations (50/50 with Shell Sudan); 52 Mobil branded service stations; fuel sales of approximately 1,600,000 barrels per year;
an approximate fuels market share of 11%; and approximately 80 employees.[…] Prior to the sale, MOS delivered fuel on an
ad hoc basis to Sudan Airways at Khartoum.” [Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon and Exxon Joint Venture Had Business in Iran, Syria, and Sudan
Exxon Joint Venture Had Business In Iran, Syria, And Sudan. According to a February 7, 2006 letter from Exxon to the
Securities and Exchange Commission, “In addition, we have a 50% interest in Infineum, a chemicals joint venture with Shell.
We each own a 50% interest in the joint venture through respective European subsidiaries. However, Infineum’s European
affiliates manage the business transactions in the Three Countries under a policy and procedure consistent with U.S. legal
requirements and no United States person is involved in those business transactions. Infineum’s European affiliates had sales
to entities in the Three Countries as follows:
Country 2003 2004 2005
(millions of dollars)
Iran $20.5 $16.6 $16.1
Sudan $0.3 $0.3 $0.0
Syria $0.3 $0.6 $0.2
[Exxon letter to the Securities and Exchange Commission, 2/7/06]
Exxon Invested In A Saudi Arabian Business That Sold Jet Fuel And Mobil Products To Iran Air And Sudan
Airways. According to a February 7, 2006 letter from Exxon to the Securities and Exchange Commission, “ExxonMobil
Middle East Supply Company Ltd. (‘EMMES’), a Bahamas corporation, owns a minority (49%) interest in the Arabian
Petroleum Supply Company (‘APSCO’), a Saudi Arabian joint stock company. We have limited information on APSCO
operations but what we have suggests that APSCO may sell finished or unfinished lubricants into Syria or through Syria to
other destinations. APSCO also has sold jet fuel (purchased from Saudi Aramco) to Iran Air. This business was solicited
directly by APSCO. In 2003, EMMEM, which sold lubricants to APSCO, learned that earlier in the year, APSCO had sold
Mobil-branded lubricants supplied by EMMEM to Iran Air (300 barrels) and Sudan Airways (28 barrels). While EMMEM’s
supply of lubricants to APSCO was lawful, EMMEM ceased further supply of lubricants to APSCO until it obtained APSCO’s
agreement that EMMEM supplied lubricants would not be resold to these customers or exported outside of Saudi Arabia.”
[Exxon letter to the Securities and Exchange Commission, 2/7/06]
EXXON ATTEMPTED TO DOWNPLAY BUSINESS CONNECTIONS TO STATE
SPONSORS OF TERRORISM DURING QUESTIONING FROM SECURITIES AND
EXCHANGE COMMISSION
2006: Securities And Exchange Commission Issued A Letter To Rex Tillerson Requesting Disclosure Of Reported
Exxon Operations With Designated State Sponsors Of Terrorism, Iran, Syria, And Sudan. According to a January 6,
2006 Securities and Exchange Commission letter to Rex Tillerson, “1. We note from public media sources that you may have
existing or anticipated operations associated with Iran, Syria and Sudan, which are identified as state sponsors of terrorism by
the U.S. State Department and subject to export controls imposed, in part, as a result of actions in support of terrorism
and/or pursuit of weapons of mass destruction and missile programs.” [Securities and Exchange Commission letter to Rex
Tillerson and Exxon, 1/6/06]
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Exxon Did Not Disclose Any Operations In Iran, Syria, And Sudan On Its Form 10K. According to a January
6, 2006 Securities and Exchange Commission letter to Rex Tillerson, “We note that your Form 10K does not contain
any disclosure about operations in these countries. With a view to disclosure, please address the materiality of your
contacts with these countries. Your response should describe your current, historical and anticipated operations in,
and contacts with, these countries, including through subsidiaries, affiliates, joint ventures and other direct and
indirect arrangements.” [Securities and Exchange Commission letter to Rex Tillerson and Exxon, 1/6/06]
Exxon Argued Its Interaction With Iran, Syria, And Sudan Were Limited And Claimed Disclosure Was Not “Legally
Necessary Or Appropriate.” According to a February 7, 2006 letter from Exxon to the Securities and Exchange
Commission, “In summary, we have had very limited interaction with Syria, Sudan, and Iran. When viewed in terms of the
scale of our business (revenues of $371,000,000,000; petroleum product sales of 3,000,000,000 barrels), we are confident that
these interactions are not material by any reasonable measure, that they certainly do not rise to the level where separate
disclosure would be either legally necessary or appropriate, and that they do not pose a material risk for our security holders.
Furthermore, we do not believe these de minimis activities would be qualitatively important to a reasonable investor.” [Exxon
letter to the Securities and Exchange Commission, 2/7/06]
2006, Exxon: “We Do Not Have Any Current Operations In Iran, Syria Or Sudan.” According to a February 7, 2006
letter from Exxon to the Securities and Exchange Commission, “We do not have any current operations in Iran, Syria or
Sudan (the ‘Three Countries’). We have no oil fields, refineries, offices or employees in the Three Countries.” [Exxon letter to
the Securities and Exchange Commission, 2/7/06]
Section Overivew
CAMPAIGN FINANCE
Tillerson supported Jeb Bush during the 2016 Republican primaries and did not contribute to Donald Trump.
Jeb Bush
Rex Tillerson Supported Jeb Bush During The Republican Primaries, Donating $2,700 To The Bush Campaign,
And Another $5,000 To The Right To Rise. According to the Wall Street Journal, “Mr. Tillerson supported a Trump rival
in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another
$5,000 to the Right to Rise, the super PAC that backed Mr. Bush.” [Wall Street Journal, 12/5/16]
TILLERSON DID NOT DONATE TO DONALD TRUMP
Tillerson Did Not Donate To Donald Trump’s Campaign. According to NBC News, “Tillerson has made tens of
thousands of dollars worth of political donations over the past two decades to Republican groups and candidates, including to
President George W. Bush and former Florida Gov. Jeb Bush, according to the Center for Responsive Politics, a nonpartisan
research group. The Wall Street Journal reported that Tillerson backed Jeb Bush during the GOP presidential primary and did
not donate to Trump's campaign.” [NBC News, 12/11/16]
Political Campaign Contributions
Beneficiary of Contributions Date Amount
Bill Shuster For Congress 9/29/2010 $1,000.00
NRCC (Party) 9/19/2016 $7,700.00
Ryan For Congress, Inc 9/19/2016 $2,700.00
Friends Of Roy Blunt 8/31/2016 $5,400.00
Friends Of Roy Blunt 8/31/2016 -$2,700.00
166

Beneficiary of Contributions Date Amount
NRSC (Party) 5/31/2016 $33,400.00
NRCC (Party) 3/29/2016 $5,000.00
Exxon Mobil Corporation Political 2/18/2016 $5,000.00
Action Committee (Exxonmobil PAC)
Pete Sessions For Congress 1/26/2016 $1,000.00
Republican National Committee (Party) 12/2/2015 $1,600.00
Republican National Committee (Party) 12/2/2015 $33,400.00
Jeb 2016, Inc 9/30/2015 $2,700.00
Lisa Murkowski For US Senate 8/25/2015 $2,700.00
Lisa Murkowski For US Senate 8/25/2015 $2,700.00
Upton For All Of US 8/25/2015 $2,700.00
Upton For All Of US 8/25/2015 $2,700.00
Republican Party Of Texas (Party) 3/16/2015 $500.00
National Republican Senatorial 10/27/2014 $2,000.00
Committee (Party)
Republican Party Of Kentucky(Party) 10/27/2014 $10,000.00
Cory Gardner For Senate 9/11/2014 $1,000.00
National Republican Senatorial 9/9/2014 $32,400.00
Committee (Party)
Texans For Senator John Cornyn Inc 8/27/2014 $2,600.00
Republican National Committee (Party) 5/28/2014 $32,400.00
Exxon Mobil Corporation Political 2/18/2014 $5,000.00
Action Committee (Exxonmobil PAC)
National Republican Senatorial 2/10/2014 $2,000.00
Committee (Party)
McConnell Senate Committee '14 1/14/2014 $1,900.00
Republican Party Of Texas 5/29/2013 $500.00
Exxon Mobil Corporation Political 3/25/2013 $5,000.00
Action Committee (Exxonmobil PAC)
Republican Party Of Texas 3/6/2013 $1,000.00
NRCC (Party) 2/28/2013 $2,500.00
Idaho Republican Party (Party) 9/14/2012 $4,675.00
Massachusetts Republican Party (Party) 9/14/2012 $4,675.00
Oklahoma Leadership Council (Party) 9/14/2012 $4,675.00
Vermont Republican Federal Elections 9/14/2012 $4,675.00
Committee (Party)
Republican National Committee (Party) 9/10/2012 $28,800.00
Romney For President Inc 9/10/2012 $2,500.00
Exxon Mobil Corporation Political 5/15/2012 $5,000.00
Action Committee (Exxonmobil PAC)
National Republican Congressional 3/26/2012 $10,000.00
Committee (Party)
Republican Party Of Texas 3/9/2012 $500.00
Dewhurst For Texas 3/1/2012 $1,000.00
Republican National Committee (Party) 1/13/2012 $2,000.00
Romney For President Inc 1/9/2012 $2,500.00
Republican National Committee (Party) 12/30/2011 $2,000.00
Exxon Mobil Corporation Political 12/19/2011 $5,000.00
Action Committee (Exxonmobil PAC)
The Congressman Joe Barton
11/10/2011 $2,500.00
Committee
McConnell Senate Committee '14 9/26/2011 $2,500.00
National Republican Senatorial 9/15/2011 $30,800.00
167

Beneficiary of Contributions Date Amount
Committee (Party)
Friends Of John Barrasso 3/28/2011 $2,500.00
Republican National Committee (Party) 3/24/2011 $1,500.00
Republican Party Of Texas 3/4/2011 $1,000.00
Lee Terry For Congress 9/30/2010 $1,000.00
Mary Bono Mack Committee 9/24/2010 $1,000.00
Carly For California Inc 9/3/2010 $2,400.00
National Republican Senatorial 8/19/2010 $30,000.00
Committee (Party)
Ryan For Congress 6/2/2010 $500.00
Friends Of Roy Blunt 5/18/2010 $2,400.00
Carly For California Inc 5/3/2010 $2,400.00
Exxon Mobil Corporation Political 4/13/2010 $5,000.00
Action Committee (Exxonmobil PAC)
The Congressman Joe Barton
4/6/2010 $1,000.00
Committee
National Republican Congressional 4/2/2010 $5,000.00
Committee (Party)
Republican Party Of Texas 3/23/2010 $500.00
Republican National Committee (Party) 3/22/2010 $1,500.00
Republican Party Of Texas 10/15/2009 $500.00
Lisa Murkowski For US Senate 9/30/2009 $1,000.00
Exxon Mobil Corporation Political 8/10/2009 $5,000.00
Action Committee (Exxonmobil PAC)
Republican National Committee (Party) 5/22/2009 $1,320.00
Republican Party Of Texas 3/31/2009 $500.00
National Republican Congressional 3/30/2009 $5,000.00
Committee (Party)
McConnell Senate Committee '14 9/30/2008 $2,300.00
Exxon Mobil Corporation Political 9/26/2008 $5,000.00
Action Committee (Exxonmobil PAC)
Michael Burgess For Congress 9/12/2008 $1,500.00
Congressman Joe Barton Committee, 9/2/2008 $1,500.00
The (TX/06)
Hall For Congress Committee (Ralph 8/26/2008 $1,000.00
Hall - Rockwall, Texas)
National Republican Senatorial 7/31/2008 $28,500.00
Committee (Party)
National Republican Congressional 3/13/2008 $2,000.00
Committee (Party)
Republican National Committee (Party) 2/25/2008 $1,200.00
People For Pete Domenici 10/1/2007 $1,500.00
Texans For Senator John Cornyn Inc 8/16/2007 $2,300.00
National Republican Congressional 6/18/2007 $1,000.00
Committee (Party)
Exxon Mobil Corporation Political 6/13/2007 $5,000.00
Action Committee (Exxonmobil PAC)
National Republican Congressional 6/7/2007 $5,000.00
Committee (Party)
National Republican Congressional 3/22/2007 $1,500.00
Committee (Party)
Republican Party Of Texas 2/26/2007 $500.00
Republican National Committee (Party) 1/16/2007 $1,100.00
168

Beneficiary of Contributions Date Amount
National Republican Congressional 11/2/2006 $5,000.00
Committee (Party)
Michael Burgess For Congress 10/17/2006 $500.00
National Republican Congressional 6/28/2006 $2,500.00
Committee (Party)
Exxonmobil Corporation Political 5/16/2006 $5,000.00
Action Committee (Exxonmobil PAC)
Kay Bailey Hutchison For Senate 3/29/2006 $2,100.00
Committee
Republican Party Of Texas 2/27/2006 $500.00
Republican National Committee (Party) 1/18/2006 $1,000.00
Exxonmobil Corporation Political 5/27/2005 $3,000.00
Action Committee (Exxonmobil PAC)
Republican National Committee (Party) 3/28/2005 $500.00
Republican Party Of Texas 2/16/2005 $500.00
Bush-Cheney '04 Compliance
6/8/2004 $2,000.00
Committee Inc
Exxonmobil Corporation Political 5/10/2004 $2,000.00
Action Committee (Exxonmobil PAC)
Republican Party Of Texas 4/29/2004 $500.00
National Republican Congressional 1/27/2004 $250.00
Committee (Party)
Republican National Committee (Party) 1/16/2004 $500.00
Republican National Committee (Party) 12/16/2003 $500.00
Republican Party Of Texas 12/16/2003 $500.00
Bush-Cheney '04 Inc 9/23/2003 $2,000.00
Republican National Committee (Party) 7/18/2003 $500.00
Republican National Committee (Party) 5/8/2003 $500.00
Republican National Committee (Party) 11/13/2002 $500.00
REPUBLICAN NATIONAL
10/11/2000 $200.00
COMMITTEE - RNC (Party)
REPUBLICAN NATIONAL
6/22/2000 $300.00
COMMITTEE - RNC (Party)
FIELDS FOR CONGRESS 7/10/1992 $250.00
Total Contributions: $487,035
[CQ Moneyline, “Tillerson, Rex” www.politicalmoneyline.com]
RELATIONSHIP WITH RUSSIA AND VLADIMIR PUTIN
Section Overview:
Tillerson maintained close a relationship with Vladimir Putin, Igor Sechin, and the Russian Government, even receiving
the “Russian Order of Friendship” in 2013.
Tillerson routinely met with Putin and Sechin, the head of Russia’s state-owned oil company Rosneft, even after Sechin
was hit with U.S. government sanctions. Along with Putin and Sechin, Tillerson orchestrated multiple billion dollar deals
to collaborate with the state-owned company on drilling operations in Russia and the United States. Joint operations in
Russia have benefited the Russian Government to the tune of tens of billions of dollars. In one instance, a $1 billion
investment by Exxon in Rosneft oil holdings in the Black Sea boosted Rosneft’s valuation by $7 billion.
169

Tillerson and Putin both vocalized aspirations that deals between Exxon and Rosneft would lead to closer cooperation
between the United States and Russia.
Tillerson has adamantly lobbied against any sanctions imposed on Russia, even after the invasion of Crimea. Tillerson
openly expressed his desire that Exxon get back to work in Russia as soon as sanctions are lifted, creating a potential
conflict of interest if he becomes Secretary of State.
Tillerson owes much of his corporate success at Exxon to his experience building relationships and business deals in
Russia.
From the early 1990s through 2016, Tillerson was involved in developing the “unprecedented scale of the Rosneft and
ExxonMobil partnership” throughout Russia and North America. Agreements reached by Tillerson included exploratory
deals in the Russian Arctic and Black Sea, and the first ever deal allowing a Russian state-owned oil corporation to
maintain a stake in U.S. assets.
Vladimir Putin
ROUTINELY MET WITH VLADIMIR PUTIN
September, 2005: Rex Tillerson Was Among Four American Oil Executives That Met With Vladimir Putin In
Washington. According to NEFT Trader, “‘Only negligible part of Russian energy reached the US economy. Under various
estimates, it is just a little over 2% of crude, only 0.3% of oil products and just the first sup-ply of [liquefied] gas. We have a
great potential,’ Putin said at the meeting with representatives of US oil majors in Washington. Putin met with ConocoPhillips
CEO Jim Mulva, Chevron CEO Dave O’Reilly, out-going ExxonMobil CEO Lee Raymond and incoming CEO Rex Tillerson.
Putin noted that relations between US and Russian companies were ‘gaining momentum,’ which was of benefit to the US
economy and energy consumers.” [NEFT Trader, 9/23/05]
Collaborated with Putin to Develop Oil and Natural Gas Partnerships Between Exxon and Russian
Government-Owned Entities
April, 2012: Rex Tillerson Met With Vladimir Putin To Discuss Energy Projects. According to ITAR-TASS, “Prime
Minister Vladimir Putin said he was convinced that cooperation between Russia’s state-owned oil company Rosenft and
ExxonMobil will be large-scale. ‘I hope and I am convinced that it will be a large-scale project, and I wish you success,’ Putin
said at a meeting with ExxonMobil President Rex Tillerson on Monday, April 16. He noted that big work has been done and a
number of documents have been prepared for signing since their previous meeting in the Russian Black Sea resort city of
Sochi in August 2011. ‘The Russian partners are beginning to worth together with you in the United States and North Canada.
Exxon can work in Russia’s north, south and other regions, including the continental shelf,’ the prime minister said.” [ITAR-
TASS, 4/16/12]
April, 2012: Rex Tillerson And Vladimir Putin Attended The Signing Of A Package Of Agreements That Allowed
Russian State-Run Oil Company Rosneft To Develop Projects In The U.S. And Canada. According to Kommersant
digest via AK&M News, “Yesterday, in Novo-Ogaryovo in the presence of Prime Minister Vladimir Putin presidency,
‘Rosneft’ and ExxonMobil Eduard Khudainatov and Rex Tillerson signed a package of agreements on the second part of the
transaction to create a strategic alliance. In August 2011, ‘Rosneft’ and ExxonMobil have agreed to jointly develop three areas
Vostochnoprinovozemelskih now the Russian state company will get in return projects in the US and Canada. ‘These
agreements are designed for decades,’ - said the prime minister. Rex Tillerson said that ‘negotiations are moving to a new
horizon.’ ‘We have become global partners’, - he said.” [Kommersant digest via AK&M News, 4/17/12]
In 2012, Tillerson And Putin Attended A Signing Ceremony Announcing An Exxon-Rosneft Agreement To “Tight
Oil Reserves In Western Siberia And Establish A Joint Arctic Research Center For Offshore Developments.”
According to Business Wire, “Rosneft and ExxonMobil today signed agreements to jointly develop tight oil reserves in
Western Siberia and establish a joint Arctic Research Center for Offshore Developments. The agreements, which support
implementation of the companies’ August 2011 long-term strategic cooperation agreement, were signed by Rosneft President
Igor Sechin and Stephen M. Greenlee, president of ExxonMobil Exploration Company. Vladimir Putin, President of the
170

Russian Federation, Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), and
other top managers of the companies were present at the signing ceremony. Rosneft and ExxonMobil agreed to expand and
expedite joint efforts to develop oil reserves in tight low-permeability formations in Western Siberia using advanced
technologies that ExxonMobil has successfully employed in North America.” [Business Wire, 6/15/12]
Rex Tillerson Attended A Signing Ceremony For The Rosneft Deal At Vladimir Putin’s Residence.
According to the Globe And Mail, “The two companies will also seek to transfer know-how from those projects to
develop Rosneft’s vast reserves of tight oil trapped in non-porous rocks like shale at three of its biggest fields in
western Siberia. ‘Today really is a historic day ... it marks the beginning of a new and broader relationship between our
companies,’ Exxon CEO Rex Tillerson told a signing ceremony hosted by Russian Prime Minister Vladimir Putin at
his Novo-Ogaryovo residence outside Moscow.” [Globe And Mail, 4/17/12]
September, 2012: Rex Tillerman And Vladimir Putin Attended The Signing Of A Contract For A Feasibility Study
On Russian Oil Drilling. “In assessing the design platform of paramount importance is the safety and protection of
Environment- Through this platform is expected to extend the season of drilling in the Arctic regione.Segodnya company
‘Rosneft’ and ‘ExxonMobil’ announced the selection of JSC ‘Plant of marine structures’ Oriental ‘as a contractor to assess the
concepts of design choice and determine the main technical parameters and specifications for the development of a feasibility
study on the drilling platform for the safe and efficient execution of exploration in shallow waters of the Kara morya. […]
Contract for the study was signed today by the Chairman of the Board and the President of JSC ‘NC’ Rosneft ‘Igor Sechin,
President of’ ExxonMobil Exploration Company ‘by Stephen M. Greenlee, and General Director of JSC’ Plant of marine
structures ‘East’ Alexei Kozhemyakovym in the presence of Russian President Vladimir Putin and Rex W. Tillerson, Chairman
and Chief executive of the Corporation "ExxonMobil"” [Russian Oil Refining Industry, 9/7/12]
June, 2012: Rex Tillerson Attended Vladimir Putin’s 2012 St. Petersburg International Economic Forum. According
to ITAR-TASS, “The St. Petersburg International Economic Forum will include a panel discussion titled ‘Nuclear Power: One
Year after Fukushima’ to be organised with support of the state atomic energy corporation Rosatom. The panel will take place
on Thursday, June 21, and will focus on new nuclear power plant safety requirements that have come into view over the year
after the Fukushima-Daiichi accident, projections for changes in the share of atomic energy in the world power production
and other issues, Rosatom said. […] Other participants include Alexei Ukyukaev, First Deputy Chairman of the Central Bank
of Russia; Sergei Kirienko, Rosatom Director General; Andrei Kostin, President of VTB Bank. International guests will
include Peter Voser, Chief Executive Officer of Royal Dutch Shell Plc.; Rex Tillerson, Chief Executive Office of ExxonMobil
Corporation and others.” [ITAR-TASS, 6/21/12]
Attended Business Forums Hosted by Putin
2008: Rex Tillerson Attended The St. Petersburg Economic Forum. According to Politico, “June 2008, ExxonMobil
CEO Rex Tillerson attended the St. Petersburg Economic Forum, Russia’s answer to Davos, its way of showing itself to the
world as the kind of economic powerhouse that can attract executives like Rex Tillerson to its banquets. It was a key and very
shaky moment for Russia. Vladimir Putin was bowing out after his second term as president of Russia—the most the Russian
constitution allows in a row, though he would figure out a way around it by 2012—and his successor, the relatively liberal
Dmitri Medvedev, was debuting at the Forum. Tensions were heating up with Russia’s southern neighbor, Georgia, and would
soon spill into war. The Russian economy was already getting shaky, and within a few months it would crater, faring the worst
out of all the G20 economies, sinking from 8 percent GDP growth, to negative 8 percent.” [Politico, 12/10/16]
2013: Rex Tillerson Was Part Of A Select Crowd Present For A Small Address By Vladimir Putin At The St.
Petersburg International Economic Forum. According to Platts Oilgram News, “‘Offshore resources and hard-to-extract
resources...require cooperation between producers, new technology and can involve asset swaps,’ Russia’s President Vladimir
Putin said in a short speech on Friday at the St. Petersburg International Economic Forum. Putin was speaking in a small
room on the fringes of the forum by far Russia’s biggest economic event, billed to rival the World Economic Forum in
Davosin front of an impressive line-up of guests. It was a select crowd that included a raft of oil major CEOs among those
Platts spotted from the back of the room were BP’s Bob Dudley, ExxonMobil’s Rex Tillerson, Lukoil’s Vagit Alekperov,
Gazprom’s Alexei Miller, Eni’s Paolo Scaroni, Novatek’s Leonid Mikhelson, CNPC’s Zhou Jiping and of course Rosneft’s
Igor Sechin.” [Platts Oilgram News, 6/25/13]
171

In June 2014, Rex Tillerson Attended The World Petroleum Congress In Moscow. According to the Washington Times,
“Mr. Tillerson, at a meeting of the World Petroleum Congress in Moscow in June, underscored his commitment to doing
business in Russia, Bloomberg News reported. His close ties to Mr. Putin reflect the importance oil firms place on cultivating
the world leader, who exerts personal control over major drilling projects and awards top executive slots to friends and allies at
Rosneft, Gazprom and other state-directed enterprises.” [Washington Times, 8/12/14]
2016: Igor Sechin Invited Rex Tillerson To The St. Petersburg International Economic Forum. According to IT
Manager, “President of ‘Rosneft’ Igor Sechin managed to gather at the forum impact the composition of the top managers of
Western oil companies: with him in public, agreed to serve as head of the British BP, the Italian Eni, French Total and US
ExxonMobil. And he spoke before a discussion with a great keynote speech about the fate of the oil market. Observers note: it
was tracing the behavior of Vladimir Putin: at a table with figures in rank to slander the world's theses on how to live. […]
Chairman of the Board of the American ExxonMobile Rex Tillerson and did let himself anti-American joke. ‘And then there is
someone in the room from the US government? I'd handed him a word, that he commented on the sanctions! ‘And Sechin
again smiled.” [IT Manager, 6/16/16]
Rex Tillerson Attended Putin’s St. Petersburg International Economic Forum in June 2016. According to Platts
Oilgram News, “Speaking to the St Petersburg International Economic Forum, President Vladimir Putin criticized attempts to
monopolize’ technology and set up restricted economic unions that prevent exchange of technologies and scientific
innovations. […] Top officials of many international oil majors took part in the forum, including Total CEO Patrick Payanne,
ExxonMobil CEO Rex Tillerson, and Eni's CEO Claudio Descalzi, who traditionally gather in St Petersburg to discuss
hydrocarbons markets and cooperation with Russia.” [Platts Oilgram News, 6/21/16]
June 2016: Rex Tillerson Met With Vladimir Putin. According to Russian Oil Refining Industry, “Vladimir Putin met in
Saint Petersburg with the heads of major foreign companies. Despite the delay, businessmen Vladimir Putin met ponravilas
Pyatnichny evening at the St. Petersburg forum was dedicated to foreign investors. […] When the press conference with Putin
and Renzi came to an end, the queue at the entrance to the next head of the audience lined ExxonMobil Rex Tillerson, CEO
of BP, Robert Dudley, the head of Total, Patrick Puyang, project manager Dirk Hyperloop Alborn and others.” [Russian Oil
Refining Industry, 6/20/16]
CRITICISM OF TILLERSON’S CLOSE RELATIONSHIP WITH PUTIN
Wall Street Journal: Few U.S. Citizens Are Closer To Vladimir Putin Than Rex Tillerson, Who Has Known The
Leader Since “He Represented Exxon’s Interests In Russia During The Regime Of Boris Yeltsin.” According to the
Wall Street Journal, “Friends and associates said few U.S. citizens are closer to Mr. Putin than Mr. Tillerson, who has known
Mr. Putin since he represented Exxon’s interests in Russia during the regime of Boris Yeltsin.” [Wall Street Journal, 12/6/16]
Former Deputy Defense Secretary And President Of The Center For Strategic And International Studies John
Hamre: Tillerson “Has Had More Interactive Time With Vladimir Putin Than Probably Any Other American With
The Exception Of Henry Kissinger.” According to the Wall Street Journal, “‘He has had more interactive time with
Vladimir Putin than probably any other American with the exception of Henry Kissinger,’ said John Hamre, a former deputy
defense secretary during the Clinton administration and president of the Center for Strategic and International Studies, a
Washington think tank where Mr. Tillerson is a board member.” [Wall Street Journal, 12/6/16]
Politico: “Tillerson Was At The Head Of That Line” Bowing Down To Putin While He “Shocked The World By
Violating International Law” And Invading Ukraine. According to Politico, “It was a strange twist: Russia had become an
international pariah, and its economy—to say nothing of its rule of law or judiciary—was in shambles, but Western companies
were bowing and scraping before a man who had just shocked the world by violating international law. Tillerson was at the
head of that line. Instead of using their deep ties to Russia—by this point, it is said Tillerson had become buddies with
Sechin—to push the Kremlin on the ‘rule of law’ that had so bothered Tillerson six years prior, Russia’s new friends pushed
on the White House. Shortly before sending his emissary to St. Petersburg to sign the deal, Tillerson told reporters in Texas
that he was lobbying Washington against sanctions.” [Politico, 12/10/16]
Politico: “It’s Hard To Imagine Tillerson Publicly Chiding Putin Today Because He Is Now So Very Dependent
On That Friendship.” According to Politico, “It’s hard to imagine Tillerson publicly chiding Putin today because he is now
so very dependent on that friendship.” [Politico, 12/10/16]
172

Politico: Tillerson Learned That “To Do Business In Russia, You Have To Be On Good, Personal Terms With
[Vladimir] Putin And [Igor] Sechin.” According to Politico, “The lesson of Putin’s 16-year tenure is a lesson that all
businesspeople, foreign and domestic, have learned: To do business in Russia, you have to be on good, personal terms with
Putin and Sechin. And you have to understand that those two gatekeepers to Russia’s riches are fickle and sadistic, and, as
former KGB operatives, know little of real friendship. To do business in Russia—both for Exxon Mobil and for Tillerson’s
own massive retirement fund, whose fortunes would rise significantly if a Trump White House lifted sanctions—you have to
dance to Putin’s tune, and take whatever favors and humiliations he sends your way.” [Politico, 12/10/16]
Politico: To Do Business In Russia, Tillerson Had To “Dance To Putin’s Tune, And Take Whatever Favors And
Humiliations” He Sent His Way. According to Politico, “To do business in Russia—both for Exxon Mobil and for
Tillerson’s own massive retirement fund, whose fortunes would rise significantly if a Trump White House lifted sanctions—
you have to dance to Putin’s tune, and take whatever favors and humiliations he sends your way. Putin may act a friend and
pin state medals on your breast, but he is, ultimately, a cynic. And to play ball with him, you have to be a cynic, too. Forget
your honor, your rule of law, your independent judiciary, your human rights, your international law, and focus on the gold
coins he throws to your feet. And forget looking dignified as you gather them up.” [Politico, 12/10/16]
Washington Times: “Exxon CEO Rex Tillerson Has Cultivated Close Ties With The Russian Leader [Putin] In
What Forbes Magazine Has Dubbed A Russian ‘Bromance.’” According to the Washington Times, “But Exxon, the
American oil firm with the biggest stakes in Russia, may be even closer to Mr. Putin's heart. Exxon CEO Rex Tillerson has
cultivated close ties with the Russian leader in what Forbes magazine has dubbed a Russian ‘bromance.’ On Monday, Mr.
Putin hailed Exxon as his ‘old and reliable partner’ as he gave his assent for Exxon in partnership with Rosneft to begin
drilling Russia's northernmost oil well in the Arctic Ocean. ‘Despite current political difficulties, pragmatism and common
sense prevail,’ Mr. Putin said in a video from the Black Sea resort of Sochi. ‘Nowadays, commercial success is defined by an
efficient international cooperation. Businesses, including the largest domestic and foreign companies, understand this
perfectly.’” [Washington Times, 8/12/14]
Columbia University’s Jason Bordoff: “Few Corporate Titans Are Closer To Putin Than Tillerson.” According to the
Chicago Tribune, “Tillerson's close relationship with Putin could also become a flashpoint during confirmation hearings,
especially in light of a recent CIA assessment that Russia intervened in the 2016 election to help Trump win the presidency,
rather than just undermine the U.S. electoral system. "Few corporate titans are closer to Putin than Tillerson," said Jason
Bordoff, founder of Columbia Univer-sity's Center on Global Energy Policy. During the 1990s, Tillerson oversaw an Exxon
project on Russia's Sakhalin island and developed a work-ing relationship with Putin.” [Chicago Tribune, 12/11/16]
TILLERSON ON HIS RELATIONSHIP WITH PUTIN
2016: Rex Tillerson On His Relationship With Vladimir Putin: “I've Known Him Since 1999 And I Have A Very
Close Relationship With Him.” According to U Texas BBA, TILLERSON: "So my relationship with Vladimir Putin,
which dates back almost 15 years now-- I've known him since 1999 and I have a very close relationship with him. I don't
agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I'm a
businessman and I've invested a lot of money. Our company has invested a lot of money in Russia very successfully, our
Russian workforce is 98 1/2% Russian national. They're magnificent employees. I mean I just admire them greatly in terms
of what they're able to do and he knows that us being there has caused good things to happen for them. That we've been a
positive force.” [Rex Tillerson at U Texas BBA, 2/18/16]
2016: Rex Tillerson On His Relationship With Vladimir Putin: “He Understands That I'm A Businessman And I've
Invested A Lot Of Money.” According to U Texas BBA, TILLERSON: "So my relationship with Vladimir Putin, which
dates back almost 15 years now-- I've known him since 1999 and I have a very close relationship with him. I don't agree with
everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I'm a businessman and
I've invested a lot of money. Our company has invested a lot of money in Russia very successfully, our Russian workforce is
98 1/2% Russian national. They're magnificent employees. I mean I just admire them greatly in terms of what they're able to
do and he knows that us being there has caused good things to happen for them. That we've been a positive force.” [Rex
Tillerson at U Texas BBA, 2/18/16]
173

2016: Rex Tillerson On Exxon’s Relationship With Putin And Russia: “He Knows That Us Being There Has Caused
Good Things To Happen For Them. That We've Been A Positive Force.” According to U Texas BBA, TILLERSON:
"So my relationship with Vladimir Putin, which dates back almost 15 years now-- I've known him since 1999 and I have a very
close relationship with him. I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing.
But he understands that I'm a businessman and I've invested a lot of money. Our company has invested a lot of money in
Russia very successfully, our Russian workforce is 98 1/2% Russian national. They're magnificent employees. I mean I just
admire them greatly in terms of what they're able to do and he knows that us being there has caused good things to happen for
them. That we've been a positive force.” [Rex Tillerson at U Texas BBA, 2/18/16]
Rex Tillerson To Vladimir Putin: “Nothing Strengthens Relationships Between Countries Better Than Business
Enterprise.” According to a transcript released by the Russian presidential website and translated by BBC Monitoring Former
Soviet Union, Rex Tillerson said, “Thank you, Mr President, for those warm remarks and your welcome. I also appreciate very
much your attending today the signing of our two agreements. As you point out, these two agreements represent continued
progress in our very broad strategic partner-ship between Rosneft and ExxonMobil. It is important progress and substantive
progress, and I’m pleased that you were here to be part of the signing today, and very much appreciate the strong support and
encouragement you have provided to our partnership. I agree, as you point out, that nothing strengthens relationships between
countries better than business enterprise. And these agreements will serve to strengthen our relationship between our two
countries and obviously our two companies.” [Russian presidential website via BBC Monitoring Former Soviet Union,
6/18/12]
AWARDED RUSSIAN ORDER OF FRIENDSHIP BY VLADIMIR PUTIN
2013: Rex Tillerson Was Awarded The Russian Order Of Friendship By Vladimir Putin. According to RIA Novosti,
“Russian President Vladimir Putin on Friday awarded the managers and employees of a number of the leading energy
companies in the world. Awards handed power industry Head of State during his meeting with them in the framework of St.
Petersburg International Economic Forum. In accordance with the decree of the president, for his significant contribution to
strengthening international cooperation in the oil and gas fields of the Order of Friendship awarded by the authorized
manager of Eni, Paolo Scaroni and Chairman of the Board of Directors, General Director of "Exxon Mobil" Rex Tillerson.
Also, a number of employees of energy companies thanked the Russian president.” [RIA Novosti, 6/21/13]
CNN: “In 2013, Vladimir Putin Awarded ExxonMobil CEO Rex Tillerson The Order Of Friendship, One Of
The Highest Honors Russia Gives To Foreign Citizens,” For His Relationship With Russia And “Great
Contribution” To “Large-Scale Economic Projects.” According to CNN, “In 2013, Vladimir Putin awarded
ExxonMobil CEO Rex Tillerson the Order of Friendship, one of the highest honors Russia gives to foreign citizens.
The silver badge underscores the close ties that have existed for many years between Russia and Tillerson, the leading
candidate to be President-elect Donald Trump's secretary of state. […] Putin later awarded Tillerson the Order of
Friendship, which is given to foreign citizens for ‘special merits in strengthening peace, friendship, cooperation and
mutual understanding between peoples.’ It is also awarded for those who make a ‘great contribution’ to ‘large-scale
economic projects’ in Russia.” [CNN, 12/11/16]
2013: Rex Tillerson Was Awarded The Russian Order Of Friendship By Vladimir Putin. According to ITAR-TASS, “-
Russian President Vladimir Putin on Friday awarded the chief executive officers of ENI and Exxon Mobil, Paolo Scaroni and
Rex Tillerson, with the Orders of Friendship to commend their contribution to strengthening cooperation in the fuel and
energy sector. Putin also expressed gratitude to representatives of the ENI and Exxon Mobil companies.” [ITAR-TASS,
6/21/13]
Tillerson Earned The Russian Order Of Friendship After Signing Deals With Rosneft Chief, Igor Sechin, A Putin
Loyalist. According to the Washington Post, “Tillerson won the award after signing deals with the state-owned Russian oil
company Rosneft, whose chief, Igor Sechin, is seen as Putin’s loyal lieutenant. The partnership had begun a drilling program in
the Arctic’s Kara Sea, where Exxon made a find, and had agreed to explore shale oil areas of West Siberia and the deep waters
of the Black Sea.” [Washington Post, 12/13/16]
Igor Sechin
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SECHIN WAS HEAD OF RUSSIAN STATE OIL COMPANY ROSNEFT AND
FORMER AIDE TO PUTIN
Igor Sechin Served Putin Since 1991. According to The Economist, “After Mr Putin became deputy mayor in 1991, Mr
Sechin ran his office, keeping a diary where he meticulously recorded the contact details of visitors. ‘Igor is like that, he loves
military discipline and subordination,’ says Mr Konyushkov. When Mr Putin moved to Moscow, Mr Sechin trailed behind him
at the airport, carrying a duffel bag. ‘He treated Putin as a god before Putin was a god,’ says Konstantin Simonov, head of the
National Energy Security Fund, a consultancy in Moscow. Mr Sechin served as deputy head of Mr Putin’s presidential
administration. ‘To see Putin, you had to go through Sechin,’ says a former senior official. In 2004 Mr Putin appointed him
head of Rosneft’s board.” [Economist, 12/15/16]
Igor Sechin Became CEO Of Rosneft In 2012 After Serving Putin In The Office Of The President And Prime
Minister From 2000 To 2012. According to Rosneft, “Igor Sechin […] Deputy Head of the Executive Office of the
President of the Russian Federation from 2000 until 2004. Deputy Head of the Executive Office of the President of the
Russian Federation, Aide to the President of the Russian Federation from 2004 until 2008. Deputy Prime Minister of the
Russian Federation from 2008 until 2012. Since May 2012 – Chief Executive Officer of Rosneft, Chairman of Rosneft’s
Management Board.” [Rosneft, accessed 1/4/17]
TILLERSON WORKED WITH SECHIN TO REACH BUSINESS DEALS BETWEEN
EXXON AND ROSNEFT
2013: Rex Tillerson Met With Igor Sechin In Washington To Discuss Issues Of Cooperation Between ExxonMobil
And Rosneft. According to ITAR-TASS, “Issues of cooperation between the Rosneft and Exxon Mobil companies will be
discussed here on Tuesday by the heads of the two corporations, Igor Sechin and Rex Tillerson, the press service of the
Russian company told Itar-Tass on Monday. It specified that ‘several meetings will be held and a number of documents will be
signed with the strategic partner - Exxon Mobil during the working visit of the Rosneft president.’ It is planned that taking
part in the negotiations that will be held in the Washington office of the American oil giant, will also be the heads of some of
its units. The press service of Exxon Mobil declined to comment to Itar-Tass on the upcoming meeting.” [ITAR-TASS,
6/11/13]
Rex Tillerson Gifted Russian Oil Minister Igor Sechin A Cowboy Hat During Meetings On ExxonMobil’s Business
In Russia. According to the London Standard, “Rex Tillerson, the Texan boss of Exxon, gave Russia's all-powerful oil
minister, Igor Sechin, a cowboy hat during the pair's talks over how they could work together to exploit the country's vast oil
riches. The garrulous - if slightly terrifying - Sechin, now running the country's vast Rosneft empire, loves ex-changing such
tokens. The hat went on display in his office. But that was in happier times, before the Ukraine crisis and subsequent sanctions
on Russia, Sechin and his compadres in the Kremlin. Last year, the well which the two men agreed to develop struck a
potential billion barrels of oil under Siberia. But instead those US sanctions forced Tillerson to order his people to pack up
and come home.” [London Standard, 7/3/15]
2011 Deal to Develop Oil Operations in Black Sea
2011: Rex Tillerson Attended A Ceremony With Igor Sechin, Putin Ally And Head Of State-Run Oil Company
Rosneft, Formalizing A Deal Between ExxonMobil And Rosneft To Develop Oil Resources In The Black Sea
Region. According to AK & M Online News, “Yesterday, within the framework of the economic forum in Davos (learn
more about it, see. Material on p. 2), the head of "Rosneft" Eduard Khudainatov signed with the head of ExxonMobil
Development Company Neil Duffin cooperation agreement project on the Black Sea shelf. The ceremony was attended by
Deputy Prime Minister Igor Sechin and the head of ExxonMobil, Rex Tillerson. "The investment climate improves, we even
managed to convince ExxonMobil", - said Igor Sechin. "Rosneft" stressed that its new strategic partner, the British BP, was
informed of the transaction in advance. "Rosneft" and ExxonMobil will work together to develop the Tuapse Trough land
area of 11.2 thousand. Km. According to Rex Tillerson, the site resources are estimated at 1 billion of oil equivalent.” [AK &
M Online News, 1/28/11]
2011: Chairman Of Rosneft’s Board And Russia’s Deputy Prime Minister, Igor Sechin, On Rosneft-ExxonMobil
Black Sea Deal: “Exxonmobil Technologies Will Effectively Complement Rosneft’s Experience And Resources.”
According to Platts Oilgram News, “The ExxonMobil deal, which was signed by Rosneft President Eduard Khudainatov and
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ExxonMobil Development Company President Neil Duffin during the World Economic Forum in Davos, Switzerland, goes
beyond just exploration in the Black Sea. […] ‘ExxonMobil technologies will effectively complement Rosneft’s experience and
resources,’ Igor Sechin, the chairman of Rosneft’s board and Russia’s deputy prime minister, said after the signing ceremony in
Davos. ‘Development of this area will become the springboard for full-scale Black Sea Basin development, and this challenge
will require coordinated efforts of many nations and companies in the region,’ Sechin said.” [Platts Oilgram News, 1/28/11]
2012 Deal to Develop Oil Operations in Kara Sea
Rex Tillerson Joined Russian Deputy Prime Minister Igor Sechin And Rosneft President Eduard Khudainatov To
Give An Update To Investment Analysts On ExxonMobil And Rosneft’s Arctic Circle Drilling Deal. According to
Moscow News, “Rosneft and Exxon will provide an update on their strategic deal in a presentation to investment analysts in
New York on Wednesday. The speakers will include Exxon CEO Rex Tillerson, Rosneft president Eduard Khudainatov and
Deputy Prime Minister Igor Sechin, who is Prime Minister and President-elect Vladimir Putin’s right-hand man in charge of
the energy sector.” [Moscow News, 4/16/12]
Rex Tillerson And Igor Sechin Attended A Signing Ceremony For A Declaration On Environmental Protection
During Exploration And Development Of Resources In The Russian Arctic Shelf. According to ITAR-TASS, “Rosneft
and ExxonMobil have signed a declaration on the environmental and biological diversity protection in the process of
exploration and development of the hydrocarbons in the Russian zone of the Arctic continental shelf, the Russian company
said in a relevant document on Friday. The declaration was signed in Irving (U.S. State of Texas) during a meeting between
Rosneft President Igor Sechin and ExxonMobil Chief Executive Officer Rex W. Tillerson earlier on the day. The document
envisages a set of steps aimed at the protection of the Arctic ecological system in the process of hydrocarbons exploration and
production by Rosneft and its partners. While commenting on the declaration, Sechin stated, ‘Rosneft and ExxonMobil have
maintained successful cooperation within many years. I’m grateful to Mr. Tillerson for the support of this initiative.’ Tillerson,
in turn, stated that his company does its best to reduce possible pressure on the environment in all regions of its activity
through the permanent improvement of technologies and working procedures. According to Tillerson, his company supports
Rosneft’s initiative and will develop interaction with its representatives and other companies engaged in the sphere in order to
guarantee the environmental protection in Russia’s Arctic zone.” [ITAR-TASS, 12/7/12]
2013 Strategic Cooperation Agreement signed with Sechin
In 2013, Tillerson And Sechin Announced The Signing Of A Strategic Cooperation Agreement To Advance Exxon
And Rosneft Cooperation In The “Arctic Shelf And Deep Water Areas Of The Black Sea,” “Oil In West Siberia,”
And “A Promising LNG Project In The Russian Far East.” According to Business Wire, “Agreements were signed today
at the St. Petersburg International Economic Forum by Igor I. Sechin, Rosneft president and chairman of the Management
Board, and Rex W. Tillerson, chairman and CEO of Exxon Mobil Corporation. Commenting on the agreements signed, Igor
Sechin said, ‘I am glad to note the activities outlined in the Strategic Cooperation Agreement are being implemented ahead of
schedule. I would like to thank the teams from both companies for their hard and coordinated work. Our cooperation touches
upon the most promising aspects of today’s oil and gas industry: Arctic shelf and deep water areas in the Black Sea covering a
total area of 773,000 square kilometers, tight oil in West Siberia as well as a promising LNG project in the Russian Far East.
We are convinced that implementation of all these projects will benefit both companies’ shareholders. We believe it will also
boost the development of the Russian oil and gas industry and will have a multiplying effect on related industries, already
creating market demand for equipment, knowledge and technologies.’ ‘ExxonMobil is making a significant investment in
Russia, and these agreements serve as the foundation for our projects and future work together,’ Tillerson said. ‘Experience
tells us that a good foundation is critical for success in the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with
Rosneft is an example where we have put this experience to work.’” [Business Wire, 6/21/13]
2014, Signed a Deal and Met with Sechin Weeks after U.S. Government Sanctions Against Sechin
2014: Exxon Signed An Agreement With Igor I. Sechin, Head Of Russian State Oil Company Rosneft, Weeks After
The U.S. Imposed Sanctions On Sechin. According to the New York Times, “Like many chief executives of American
companies, Rex W. Tillerson of Exxon Mobil didn't attend the major business forum in Russia last month, at the urging of
White House officials. But the company's exploration chief, Neil W. Duffin, did. In a ceremony at the event, Mr. Duffin
signed an agreement with Igor I. Sechin, the head of the state-owned Rosneft, to expand its joint ventures to drill offshore in
the Arctic Ocean, to explore for shale oil in Siberia and to cooperate on a liquefied natural gas plant in Vladivostok. The deal
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came just weeks after the United States government imposed sanctions on the personal dealings -- though not the corporate
activities -- of Mr. Sechin, a former military intelligence agent and longtime aide to President Vladimir V. Putin.” [New York
Times, 6/10/14]
Rex Tillerson Met With Igor Sechin In June 2014 In Moscow. According to Australian Financial Review, “US energy
giant ExxonMobil has come under scrutiny from the Obama administration and Congress over its ties to Rosneft. In June,
Exxon chief executive Rex Tillerson met Rosneft chief Igor Sechin in Moscow. Sechin has close links to Putin.” [Australian
Financial Review, 7/31/14]
Igor Sechin Boasted That It Was “Business As Usual” With Exxon Just Days After The U.S. Government Imposed
Sanctions On Him. According to the Washington Times, “‘All major projects this year are related to our joint work with
Exxon,’ Rosneft's top executive, Igor Sechin, told the congress in Moscow. Mr. Sechin, a close ally of Mr. Putin, said Rosneft's
operations with Exxon were unaffected by the sanctions and it was ‘business as usual,’ only days after the U.S. banned him
from traveling to the U.S. as punishment for Russia's takeover of the Crimean Peninsula from Ukraine.” [Washington Times,
8/12/14]
2016 St. Petersburg International Economic Forum
2016: Igor Sechin Invited Rex Tillerson To The St. Petersburg International Economic Forum. According to IT
Manager, “President of ‘Rosneft’ Igor Sechin managed to gather at the forum impact the composition of the top managers of
Western oil companies: with him in public, agreed to serve as head of the British BP, the Italian Eni, French Total and US
ExxonMobil. And he spoke before a discussion with a great keynote speech about the fate of the oil market. Observers note: it
was tracing the behavior of Vladimir Putin: at a table with figures in rank to slander the world's theses on how to live. […]
Chairman of the Board of the American ExxonMobile Rex Tillerson and did let himself anti-American joke. "And then there
is someone in the room from the US government? I'd handed him a word, that he commented on the sanctions! "And Sechin
again smiled.” [IT Manager, 6/16/16]
Russian Government
TILLERSON MAINTAINED A CLOSE RELATIONSHIP WITH THE RUSSIAN
GOVERNMENT, OFTEN AT ODDS WITH U.S. GOVERNMENT POSITIONS
Private Empire: Exxon Preferred To Operate On Its Own When It Came To Negotiating With Russia. According to
Private Empire: ExxonMobil and American Power, “ExxonMobil ran an office in Moscow, headed by a former Australian diplomat,
Glenn Waller. Rosemarie Forsythe, the former Clinton administration National Security Council analyst, also advised
Raymond during ExxonMobil’s talks in Russia after 2001. The corporation, as ever, believed it was better off handling things
in Moscow on its own. ‘Exxon operates independently,’ recalled Leonard Coburn, who worked at the Department of Energy
on the Bush administration’s Russian oil initiative. ‘They think they can do better than the [U.S.] government and often they
do.’’ Occasionally, Lee Raymond might turn to Vice President Cheney or another very senior official to give the Russians ‘a
good kick in the pants,’ as Co­ burn put it, about a specific tax or policy stalemate in Moscow. Otherwise, the corporation
negotiated in private.” [Private Empire: ExxonMobil and American Power, pg. 255, 2012]
Rex Tillerson Managed Exxon’s Russia Account And Formed An Agreement With Russian-Owned Rosneft To
Keep Exxon And The Russian Government “On The Same Side Of The Table” If Issues Arose. According to Private
Empire: ExxonMobil and American Power, “Rex Tillerson had followed Koonce as the lead ExxonMobil executive on Russia. He
managed the Russia account from a base in Texas, flying over as necessary. Tillerson formed a friendship with the Sakhalin
governor and decided to rope in a state-owned Russian oil firm as a project partner, so that ExxonMobil and the Russian
government would be ‘on the same side of the table,’ as Tillerson put it later, if disputes over the project arose. ExxonMobil
had connections at Rosneft, one of the smaller state-owned oil and gas companies, with about 10 percent of the country’s
reserves, a company widely regarded as a bureaucratic mess even by Russia’s standards.” [Private Empire: ExxonMobil and
American Power, pg. 256, 2012]
In 2006, When Putin Demaned To Renegotiate An Exxon Contract In Russia, Tillerson Rejected The Bush
Administration’s Help, Believing Exxon Would Be Better Suited To Handle Putin On Its Own. According to Private
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Empire: ExxonMobil and American Power, “When Vladimir Putin during 2006 demanded to renegotiate one of ExxonMobil’s
remaining contracts in Russia, President George W. Bush telephoned Rex Tillerson to discuss the affront, according to
reports of the call that circulated among the corporation ‘s managers. The Bush administration was by now thoroughly
disabused of its romanticism about oil capitalism under Putin; its optimism had ended when Putin arrested Mikhail
Khodorkovsky, the president of Yukos, with whom Lee Raymond had negotiated unsuccessfully during 2003. Three
years later, Khodorkovsky remained in prison; he made impassioned speeches about democracy while appearing
periodically in Russian courtrooms, confined to a cage, and he was emerging as an unlikely symbol of credible dissent.
Bush said that his administration stood ready to dive into oil diplomacy to push back against Putin’s attempts at
renegotiation. Tillerson thanked the president, but afterward, through its Washington office, the company begged the
Bush administration to stay away. The message ExxonMobil’s K Street staff sent to the White House was, in essence,
Putin is one of the less offensive heads of state we deal with; we’ll do much better on our own.” [Private Empire:
ExxonMobil and American Power, pg. 418, 2012]
CNN: Trump Praised Tillerson As “Much More Than A Business Executive” And A “World-Class Player” Citing
The Fact That Tillerson “Knows Many Of The Players’ And Does “Massive Deals In Russia’ For Exxon.” According
to CNN, “Trump praised Tillerson on Fox News Sunday as ‘much more than a business executive’ and a ‘world-class player.’
Trump cited the fact that Tillerson ‘knows many of the players’ and does ‘massive deals in Russia’ for Exxon.” [CNN,
12/11/16]
Rex Tillerson Was A Member Of The U.S.-Russia Business Council. According to the Dallas Morning News, “Position:
President and director of Exxon Mobil since March 2004; previously a senior vice president since August 2001. Joined Exxon
as a production engineer in 1975. Age: 53 Education: Bachelor's degree in civil engineering, University of Texas at Austin.
Business and civic groups: Board memberships include the U.S.-Russia Business Council, American Petroleum Institute,
Center for Strategic and International Studies, Society of Petroleum Engineers and Boy Scouts of America.” [Dallas Morning
News, 8/5/05]
Rex Tillerson Was A Member Of The U.S.-Russia Business Council. According to the Dallas Morning News, “Position:
President and director of Exxon Mobil since March 2004; previously a senior vice president since August 2001. Joined Exxon
as a production engineer in 1975. Age: 53 Education: Bachelor's degree in civil engineering, University of Texas at Austin.
Business and civic groups: Board memberships include the U.S.-Russia Business Council, American Petroleum Institute,
Center for Strategic and International Studies, Society of Petroleum Engineers and Boy Scouts of America.” [Dallas Morning
News, 8/5/05]
RUSSIAN OFFICIALS’ PRAISE FOR REX TILLERSON NOMINATION
Kremlin Spokesman: Rex Tillerson “Fulfills His Duties Rather Professionally, And A Large Amount Of Mutually
Beneficial Projects With Our Companies Was Planned.” According to ITAR-TASS, “The Kremlin spokesman said that
Tillerson is known in Moscow. As the CEO of one of the world's largest oil companies, he had contacts with Russian
representatives many times. ‘He fulfills his duties rather professionally, and a large amount of mutually beneficial projects with
our companies was planned. Unfortunately, a range of these projects were not implemented,’ [Putin spokesman Dmitry]
Peskov said.” [ITAR-TASS, 12/12/16]
Russian Parliament Foreign Affairs Committee Head: “Selection Of Tillerson Is A Sensation. This Businessman, By
Definition, Is A Pragmatist With A Wide Experience Of Work With Russia. Trump Continues To Amaze.”
According to the Washington Times, “Mr. Tillerson was definitely winning the support of the Kremlin, though, as Alexey
Pushkov, the head of the Foreign Affairs committee in the lower house of Russia's parliament, gave an unusually blunt and
public endorsement. ‘Selection of Tillerson is a sensation. This businessman, by definition, is a pragmatist with a wide
experience of work with Russia. Trump continues to amaze,’ Mr. Pushkov tweeted in Russian, according to Twitter's
translation function and minor grammar tweaks by The Washington Times.” [Washington Times, 12/12/16]
TILLERSON’S SUCCESS AT EXXON BEGAN WITH WORK IN RUSSIA
Private Empire: Tillerson “Had Risen To The Cusp Of The Top Job At Exxonmobil Partly On The Strength Of His
Work In Russia.” According to Private Empire: ExxonMobil and American Power, “In early April 2002, Rex Tillerson arrived at
the ExxonMobil terminal D at Love Field in Dallas to board a jet to Moscow. Tillerson had turned fifty less than three weeks
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efore. He had risen to the cusp of the top job at ExxonMobil partly on the strength of his work in Russia. The Bush
administration’s oil initiative placed ExxonMobil ‘s business dealings in Russia in a new light. There was now the potential, if
all went well, for ExxonMobil to acquire substantial equity oil in Russian fields, enough to make a major contribution to the
corporation’s reserve replacement requirements. There was no other place on Earth where the corporation enjoyed such full
and explicit partnership with the White House in the pursuit of such large oil holdings-the sort of partnership that
ExxonMobil executives often claimed they neither wanted nor needed.” [Private Empire: ExxonMobil and American Power,
pg. 258, 2012]
CNN’s Poppy Harlow: “One Of The Reasons That Rex Tillerson Was Actually Selected For The CEO Post At
Exxonmobil Back In 2006, Is In Part Because Of His Relationship With Russia.” According to CNN, “HARLOW:
Really? I mean, he did receive an award, the Order of Friendship, one of the highest awards that Russia bestows on foreign
citizens just a few years ago. And CNN Money is also reporting a really fascinating tidbit tonight. And that is that one of the
reasons that Rex Tillerson was actually selected for the CEO post at ExxonMobil back in 2006, is in part because of his
relationship with Russia. Do you know how far back that goes?” [CNN, 12/11/16]
2005: Eugene Lawson, President Of The U.S.-Russia Business Council On Rex Tillerson’s Ability To Deal With
The Russians: “Working With Russian Bureaucracy Is Never Very Smooth. […] He Was Able To Do A Straight
Zigzag Through A Minefield.” “According to the Dallas Morning News, “Mr. Tillerson, who also was not interviewed, cut
a deal with the Russian government in 2001 to allow the giant production project off of Sakhalin Island. Observers say
experience negotiating with the Russians is key for the chief executive as Russia's importance in the energy world increases.
‘Working with Russian bureaucracy is never very smooth,’ said Eugene Lawson, president of the U.S.-Russia Business Council.
‘He was able to do a straight zigzag through a minefield.’ Mr. Tillerson, who is a board member of the business council, won
the Russians over through his honesty and consistency, Mr. Lawson said.” [Dallas Morning News, 12/25/05]
Business Analyst and Consultant: “In The Long Run, Being A Trusted Friend Of Russia Will Probably Be Worth
More To Exxon Than Being A Short-Term Enemy Of The Obama Administration.” According to the Washington
Times, “Should Europe and the U.S. eventually back off the sanctions, Mr. Ruben said, that would vindicate Exxon and Mr.
Tillerson, who has a close relationship with Mr. Putin that Forbes magazine has dubbed a ‘bromance.’ ‘Exxon will be viewed
by Russia as a reliable 'friend' and long-term partner,’ he said. ‘In the long run, being a trusted friend of Russia will probably be
worth more to Exxon than being a short-term enemy of the Obama administration.’” [Washington Times, 10/1/14]
2003: Moscow Times Referred To Rex Tillerson As “ExxonMobil’s Point Man For Russia.” According to Valeria
Korchagina of the Moscow Times, “ExxonMobil is also eager to boost production in this country. The company said Tuesday
it was finally ready to begin work on Sakhalin-3, which could prove to be the most lucrative of the Sakhalin shelf projects -- all
of which, apart from the Shell-led Sakhalin-2, are either still in the exploration stage or simply dormant. ExxonMobil and
ChevronTexaco -- the two companies widely rumored to be bidding for a multi-billion-dollar stake in YukosSibneft -- won the
rights to the Sakhalin-3 bloc 10 years ago, but have been negotiating terms with the government ever since. ExxonMobil's
point man for Russia, Rex Tillerson, said the company has finally decided to give up on getting a production-sharing
agreement and will apply for an exploration license under standard legislation.” [Moscow Times, 9/24/03]
Tillerson was Head of Exxon’s Russian Affiliate in the 1990s
Rex Tillerson Was Appointed Head Of Exxon’s Russian Affiliate In The Late 90s. According to Voronezhskii kurier,
“Prior to that, Tillerson also spoke out against anti-Russian sanctions, which the Obama administration and the European
Union imposed because of the ‘annexation of Crimea’ and because of ‘the Kremlin’s backing militants in eastern Ukraine.’ In
the late 90s he was appointed president in Russian ‘daughter’ of Exxon - ‘Exxon Neftegas Limited’, then he met with Putin.”
[Voronezhskii kurier, 12/11/16]
As President Of Exxon Neftegas, Tillerson Was Responsible For Exxon’s Holdings In Russia. According to the
Australian, “Two names have emerged in the race to replace him: Rex Tillerson, senior vice-president with responsibility for
exploration and production, and Ed Galante, senior vice-president responsible for refining and chemicals. Both have excellent
credentials. Tillerson joined Exxon in 1975 as a production engineer, moving up the ladder before being made president of
Exxon Neftegas where he was responsible for Exxon's holdings in Russia. Galante joined Exxon's American marketing
department in 1972, and his senior roles include being chairman and managing director of Esso Thailand. The pair have been
paraded around Wall Street and the board of directors has met both men. But while some are already placing their bets,
analysts are not sure whether Raymond is going soon.” [Australian, 1/27/04]
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Tillerson Orchestrated Sakhalin Island Deal with Russian Government
Rex Tillerson’s Stewardship Of Exxon And Rosneft’s Drilling Project On Sakhalin Island Helped Make The Case
For His Promotion To CEO. According to the Australian, “Rosneft and Exxon have worked together since the 1990s on
the Sakhalin-1 project in Russia’s Far East, a venture Mr Tillerson helped negotiate. The Sakhalin project has faced years of
bureaucratic and other difficulties but has been successful in producing oil. Both Mr Tillerson and BP chief executive Bob
Dudley, who was brought in after last year’s deadly Deepwater Horizon explosion and oil spill, have extensive experience
dealing with Russia. Mr Dudley ran the TNK-BP joint venture for five years, an investment that has generated substantial
profits but also large headaches for the company. And Mr Tillerson’s ability to secure the Sakhalin deal helped vault him into
the top job at Exxon. In the end, it was Mr Tillerson who was able to secure access to the Kara Sea prospect, not Mr Dudley.”
[Australian, 9/1/11]
Tillerson Orchestrated Black Sea Deal with Russian Government
2011: Under Rex Tillerson, ExxonMobil Reached An Agreement With State-Run Russian Oil Company Rosneft To
Develop Hydrocarbon Resources In The Black Sea. According to Russian Oil Refining Industry, “OJSC "NK" Rosneft
"company, and ExxonMobil have reached an agreement on joint development of hydrocarbon resources of the Russian shelf
of the Black Sea. […] Chairman of the Board of Directors, ExxonMobil CEO Rex Tillerson, who was also present at the
signing ceremony, said that his company is "pleased to be able to expand cooperation with" Rosneft "for the benefit of the
development of Russia's energy sector.’ ‘Of ExxonMobil will complement the existing company ‘Rosneft’ advantages and
experience in this region, bringing to the project its technological leadership, high quality jobs and new technologies’, - said R.
Tillerson. - We already have a successful experience of cooperation with "Rosneft" in the "Sakhalin-1" project. We intend to
expand these relations in order to meet the Russian and the whole Black Sea region's energy needs.’” [Russian Oil Refining
Industry, 1/27/11]
Tillerson Orchestrated Kara Sea Deal with Russian Government
2011: Under Rex Tillerson, Exxonmobil And State-Run Russian Oil Company Rosneft Agreed On A Plan For The
Joint Development Of The Arctic Kara Sea And Other Regions Of The Russian Shelf. According to RIA Novosti,
“‘Rosneft’ and ExxonMobil on Tuesday agreed on joint development of the Arctic and other regions of the Russian shelf. The
authorities noted that the Americans have offered better conditions than the British BP, which deal fell through in early
summer, and experts have stated that the company plans to bring each other to a new level of international cooperation. […]
Prime Minister Vladimir Putin said that ‘Rosneft’ and ExxonMobil will invest in exploration in the Kara and Black Seas for $
3.2 billion.” [RIA Novosti, 8/30/11]
Tillerson Orchestrated Deal in Russia’s Caspian Sea
Early 1990s: Rex Tillerson Negotiated Exxon’s Investments In The Caspian Sea. According to the New York Times,
“A native of Wichita Falls, Tex., Mr. Tillerson, who turned 54 this month, joined Exxon in 1975 as a production engineer after
graduating from the University of Texas with a degree in civil engineering. He later ran some of Exxon's American operations.
In the early 1990's, he was responsible for negotiating the company's investments in Sakhalin Island in Russia, as well as in the
Caspian Sea. Since he started at Exxon, the energy business has changed radically. Easy-to-find oil has been mostly found,
opportunities for new resources are scarcer, competition is rising and governments are tightening the screws on international
oil companies.” [New York Times, 3/30/06]
Tillerson and Exxon Had Influence Over Russian Taxation of the Oil Industry
2011: Rex Tillerson Said That Agreements With Rosneft Were The Basis For A Dialogue With The Russian
Government To Change The Country’s Tax Structure For Offshore Drilling. According to Russian Natural Gas
Industry, “Rex Tillerson, Chairman and President of Exxon Mobil Corporation, who attended the signing ceremony, said that
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thanks to close cooperation with JSC ‘NK’ Rosneft ‘, of ExxonMobil will make a valuable contribution to the development of
the Russian energy sector.’ Such a large-scale partnership represents a significant strategic step for both companies, ‘said Mr.
Tillerson. ‘The agreement takes our relationship to a new level and will increase the capitalization of both companies. The
agreement is the basis for constructive dialogue with the Government to form the tax regime for offshore production based
on global best practices. "” [Russian Natural Gas Industry, 9/6/11]
Rex Tillerson Noted That The Project Started The Effort For The Russian Government To Reform The
Taxation Of The Oil Industry. According to Russian Natural Gas Industry, “Eduard Khudainatov and Rex
Tillerson noted that the impetus for the further development of the project began the efforts of the Russian
Government to reform the taxation of promising sectors of the oil industry and the improvement of the investment
climate for foreign and Russian oil company.” [Russian Natural Gas Industry, 4/17/12]
Rex Tillerson Said Russia’s Tax Overhaul Helped “Expand Co-Operation In The Difficult Environment Now In
Russia.” According to the Australian, “Exxon has not finalised the financial terms for the Arctic exploration. That leaves a
critical piece of the deal to be negotiated with Russian officials. Russia’s heavy tax burden deters much new oil exploration,
industry officials say. At the signing ceremony yesterday, Exxon chief executive Rex Tillerson hailed the Russian government’s
efforts to overhaul the tax system, which he said ‘help expand co-operation in the difficult environment now in Russia’,
Interfax reported.” [Australian, 9/1/11]
2012: Rex Tillerson Praised Putin’s Announcement Eliminated Export Tax And Lowering The Mineral Extraction
Tax Encouraging Offshore Oil Drilling Investment In Russia. According to Fair Disclosure, “In addition, President-
Elect Putin recently announced fiscal terms to encourage the offshore development in Russia. These improved terms eliminate
the export tax and lower the mineral extraction tax. These terms would be stable for 15 years from the commencement of
commercial production. Our agreement also provides ExxonMobil and Rosneft the opportunity to strengthen our global
partnership beyond Russia. Our Strategic Cooperation Agreement has provided Rosneft with an opportunity to gain equity
interest in a number of ExxonMobil opportunities in North America and other regions of the world.” [Fair Disclosure,
4/18/12]
Tillerson Was Assured That Exxon’s Kara Sea Deal with Rosneft Would Operate Under Special Tax
Regulations
Rex Tillerson Received Assurances From The Russian Government That The Rosneft Deal Would Be Conducted
Under A Special Tax Regimen. According to Vedomosti via BBC Monitoring Former Soviet Union, “The first round of
negotiations between the companies had no result: Already in 2010, Exxon had refused participation in joint development of
the Arctic shelf, referring to the expense of the project. Yesterday at a meeting with Putin, the general director of the
American company, Rex Tillerson, received assurances to the effect that the project would be implemented in a special tax
regimen, explains a source close to Rosneft. Its parameters have not yet been defined, but Rosneft has proposals in this regard,
says a source close to the state holding.” [Vedomosti via BBC Monitoring Former Soviet Union, 9/2/11]
Rex Tillerson Said Putin’s Move To Abolish Duties And Reduce Mineral Extraction Taxes Led To ExxonMobil’s
Deal With Rosneft. According to Platts Oilgram News, “Tillerson said a recent decision by Russia’s President-elect Vladimir
Putin to provide a favorable fiscal regime for offshore reserves by abolishing export duty and reducing mineral extraction tax
supported the two companies’ ambitious plans to develop Russia’s offshore.” [Platts Oilgram News, 4/19/12]
Under Tillerson, Exxon Developed Business and Influence in Russia
Rex Tillerson Said That ExxonMobil Helped To Rewrite Russia’s “Hydrocarbon Law” Following The Breakup Of
The Soviet Union. According to the UT Alumni Business Conference, "What we find is in most of the countries where we
are first entering, and this was the case when I first went to Russia; and I went there as the Soviet Union had broken up. They
had Soviet laws on the books. They wanted to write new laws. They didn't have any. They wanted our help. So we helped
them write it; they're hydrocarbon law." [Rex Tillerson at UT Alumni Business Conference, 2/21/13]
International Herald Tribune: “Desperate For Investments When Oil Prices Sank In The 1990s, Russia Agreed To
Give Exxon Generous Terms That Exempted It From Most Taxes And Allowed It To Sell Much Of The Oil It
Prospected.” According to The International Herald Tribune, “But the Russian authorities have reneged on deals with Exxon
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in the past. Desperate for investments when oil prices sank in the 1990s, Russia agreed to give Exxon generous terms that
exempted it from most taxes and allowed it to sell much of the oil it prospected. But in recent years, the local authorities have
interfered in operations.” [The International Herald Tribune, 1/29/11]
Sylvia Pfeifer Of The Sunday Telegraph: “Exxon Owes Much Of Its Success In Russia To Rex Tillerson.”
According to the Sunday Telegraph, “In the next few days, a station in the far east of Russia will begin pumping oil through a
pipeline to an ex-port terminal 140 miles away on the Tartar Strait. The oil will be the first export cargo from Sakhalin 1, the
giant field operated by ExxonMobil. It will be a significant milestone for the world's largest oil company, which started work
on the project more than a decade ago. By the end of the year, the field will contribute 250,000 barrels of oil a day in new
production to the company. Exxon owes much of its success in Russia to Rex Tillerson, the new man at the helm. A civil
engineer who came up through the ranks, Tillerson, 54, took over from the long-serving Lee Raymond as the company's
chairman and chief executive at the start of this year.” [Sylvia Pfeifer, Sunday Telegraph, 8/27/06]
ATTEMPTED ACQUISITION OF YUKOS THWARTED BY GOVERNMENT
In The 2000s Exxon Failed To Acquire Stake In Russia’s Largest Oil Company After The Kremlin Arrested The
Company’s Main Shareholder In Politically Motivated Attempt To Transfer Assets To Russia’s State-Owned,
Rosneft. According to The International Herald Tribune, “In the early 2000s, Exxon was intent on acquiring a large stake in
Yukos, once Russia’s largest private oil company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s main
shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets to
the state oil company, Rosneft.” [The International Herald Tribune, 1/29/11]
Rex Tillerson Failed In 2003 To Acquire A Stake In Russian Oil Company Yukos. According to Daily Deal/The Deal,
“The Rosneft deal was also considered a coup for Tillerson, who had failed in his attempt to buy a stake in another Russian oil
company, Yukos, in 2003. At the time, the Yukos CEO Mikhail Khodorkovsky landed in jail on corruption charges, and the
company was forced into bankruptcy, with its assets going to Rosneft.” [Daily Deal/The Deal, 9/18/11]
Exxon Failed To Acquire A Stake In Yukos After The Kremlin Arrested The Company’s Main Shareholder
In An Attempt To Transfer Assets To Russia’s State-Owned Rosneft. According to The International Herald
Tribune, “In the early 2000s, Exxon was intent on acquiring a large stake in Yukos, once Russia’s largest private oil
company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s main shareholder, Mikhail B.
Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets to the state oil
company, Rosneft.” [International Herald Tribune, 1/29/11]
2003: ExxonMobil Attempted To Control A Large Stake In Yukos But The Deal Fell Apart After The Russian
Government arrested Yukos CEO Mikhail B. Khodorkovsky. According to The New York Times, “The Exxon-Rosneft
agreement commits Exxon to spend about $1 billion looking for oil off Russia’s Black Sea coast, and holds the promise of
sharing in the prize if it is discovered. But Russian authorities have reneged on deals with Exxon in the past. Desperate for
investments when oil prices sank in the 1990s, Russia agreed to give Exxon generous terms that exempted it from most taxes
and allowed it to sell much of the oil it prospected. But in recent years, local authorities have interfered in operations. In the
early 2000s, Exxon was intent on acquiring a large stake in Yukos, once Russia’s largest private oil company. But those efforts
fell apart in 2003 when the Kremlin arrested Yukos’s main shareholder, Mikhail B. Khodorkovsky, in what has been viewed as
a politically motivated effort to transfer Yukos assets to the state oil company, Rosneft.” [The New York Times, 1/28/11]
2003: Following The Arrest And Detention Of Yukos CEO Mikhail Khodorkovsky, Rex Tillerson Said, “There's A
Lot Of Noise, But This Is A Long-Term Business. Let's Wait And See How It Plays Out.” According to Oil and Gas
Journal, “While many have voiced serious concerns about the recent arrest and detention of former OAO Yukos CEO
Mikhail Khodorkovsky, several government and energy executives played down the controversial incident reiterating their
commitment to energy development in Russia. A group of Russian and American energy and financial executives met Nov.
12-14 in Boston for the 7th US-Russian Investment Symposium, sponsored by Harvard University and Dow Jones
Conferences. The meeting came just weeks after the Khodorkovsky arrest, the topic dominated discussions at the conference.
[…] Several executives from major energy companies made it patently clear that they see Russia as part of their long-term
plans, and they are fully aware of the risks. ‘Be very careful not to criticize, when we don't have all the facts,’ said Archie
Dunham, chairman of ConocoPhillips, adding, ‘We're not going to be quickly discouraged. We want political stability, and for
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Putin to implement the rule of law.’ ‘There's a lot of noise, but this is a long-term business. Let's wait and see how it plays
out,’ said Rex Tillerson, senior vice-president, ExxonMobil Corp.” [Oil and Gas Journal, 11/24/03]
Tillerson Brushed Off Imprisonment of Russian Oil Executive Mikhail Khodorkovsky in Favor of Future
Business Opportunities with Russia
Exxon Negotiated A Deal With Mikhail Khodorkovsky To Acquire A Stake In Yukos, But The Kremlin Moved To
Imprison Khodorkovsky “On What Were Widely Seen As Politically Motivated Charges.” “The Rosneft partnership
was not the first time ExxonMobil had attempted to join forces with a major Russian energy firm. Tillerson’s predecessor had
negotiated a deal with Russian energy giant Yukos for a stake in that company. But the Kremlin turned on Yukos and its boss
Mikhail Khodorkovsky, imprisoning him in 2003 on what were widely seen as politically motivated charges.”
2003: Following The Arrest And Detention Of Yukos CEO Mikhail Khodorkovsky, Rex Tillerson Said, “There's A
Lot Of Noise, But This Is A Long-Term Business. Let's Wait And See How It Plays Out.” According to Oil and Gas
Journal, “While many have voiced serious concerns about the recent arrest and detention of former OAO Yukos CEO
Mikhail Khodorkovsky, several government and energy executives played down the controversial incident reiterating their
commitment to energy development in Russia. A group of Russian and American energy and financial executives met Nov.
12-14 in Boston for the 7th US-Russian Investment Symposium, sponsored by Harvard University and Dow Jones
Conferences. The meeting came just weeks after the Khodorkovsky arrest, the topic dominated discussions at the conference.
[…] Several executives from major energy companies made it patently clear that they see Russia as part of their long-term
plans, and they are fully aware of the risks. ‘Be very careful not to criticize, when we don't have all the facts,’ said Archie
Dunham, chairman of ConocoPhillips, adding, ‘We're not going to be quickly discouraged. We want political stability, and for
Putin to implement the rule of law.’ ‘There's a lot of noise, but this is a long-term business. Let's wait and see how it plays
out,’ said Rex Tillerson, senior vice-president, ExxonMobil Corp.” [Oil and Gas Journal, 11/24/03]
Rex Tillerson Attended An Energy Summit With Mikhail Khodorkovsky Weeks Before His Arrest.
According to the Daily Telegraph, “ExxonMobil's chairman, David O'Reilly, and its senior vice-president, Rex
Tillerson, attended a commercial energy summit in St Petersburg last week, at which Mr Khodorkovsky was present.
In a speech to the conference Mr Tillerson stressed ExxonMobil's interest in expanding in Russia.” [Daily Telegraph,
10/3/03]
TILLERSON OPPOSED SANCTIONS AGAINST RUSSIA THAT WOULD HARM
EXXON’S BOTTOM LINE
Rex Tillerson Criticized U.S. Sanctions Against Russia As Harmful For Business. According to Russian Oil Refining
Industry, “Russia has found buyers for a stake in "Rosneft" oil company, despite the Western sanctions. As reported on
Thursday, the newspaper The New York Times, the deal to sell a stake to Swiss trader Glencore and the Qatar sovereign fund
"has denied the expectation that no investor would dare to buy a stake in Russian assets, given entered the West sanctions
against Russia." The emergence of foreign money in the deal "demonstrates that investors re-evaluate the issue of sanctions
following the election of Donald Trump, who played for the warming of relations with Moscow and considers Rex Tillerson,
chairman of ExxonMobil as a candidate for the post of US Secretary of State," the newspaper said. Tillerson criticized
sanctions as a harmful business after the result was stopped by a joint venture with Exxon "Rosneft" drilling in the Kara Sea in
the Russian sector Arktiki.” [Russian Oil Refining Industry, 12/9/16]
Rex Tillerson Pushed For The Abolition Of Economic Sanctions Against Russia. According to Kommersant, “In 2013,
Rex Tillerson, who took part in the St. Petersburg International Economic Forum, even received from President Vladimir
Putin the Order of Friendship of hands "for significant contribution to the strengthening of cooperation in the fuel and energy
sector." Later, after the introduction of Western sanctions against Russia, he played for their abolition.” [Kommersant,
12/12/16]
Tillerson Downplayed The Need For Sanctions after Russian Invasion of Ukraine and Lobbied Against
Sanctions
Rex Tillerson On Russia Conflict In Ukraine: “We Don't Take Sides In Any Geopolitical Events.” According to
National Post’s Financial Post & FP Investing, “Tillerson is scheduled to brief a gathering of investors and analysts on the
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company's growth outlook at the New York Stock Exchange on Wednesday. Exxon closed the transaction for the additional
acreage in May, completing an agreement made 15 months before, said Patrick McGinn, a company spokesman. The May
closing was about two months after the Russian annexation of Crimea that spurred U.S. and EU leaders to escalate sanctions.
‘We don't take sides in any geopolitical events,’ Tillerson said of the conflict in Ukraine a year ago.” [National Post’s Financial
Post & FP Investing, 3/4/15]
2014: Rex Tillerson Said That The Situation In Ukraine Would Cause “No Impact On Any [Of ExxonMobil’s]
Activities Or Plans…Barring Governments Taking Steps Beyond Our Control…Like Sanctions.” According to Dallas
Morning News, “Exxon Mobil Corp. has put its Ukraine offshore natural gas prospect on hold because of the political
situation there, company officials told analysts Wednesday. But Exxon is pressing ahead with large-scale investments in Russia,
as well as a Black Sea oil project just east of Crimea, they said. […] Rex Tillerson, Exxon Mobil’s chairman and CEO, said the
company’s Russian projects were moving ahead. ‘As for the current situation, obviously it’s early days,’ he said. ‘There’s been
no impact on any activities or plans at this point, nor would we expect there to be any, barring governments taking steps
beyond our control. ‘In terms of our view of country risk, geopolitical risk, other than things like sanctions, we don’t see any
new challenges out of the current situation,’ he said.” [Dallas Morning News, 3/6/14]
Rex Tillerson On Tensions Between Russia And Ukraine: “I Don’t See Any New Challenges” For
ExxonMobil. According to Platts Oilgram News, “Overseas, ExxonMobil has a ‘fairly active’ exploration program in
Russia, said Tillerson, who said ongoing tensions between Russia and Ukraine have had no impact on the company’s
operations there. ‘I don’t see any new challenges,’ Tillerson said, adding government actions were beyond their
control.” [Platts Oilgram News, 3/6/14]
Rex Tillerson Lobbied Against U.S. Sanctions On Russia After Russia Invaded Ukraine And Seized The Crimean
Peninsula. According to the Los Angeles Times, “When Russian forces invaded Ukraine and seized the Crimean peninsula in
2014, Tillerson lobbied against U.S. sanctions because Exxon would lose millions of dollars. The Obama administration, with
congressional backing, imposed the sanctions on Russia anyway, and Exxon was forced to abandon projects estimated to have
cost it about $1 billion.” [Los Angeles Times, 12/11/16]
Rex Tillerson On U.S. Sanctions On Russia For Seizing Crimea: “We Always Encourage The People Who Are
Making Those Decisions To Consider The Very Broad Collateral Damage Of Who Are They Really Harming With
Sanctions.” According to the New York Times, “Western sanctions prohibiting certain energy development activities have
posed a hurdle to Exxon's in-vestments in Russia, particularly a joint venture with Rosneft that was supposed to start drilling
for oil in 2014 in the Kara Sea, part of the Arctic Ocean. Mr. Tillerson has spoken out against sanctions in part be-cause the
company is unable to collect revenues from an investment in an oil and gas consortium to which Exxon belongs that operates
off Sakhalin Island. "We always encourage the people who are making those decisions to consider the very broad collateral
damage of who are they really harming with sanctions," Mr. Tillerson told shareholders at the company's 2014 annual
meeting.” [New York Times, 12/10/16]
Rex Tillerson Said ExxonMobil Did Not Support Sanctions Because Effective Sanctions Were “Difficult.” According
to Platts Oilgram News, “‘We've been through sanctions before,’ said the CEO, speaking broadly about ExxonMobil's global
operations. But he said his company generally does not support sanctions because they are not effective unless they are wellimplemented
which he called ‘difficult...You have to ask who they harm and whether they're effective or not.’” [Platts Oilgram
News, 5/29/14]
2014: Rex Tillerson Said ExxonMobil Opposed U.S. Sanctions Against Russia. According to Russian Oil Refining
Industry, “Partner "Rosneft" US oil giant ExxonMobil Corp (one of the world's largest companies by market capitalization)
does not support US sanctions against Russia, Reuters reported with reference to the general director of Exxon, Rex Tillerson.
At the head of the Ministry of Energy and "Rosneft" last week, whose head Igor Sechin was in May, in the sanctions list USA
as a person from an environment of the president of Russia, said that ExxonMobil is in Russia, where develops one of the
largest for themselves overseas projects - Sakhalin-1 . "We are extremely proud of our achievements in Russia we them good
partners." - said Tillerson. Several Western oil companies in recent years have left Russia because of the deterioration of the
business climate, but Exxon continues to work like other giants, including British BP (has a 19.75% stake in "Rosneft") and
French Total.” [Russian Oil Refining Industry, 5/30/14]
Tillerson Made Repeated Visits To The White House In An Attempt To Lobby Against Sanctions On Russia And
Influence Their Implementation To Protect Exxon’s Business Interests. According to Bloomberg, “Tillerson made at
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least 20 visits to the White House during President Barack Obama’s two terms, visitor logs show, including five after Obama
began authorizing the 2014 sanctions in response to Russian aggression toward Ukraine. Tillerson, who has questioned
whether sanctions work, was concerned that European nations might not apply the restrictions as strictly as the U.S., giving
Exxon’s European competitors an advantage, according to a White House official at the time, who asked not to be identified
because the purpose of the visits was never made public.” [Bloomberg, 12/12/16]
Tillerson Visited Russia to Discuss Exxon’s Ability to Work Around U.S. Sanctions and Continue Working
with Rosneft
Despite Sanctions Against Russia, ExxonMobil Significantly Increased Its Russian Holdings In 2014 And Held
More Oil Rights In Russia Than The U.S. According to National Post’s Financial Post & FP Investing, “Exxon Mobil
shook off the chill of sanctions and continued to snap up drilling rights in Russia last year, giving it more exploration holdings
in Vladimir Putin's backyard than in the United States. Taking the long view, Exxon boosted its Russian holdings to 63.7
million acres in 2014 from 11.4 million at the end of 2013, according to data from U.S. regulatory filings. That dwarfs the 14.6
million acres of rights Exxon holds in the U.S., which until last year was its largest exploration prospect. While U.S. and
European Union sanctions against Russia forced Exxon to shut down an Arctic drilling pro-ject in October, there were no
legal obstacles barring the company from staking claims to areas that could yield tens of billions of barrels in coming decades.
The bet on Russia follows a string of drilling failures elsewhere and spending cuts that will likely be addressed in chief
executive Rex Tillerson's investor meeting Wednesday.” [National Post’s Financial Post & FP Investing, 3/4/15]
Rex Tillerson Visited Moscow In March 2015 After The U.S. Imposed Sanctions On Russia. According to Platts
Oilgram News, “ExxonMobil CEO Rex Tillerson visited Moscow Wednesday to discuss the company's oil projects in Russia,
in talks expected to include potential alternatives to its suspended joint project with Rosneft in Russia's Arctic in the wake of
Western sanctions, according to a source. Tillerson is likely to discuss ongoing opportunities for cooperation with
ExxonMobil's key Russian partner Rosneft, after sanctions imposed by the US against Russia over its role in the Ukraine crisis
effectively blocked ExxonMobil's involvement in some operations, including the Arctic Kara Sea project.” [Platts Oilgram
News, 3/19/15]
Rex Tillerson Met With Deputy Prime Minister Arkady Dvorkovich, Energy Minister Alexander Novak,
Finance Minister Anton Siluanov And Igor Sechin In March 2015. According to ITAR-TASS, “Earlier in March
ExxonMobil CEO Rex Tillerson came to Moscow for talks. Tillerson met with Deputy Prime Minister Arkady
Dvorkovich, Energy Minister Alexander Novak, Finance Minister Anton Siluanov, and twice with the Executive
Chairman of Rosneft Igor Sechin. As media reported, the officials listened to ExxonMobil arguments, but failed to
come to an agreement. The issue will be further discussed by the Russian Government.” [ITAR-TASS, 4/2/15]
As The Obama Administration Encouraged Distance From Russia And Prepared Sanctions Against Them,
Tillerson Was Pursuing An Agreement To Promote More Business With State-Owned Rosneft To Expand Joint
Drilling In The Arctic Ocean. According to the New York Times, “Mr. Tillerson’s clever maneuvering in Russia at a time of
growing tensions with the West was amply shown in 2014, shortly after the United States and its allies applied sanctions on
Russia for meddling in Ukraine. President Obama asked American business leaders not to attend a major business forum in
Russia that May, and Mr. Tillerson obeyed the president’s wishes. But Mr. Tillerson, Exxon Mobil’s chief executive, still found
a way to get a seat at the table. He sent his company’s top exploration official in his place. The official, Neil W. Duffin, signed
an agreement to promote more business with state-owned Rosneft to expand joint drilling in the Arctic Ocean, develop shale
fields with new technologies and cooperate on a gas export plant in Siberia. Tougher sanctions eventually froze the growth of
Exxon’s activities in Russia, but Mr. Tillerson had once again proved his commitment to doing business with the country’s
president, Vladimir V. Putin.” [New York Times, 12/11/16]
Tillerson Lobbied Against Sanctions To Preserve His Business Deal With Rosneft. According to Politico,
“Shortly before sending his emissary to St. Petersburg to sign the deal, Tillerson told reporters in Texas that he was
lobbying Washington against sanctions. ‘Our views are being heard at the highest levels,’ he said. ‘There has been no
impact on any of our business activities in Russia to this point, nor has there been any discernible impact on the
relationship’ with Rosneft, he added.” [Politico, 12/10/16]
Tillerson Has Opposed Sanctions On Russia Because He Saw Them As A Barrier To New Oil
Development In The Barents Sea And The Bazhenov Shale Field In Western Siberia. According to the New
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York Times, “Mr. Tillerson has opposed sanctions on Russia, which are the single greatest obstacle to foreign
investment in that country. Russia has two enormous areas for new oil development, in the Barents Sea and the
Bazhenov shale field in western Siberia, that are essentially closed to development because of a lack of foreign capital
and expertise. Exxon was poised to invest in both areas before the sanctions.” [New York Times, 12/11/16]
Exxon Work in Russia Was Effected by U.S. Sanctions
ExxonMobil Halted Work On Nine Projects With State-Owned Russian Oil Company Rosneft Due To U.S.
Sanctions Against Russia. According to RIA Novosti, “The head of the American ExxonMobil Rex Tillerson will visit
Moscow this week for meetings with representatives of the Russian government and its strategic partner - ‘Rosneft’, reports
Bloomberg, citing sources familiar with the situation. According to preliminary plans, the CEO of ExxonMobil will meet with
officials on Wednesday reported two sources. At the same time one of the sources said that the planning of meetings could
affect celebrations to mark the anniversary of the annexation of Crimea to Russia. The representatives of ExxonMobil and
‘Rosneft’ does not comment on the possible visit to Moscow Tillerson. Previously, ExxonMobil because of sanctions against
Russia halted work on nine projects in the framework of a strategic cooperation agreement with ‘Rosneft’. In late February,
ExxonMobil said in a report that assesses the loss of output from joint ventures with ‘Rosneft’ in the $ 1 billion by the end of
2014.” [RIA Novosti, 3/16/15]
CNN: “Exxon Said It Could Have Lost Up To $1 Billion Due To The Sanctions” And Would Therefore Stand To
“Gain If Sanctions Are Lifted On Russia By The New Administration.” According to CNN, “In 2014, Exxon was hit
hard by a round of U.S. and European Union sanctions that targeted Russia for its intervention in Ukraine. Exxon said it
could have lost up to $1 billion due to the sanctions, according to regulatory filings. Exxon would likely stand to gain if
sanctions are lifted on Russia by the new administration.” [CNN, 12/11/16]
Rex Tillerson Said ExxonMobil Would Resume Its Arctic, Deepwater And Tight Oil Projects In Russia If The U.S.
Lifted Sanctions. According to Platts Oilgram News, “ExxonMobil would be eager to resume its Arctic, deepwater and tight
oil projects in Russia if US sanctions are lifted, CEO Rex Tillerson said Wednesday. The US supermajor in 2014 was forced to
suspend its highly anticipated exploration work in the Russian Arctic Kara Sea with state-owned Rosneft, after the US
imposed sanctions on Russia over the Ukraine crisis. ExxonMobil, under a 2011 strategic cooperation agreement it signed with
Rosneft, also had plans to ex-plore in deepwater offshore the Black Sea and in unconventional tight oil formations in West
Siberia. ‘We would be interested in getting back to work,’ Tillerson said at ExxonMobil's analyst meeting, which was webcast
from New York. ‘We'll just have to wait. We're going to remain in full compliance with the sanctions.’ The sanctions bar the
transfer of Western technology necessary for Arctic, deepwater and shale oil pro-jects, while also restricting Russian
companies' access to Western financing.” [Platts Oilgram News, 3/3/16]
Tillerson was Eager to Get Back to Work with Russia Without Sanctions
Exxon’s Exploration Chief Attended A Business Forum In Russia In Rex Tillerson’s Place Despite Pleas From The
White House That American Companies Not Attend After U.S. Imposed Sanctions on Russians. According to the
New York Times, “Like many chief executives of American companies, Rex W. Tillerson of Exxon Mobil didn't attend the
major business forum in Russia last month, at the urging of White House officials. But the company's exploration chief, Neil
W. Duffin, did. In a ceremony at the event, Mr. Duffin signed an agreement with Igor I. Sechin, the head of the state-owned
Rosneft, to expand its joint ventures to drill offshore in the Arctic Ocean, to explore for shale oil in Siberia and to cooperate
on a liquefied natural gas plant in Vladivostok. The deal came just weeks after the United States government imposed
sanctions on the personal dealings -- though not the corporate activities -- of Mr. Sechin, a former military intelligence agent
and longtime aide to President Vladimir V. Putin.” [New York Times, 6/10/14]
2015: Rex Tillerson Had A Closed-Door Meeting With The Russian Minister Of Energy. According to RIA Novosti,
“The head of the American ExxonMobil Rex Tillerson will meet with the Minister of Energy of the Russian Federation
Alexander Novak on Wednesday, March 18, RIA Novosti learned from the Ministry of Energy. The meeting will be held
behind closed doors, said a ministry spokesman. What issues will be discussed, he did not elaborate. The press service of
"Rosneft" does not comment on the possible participation of representatives of the company in meetings with the head of
ExxonMobil. Earlier media reports citing its sources reported that Tillerson visit Moscow this week for meetings with
representatives of the Russian government and its strategic partner - "Rosneft". Previously, ExxonMobil because of sanctions
against Russia halted work on nine projects in the framework of a strategic cooperation agreement with "Rosneft". In late
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February, ExxonMobil said in a report that assesses the loss of output from joint ventures with "Rosneft" in the $ 1 billion by
the end of 2014.” [RIA Novosti, 3/17/15]
The Russian Ministry Of Energy Said The Meeting Included Discussion Of The Russian Tax Structure For
Oil Companies. According to RIA Novosti, “Russian Energy Minister Alexander Novak met with the president of
the American ExxonMobil Corporation Rex Tillerson and c head of the Russian division of the company Glenn
Waller, reported the Ministry of Energy. "The meeting discussed topics related to the project" Sakhalin-1 ", in
particular the issues of realization of gas from the project and the tax regime," - said the agency. In addition, Novak
and Tillerson exchanged views on the situation on the world oil market and possible options for the development of
the price situation. "The president of ExxonMobil said the company still considers Russia an important region for
business development and expressed hope for continued cooperation Alexander Novak said that Russia is interested
in cooperation with ExxonMobil.", - Added to the message.” [RIA Novosti, 3/18/15]
2016: Rex Tillerson Said The First Time He Met With Russian Officials After Sanctions Were In Place The Officials
Were Worried He Was In Trouble With The U.S. Government Because “You've Been Doing Business With Us.”
According to U Texas BBA, TILLERSON: "And so we’ve got the sanctions in place right now and he understands I’m gonna
comply with the sanctions. There’s not any conversation otherwise about that. And they recognize that. The first time I went
over to see them after the sanctions were in place I was a little nervous. And it was interesting because the first question they
asked me was, ‘well, how are you doing? Are you okay?’ And I said, ‘well, yeah I’m fine, why do you ask this?’ They said,’ well
we just wondered whether your government was coming after you because you’ve been doing business with us.’ So they were
more worried about me. So they understood. You know, we understand you can’t do certain things now. And what I tell them
is, you know, we’re not going anywhere, we’ve been around 130 years. When the sanctions are over, we’ll all sit down and get
back to workn’ and until then we’ll just have to comply with the law." [Rex Tillerson at U Texas BBA, 2/18/16]
2016: Rex Tillerson Attended The St. Petersburg International Economic Forum. According to IT Manager, “President
of "Rosneft" Igor Sechin managed to gather at the forum impact the composition of the top managers of Western oil
companies: with him in public, agreed to serve as head of the British BP, the Italian Eni, French Total and US ExxonMobil.
And he spoke before a discussion with a great keynote speech about the fate of the oil market. Observers note: it was tracing
the behavior of Vladimir Putin: at a table with figures in rank to slander the world’s theses on how to live. […] Chairman of
the Board of the American ExxonMobile Rex Tillerson and did let himself anti-American joke. ‘And then there is someone in
the room from the US government? I’d handed him a word, that he commented on the sanctions! ‘And Sechin again smiled.”
[IT Manager, 6/16/16]
Rex Tillerson Circumvented Pres. Obama’s Request That U.S. Business Leaders Skip A Putin Business
Forum By Sending A Top Official In His Place. According to the New York Times, “Mr. Tillerson's clever
maneuvering in Russia at a time of growing tensions with the West was amply shown in 2014, shortly after the United
States and its allies applied sanctions on Russia for meddling in Ukraine. President Obama asked American business
leaders not to attend a major business forum in Russia that May, and Mr. Tillerson obeyed the president's wishes. But
Mr. Tillerson, Exxon Mobil's chief executive, still found a way to get a seat at the table. He sent his company's top
exploration official in his place. The official, Neil W. Duffin, signed an agreement to promote more business with
state-owned Rosneft to expand joint drilling in the Arctic Ocean, develop shale fields with new technologies and
cooperate on a gas export plant in Siberia. Tougher sanctions eventually froze the growth of Exxon's activities in
Russia, but Mr. Tillerson had once again proved his commitment to doing business with the country's president,
Vladimir V. Putin.” [New York Times, 12/12/16]
2016: Rex Tillerson Said He Told Russian Officials “When The Sanctions Are Over, We'll All Sit Down And Get
Back To Work’n.” According to U Texas BBA, TILLERSON: "And so we've got the sanctions in place right now and he
understands I'm gonna comply with the sanctions. There's not any conversation otherwise about that. And they recognize
that. The first time I went over to see them after the sanctions were in place I was a little nervous. And it was interesting
because the first question they asked me was, 'well, how are you doing? Are you okay?' And I said, 'well, yeah I'm fine, why
do you ask this?' They said,' well we just wondered whether your government was coming after you because you've been
doing business with us.' So they were more worried about me. So they understood. You know, we understand you can't do
certain things now. And what I tell them is, you know, we're not going anywhere, we've been around 130 years. When the
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sanctions are over, we'll all sit down and get back to work’n and until then we'll just have to comply with the law." [Rex
Tillerson at U Texas BBA, 2/18/16]
March 2016: Rex Tillerson Said Exxon Was Eager To Get Back To Working With Russia Without Sanctions.
According to CNN, “HARLOW: I have to button it up, guys. But on the business point, I mean, there is an important point
to make. And this is just fact. There is no opinion. In the fact that Exxon has this huge deal in Russia. That because of the
sanctions against Russia got halted, that has cost Exxon about $1 billion so far, according to regulatory filings. Rex Tillerson in
March said, we're very anxious to get back to work there. And that therein lies the questions about what hat you're wearing as
the businessman he is now and if you can completely take that off, be-coming secretary of state.” [CNN, 12/11/16]
Rex Tillerson Said ExxonMobil Was Eager To Resume Projects In Russia After The Lifting Of U.S. Sanctions.
According to Platts Oilgram News, “ExxonMobil, however, was cautious in its estimates of the discovery, with many experts
pointing out the necessity of conduct additional exploration and appraisal studies. In March, ExxonMobil CEO Rex Tillerson
said his company would be eager to resume its projects in Russia if US sanctions were lifted.” [Platts Oilgram News, 6/16/16]
Rex Tillerson Said ExxonMobil Would Resume Its Arctic, Deepwater And Tight Oil Projects In Russia If The U.S.
Lifted Sanctions. According to Platts Oilgram News, “ExxonMobil would be eager to resume its Arctic, deepwater and tight
oil projects in Russia if US sanctions are lifted, CEO Rex Tillerson said Wednesday. The US supermajor in 2014 was forced to
suspend its highly anticipated exploration work in the Russian Arctic Kara Sea with state-owned Rosneft, after the US
imposed sanctions on Russia over the Ukraine crisis. ExxonMobil, under a 2011 strategic cooperation agreement it signed with
Rosneft, also had plans to ex-plore in deepwater offshore the Black Sea and in unconventional tight oil formations in West
Siberia. ‘We would be interested in getting back to work,’ Tillerson said at ExxonMobil's analyst meeting, which was webcast
from New York. ‘We'll just have to wait. We're going to remain in full compliance with the sanctions.’ The sanctions bar the
transfer of Western technology necessary for Arctic, deepwater and shale oil pro-jects, while also restricting Russian
companies' access to Western financing.” [Platts Oilgram News, 3/3/16]
2016: Rex Tillerson Said ExxonMobil Wanted To Resume Drilling In Russia’s Arctic Shelf After U.S. Sanctions
Were Lifted. According to Russian Oil Refining Industry, “The American company "ExxonMobil" (Exxon Mobil) wants to
resume drilling on the Arctic shelf of Russia, as well as in the Black Sea in the case of the lifting of sanctions. This was stated
by the head of Exxon's Rex Tillerson at a meeting with analysts, according to Bloomberg agency. "Of Exxon is looking
forward to return to work in Russia", - he said. Exxon Mobil because of the sanctions imposed against Russia turned 9 out of
10 joint projects with "Rosneft", including exploration and production potential in the Black Sea, in the Arctic and in Western
Siberia. According to the financial report, the company estimates losses from the sanctions of up to $ 1 billion. In particular,
the sanctions hit the cooperation with the company "Rosneft" to conduct exploration work in the Kara Sea, where a new
deposit "Victory" with reserves of 130 million tons of oil and 499.2 billion cubic meters of gas was discovered in 2014.”
[Russian Oil Refining Industry, 3/4/16]
TILLERSON’S VIEWS ON THE RUSSIAN GOVERNMENT AND POLICIES
2007: Rex Tillerson Told The Wall Street Journal: “I Don’t Know Whether Anyone Ever Will Be Able To Sort Out
Entirely Why The Russian Government Does What It Does.” According to The Toronto Star, “Exxon Mobil counts its
own Sakhalin project among its top 10 most important initiatives worldwide. The firm’s new CEO, Rex Tillerson, owes his job
in large part to spearheading the immense project over the past several years. But the firm has endured countless battles
between Moscow and local governors that have repeatedly required Exxon Mobil to submit to arbitrary contractual changes
that have threatened Sakhalin’s financial viability. Tillerson confessed last week in a Wall Street Journal interview, ‘I don’t
know whether anyone ever will be able to sort out entirely why the Russian government does what it does.’” [The Toronto
Star, 5/20/07]
2007: Rex Tillerson Was Hopeful Russia Would Create A Stable Investment Environment Allowing Exxon And
Foreign Businesses To Invest In The Country’s Natural Resources. According to the Council on Foreign Relations,
“MS. WHITMAN: Does that in any way undermine what you talked about -- about the international market-place and the
stability and really what -- that the United States should not have any concern about the amount of oil and gas being imported?
MR. TILLERSON: Well, I think the only concern would be, the United States should want to do everything possible to
encourage Russia to give them their views on ways you create a stable investment environment, so that the investment dollars
are brought to bear on the Russian natural resources. Russia has enormous natural resources. Unfortunately, they are located
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in some very difficult places, which means they will be high-cost. So they will be on the higher-end cost of the next -- in terms
of supply. But I think in terms of U.S. energy security, our interest would be to promote Russia developing those natural
resources. Because again, they will go into this global pool of supply, and someone will determine, this is the right increment
of barrel for me to buy, and it's from Russia; it fits my needs. And that means a barrel someplace else is available to go to
some other country. So that's the way the global supply market works. And to the extent we can get more barrels put into it,
that's good for U.S. energy security.” [Council on Foreign Relations, 3/9/07]
2008: Rex Tillerson: “Russia ‘Must Improve The Functioning Of Its Judicial System And Its Judiciary. There Is No
Respect For The Rule Of Law In Russia Today.’” According to the New York Times, “Rex Tillerson, chairman and chief
executive of Exxon Mobil, stressed that Russia ‘'must improve the functioning of its judicial system and its judiciary. There is
no respect for the rule of law in Russia today.'’ In both cases, differences stretch back beyond the past decade of prosperity to
the 1990s. In the West today, some paint Russia as newly defiant of NATO expansion, ignoring that Russia in the 1990s was
equally defiant but too weak to be convincing.” [New York Times, 6/9/08]
2012: Rex Tillerson Praised Putin’s Announcement Eliminated Export Tax And Lowering The Mineral Extraction
Tax Encouraging Offshore Oil Drilling Investment In Russia. According to Fair Disclosure, “In addition, President-
Elect Putin recently announced fiscal terms to encourage the offshore development in Russia. These improved terms eliminate
the export tax and lower the mineral extraction tax. These terms would be stable for 15 years from the commencement of
commercial production. Our agreement also provides ExxonMobil and Rosneft the opportunity to strengthen our global
partnership beyond Russia. Our Strategic Cooperation Agreement has provided Rosneft with an opportunity to gain equity
interest in a number of ExxonMobil opportunities in North America and other regions of the world.” [Fair Disclosure,
4/18/12]
Relationship with Russian State-Owned Oil Compay, Rosneft
2011: Rex Tillerson Called Exxonmobil’s Decades Of Work With Rosneft As A “Successful Relationship.” According
to The International Herald Tribune, “The flurry of deals this month suggest a new opening, particularly for working offshore
- luring companies that for the time being at least have been blocked from work in the United States. Exxon’s chief, Rex W.
Tillerson, who cut his teeth in Russian oil as a manager of the Sakhalin I development in the Pacific Ocean, praised his
company’s decades of work with Rosneft on Thursday as a ‘successful relationship.’ Before the deals with BP and Exxon,
Rosneft agreed with Chevron in June to explore another portion of the Black Sea. Rosneft’s deal-making flurry emerged from
necessity, said Valery Nesterov, an oil and gas analyst at Troika Dialog, an investment bank in Moscow. During the period of
resource nationalism in Russia, Rosneft was granted by law exclusive rights to potentially rich offshore deposits. But it lacked
the technology to develop them.” [The International Herald Tribune, 1/28/11]
Rex Tillerson: Deals With Rosneft “Open New Co-Operation Between Exxon And Rosneft Both In Russia And
Abroad.” According to the Daily Telegraph, “‘New horizons are opening up. One of the world’s leading companies,
ExxonMobil, is starting to work on Russia’s strategic shelf and deepwater continental shelf,’ Mr Putin said. Exxon chief Rex
Tillerson said the deal would ‘open new co-operation between Exxon and Rosneft both in Russia and abroad’.” [Daily
Telegraph, 8/31/11]
Rex Tillerson Said The ExxonMobil-Rosneft Deal “Combines The Strengths Of Our Two Companies.” According to
Platts Oilgram News, “Tillerson said Western Siberia represented a good opportunity for ExxonMobil and Rosneft. ‘This
agreement combines the strengths of our two companies,’ Tillerson said. ‘ExxonMobil has technology leadership in tight oil
and unconventional resource development and Rosneft brings direct knowledge and experience of Western Siberia’s geology
and conventional production.’” [Platts Oilgram News, 6/18/12]
2012: Rex Tillerson Broadly Endorsed Russian National Oil Company, Rosneft, And Said Rosneft’s Participation In
Partnerships In The United States Was Valuable To The US-Russia Relationship Generally. According to Fair
Disclosure, “REX TILLERSON: What I would tell you, though, is there is broad participation in the Gulf of Mexico today by
international companies, national companies, international independent oil companies, as there is onshore and in Canada. And
I think this is an important first step for Rosneft. To have a company -- a Russian company of their size and significance to
take a meaningful participation here in the United States, I think, is an very important step. From the standpoint of Rosneft as
a company, to broaden their footprint globally, become better known globally. And I also think it cannot be anything but
helpful to broadening the relationship between the American people and the Russian people. As I have said many times
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around the world when I speak to countries and governments, and I said this publicly -- the way to build strong country
government-to-government relationships is to build strong economic ties between our people. When we have strong business
ties, strong commercial ties, economic ties, where there is a certain codependency, that is positive for the overall relationship.
So I think it can only be viewed as a very positive step.” [Fair Disclosure, 4/18/12]
Tillerson Hoped Deals With Rosneft Would Lead To Closer Ties Between The Governments And People Of The
Two Countries. According to CNN, “Tillerson himself seemed hopeful that the Exxon deal could lead to even closer ties
between the two countries. ‘It cannot be anything but helpful to broadening the relationship between the American people
and the Russian people,’ Tillerson said at the time.” [CNN, 12/11/16]
2013: Rex Tillerson Said That Exxonmobil Planned To Expand Its Oil Exploration Activities Into New Areas,
Particularly In Russia. According to RIA Novosti, “According to the head of Rex Tillerson, the new projects should ensure
that the increase in production by 1 million barrels in the next few years. The company plans to launch about 28 new oil and
gas projects, 24 of which are associated with the production of liquid hydrocarbons. In the next three years the company plans
to launch 22 major projects, including projects in Canada and Papua New Guinea. Also Tillerson said the company has a
growing portfolio of opportunities in countries such as Romania and Tanzania. At the same time ExxonMobil is going to
expand its exploration activities in new areas, particularly in Russia.” [RIA Novosti, 3/6/13]
2013: Rex Tillerson Said ExxonMobil Was Investing In Russia Heavily. According to Russian Natural Gas Industry,
“ExxonMobil "is investing in Russia heavily, and these agreements are the basis of our projects and future collaboration, - said
R. Tillerson. - We know from experience that a good base - a defining factor for success, both in the Arctic and in any other
region. Our joint project with "Rosneft" - "Sakhalin-1" - an example of how our experience this has been applied in practice
".In addition, June 11, 2013," Rosneft "and" ExxonMobil "signed a final agreement on the establishment of the Russian Arctic
research and design Centre (Arctic Centre) and an agreement on joint use of technologies in different regions of the world.
"ExxonMobil" will finance the initial phase of research of the Arctic Centre in the amount of US $ 200 million.. The next $
250 million. for the continuation of joint research will be equal shares listed companies "Rosneft" and "ExxonMobil" shares of
partner involvement:.. "Rosneft" - 66.67%, and "ExxonMobil" - 33.33%” [Russian Natural Gas Industry, 6/24/13]
In 2013, Tillerson And Sechin Announced The Signing Of A Strategic Cooperation Agreement To Advance Exxon
And Rosneft Cooperation In The “Arctic Shelf And Deep Water Areas Of The Black Sea,” “Oil In West Siberia,”
And “A Promising LNG Project In The Russian Far East.” According to Business Wire, “Agreements were signed today
at the St. Petersburg International Economic Forum by Igor I. Sechin, Rosneft president and chairman of the Management
Board, and Rex W. Tillerson, chairman and CEO of Exxon Mobil Corporation. Commenting on the agreements signed, Igor
Sechin said, ‘I am glad to note the activities outlined in the Strategic Cooperation Agreement are being implemented ahead of
schedule. I would like to thank the teams from both companies for their hard and coordinated work. Our cooperation touches
upon the most promising aspects of today’s oil and gas industry: Arctic shelf and deep water areas in the Black Sea covering a
total area of 773,000 square kilometers, tight oil in West Siberia as well as a promising LNG project in the Russian Far East.
We are convinced that implementation of all these projects will benefit both companies’ shareholders. We believe it will also
boost the development of the Russian oil and gas industry and will have a multiplying effect on related industries, already
creating market demand for equipment, knowledge and technologies.’ ‘ExxonMobil is making a significant investment in
Russia, and these agreements serve as the foundation for our projects and future work together,’ Tillerson said. ‘Experience
tells us that a good foundation is critical for success in the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with
Rosneft is an example where we have put this experience to work.’” [Business Wire, 6/21/13]
PUTIN PRAISED COOPERATION BETWEEN EXXON AND ROSNEFT
Putin Touted Rosneft’s Ability To Work In The U.S. As A Result Of Agreements With Tillerson And Exxon.
According to AK & M Online News, “Russian Prime Minister Vladimir Putin said that direct investments, as I looked for
Reference, can range from $ 200 to 300 billion, but when you consider the cost of arrangement of the territory, infrastructure,
construction of the necessary facilities, the figure could reach up to 500 billion. Putin recalled that ExxonMobil works on the
shelf for nearly 50 years and has unique technologies. "For a company Rosneft is a good prospect. I mean, it reached an
agreement with you, Mr President, with your colleagues that Rosneft will be able to work on your areas, including in the
territory of the United States of America, the Gulf of Mexico, Texas, and take part in a number of joint projects in third
countries (but this is a matter of bilateral relations between the two companies), "- said the head of government. Putin
promised that the government will do its utmost to facilitate your successful work.” [AK & M Online News, 8/31/11]
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Putin On ExxonMobil: “It’s Very Nice That Rosneft Has Such A Reliable, Good Strategic Partner.” According to the
Times, “In a $3.2 billion deal that re-drew global energy politics, BP’s American rival agreed to help Rosneft to explore the
same blocks in the Arctic that BP had coveted in an Anglo-Russian tie-up that fell apart three months ago. In return, Rosneft
is set to become the first major Russian oil company to produce oil in the United States when it is granted stakes in Exxon
Mobil’s exploration projects in the Gulf of Mexico and Texas. Rex Tillerson, Exxon’s chief executive, travelled to Vladimir
Putin’s summer residence on the Black Sea to sign the deal in an official ceremony. The Russian Prime Minister took a
sideswipe at BP, whose proposed alliance with Rosneft was left in tatters in May after its existing partners in Russia blocked
the deal. ‘It’s very nice that Rosneft has such a reliable, good strategic partner,’ he said.” [Times, 8/31/11]
SAKHALIN -1
Washington Times: “Exxon Regularly Pitches Its Groundbreaking Sakhalin Island Liquefied Natural Gas Drilling
Project In Russia's Far East As One Of Its Greatest Accomplishments.” According to the Washington Times, “In
contrast to BP, Exxon Mobil - the American company most heavily invested in Russia - last week deflected questions from
worried investors about the possible impact of tightening sanctions on its vast operations in Siberia. Exxon regularly pitches its
groundbreaking Sakhalin Island liquefied natural gas drilling project in Russia's Far East as one of its greatest
accomplishments. In helping Russia tap into its remote Far Eastern offshore reserves under the harshest of Arctic conditions,
Exxon has played a pivotal role in helping Russia exploit its potential as an energy giant. Among other things, the
infrastructure put into the Sakhalin project laid the groundwork for funneling more of Russia's oil and gas to China, Japan and
other lucrative Asian markets, making Russia less dependent on Europe as a market for its fuel.” [Washington Times,
8/12/14]
Tillerson Led Talks with the Russian Government and Rosneft to Develop Oil and Gas Fields Off
Sakhalin Island
Rex Tillerson Led Exxon’s Drilling Operations Off The Coast Of Russia’s Sakhalin Island Before Becoming CEO.
According to the Dallas Morning News, “Exxon and Rosneft have been working together for years on their most challenging
project, drilling off the coast of Sakhalin Island. Exxon chief executive Rex Tillerson led the company’s Russian operations,
including the Rosneft project, before moving to the corner office in Irving. ‘They kind of cut their teeth on the Sakhalin
project,’ SMU’s Bullock said. He added that the Rosneft deal is another example of how Tillerson ‘has significantly moved the
company forward in his tenure.’” [Dallas Morning News, 8/31/11]
Rex Tillerson Led Talks In The 1990s With The Russian Government To Develop Oil And Gas Fields Off Russia’s
Sakhalin Island. According to Daily Deal/The Deal, “Tillerson’s ties to Russia go way back: In the 1990s he was praised as a
skilled dealmaker when he led talks with the Russian government to develop oil and gas fields off Sakhalin Island. While
Exxon Mobil has faced the same bureaucratic difficulties with Sakhalin that competitors have had with their Russian investments,
Exxon Mobil has been successful at producing oil there. That success, along with the joint venture with Rosneft, was
the key reason Tillerson won the top job in 2006.” [Daily Deal/The Deal, 9/18/11]
1990s: Rex Tillerson Led The Talks With The Russian Government To Develop The Oil Fields Off Sakhalin Island.
According to the Sunday Telegraph, “It was Tillerson who, in the 1990s, led the talks with the Russian government to develop
the fields off Sakhalin and whose negotiating skills are credited with clinching the deal. Tillerson will need those skills and
more to lead Exxon over the next few years. Although the industry is enjoying record oil prices - which helped to power
Exxon's profits to a record $36.1bn (pounds 19.2bn) last year - the benign operating environment is not without its
challenges.” [Sunday Telegraph, 8/27/06]
Rex Tillerson’s Negotiating Skills Are Credited With Clinching The Sakhalin Island Deal. According to the
Sunday Telegraph, “It was Tillerson who, in the 1990s, led the talks with the Russian government to develop the fields
off Sakhalin and whose negotiating skills are credited with clinching the deal. Tillerson will need those skills and more
to lead Exxon over the next few years. Although the industry is enjoying record oil prices - which helped to power
Exxon's profits to a record $36.1bn (pounds 19.2bn) last year - the benign operating environment is not without its
challenges.” [Sunday Telegraph, 8/27/06]
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Exxon Finalized The Sakhalin-I Project In Russia In 1996. According to Private Empire: ExxonMobil and American Power,
“It was not until 1996 that ExxonMobil closed on terms for what became known as the Sakhalin- I project. It was an
undertaking that would test the corporation’s engineering prowess like no other. Hurricane winds swept the Sakhalin region
each autumn, and ice packs up to six feet thick built up during the winter. After the spring, melting ice floes threatened to
knock down any offshore oil rig in their way. Exxon decided on a plan to drill a seven-mile horizontal well from mainland
Russia underneath the ocean waters. It was the only well of its kind in the world. Sakhalin-I suggested some of the appeal of
Western oil technology and engineering skill to Russia. But to make the deal on terms acceptable to Exxon, Russia’s
government had had to set aside its nationalism and share oil ownership.” [Private Empire: ExxonMobil and American Power,
pg. 256, 2012]
2001: Rex Tillerson Made A Deal With The Russian Government To Allow ExxonMobil Project Off Of Sakhalin
Island. According to the Dallas Morning News, “Mr. Tillerson, who also was not interviewed, cut a deal with the Russian
government in 2001 to allow the giant production project off of Sakhalin Island. Observers say experience negotiating with the
Russians is key for the chief executive as Russia's importance in the energy world increases. ‘Working with Russian
bureaucracy is never very smooth,’ said Eugene Lawson, president of the U.S.-Russia Business Council. ‘He was able to do a
straight zigzag through a minefield.’ Mr. Tillerson, who is a board member of the business council, won the Russians over
through his honesty and consistency, Mr. Lawson said.” [Dallas Morning News, 12/25/05]
In 2002, Tillerson Announce A $140 Million Contract With A Russian Shipyard To Upgrade The Sakhalin Project.
According to Private Empire: ExxonMobil and American Power, “President Bush had scheduled a visit to Moscow for May 2002 to
meet with Putin and follow up on energy diplomacy, among other subjects. The administration hoped at this Moscow summit
to announce new agreements between ExxonMobil and Russian oil companies, as well as between Chevron and Russian firms.
They would not be large deals, but the announcements would display momentum. Tillerson rehearsed for negotiations with
Putin, role-playing with a colleague. 10 On the eve of Bush’s arrival in Moscow, Tillerson announced a $140 million contract
with a Russian shipyard to upgrade one of ExxonMobil’s Sakhalin production platforms. Don Evans attended the contractsigning
ceremony in May and declared that direct U.S. investment in the Russian oil industry would soon be increasing. A joint
statement issued by Putin and Bush called out the ‘successful advancement of the Sakhalin- I project’ and drew similar
attention to a Chevron pipeline agreement.” [Private Empire: ExxonMobil and American Power, pg. 258, 2012]
Sakhalin-1’s Three Fields Began Producing Oil And Gas In 2005, 2010, And 2015. According to Business Wire, “Exxon
Mobil Corporation (NYSE:XOM) announced today that production has begun at the Sakhalin-1 project’s Arkutun-Dagi field
– the last of the three fields to be developed. Peak daily production from the field is expected to reach 90,000 barrels. The
field, located off the northeast coast of Sakhalin Island in the Russian Far East, will bring total daily production at Sakhalin-1
to more than 200,000 barrels. The other two fields – Chayvo and Odoptu – began production in 2005 and 2010, respectively.
Production from Sakhalin-1’s Arkutun-Dagi field will be routed through the existing Chayvo onshore processing facility on
Sakhalin Island and delivered through pipelines to the De-Kastri oil export terminal located in Khabarovsk Krai, Russia.
Exxon Neftegas Ltd. is the Sakhalin-1 Consortium operator with 30 percent interest. Coventurers include Sakhalin Oil and
Gas Development Co. Ltd., with 30 percent interest, and affiliates of Rosneft, the Russian state-owned oil company, RN-Astra
with 8.5 percent, Sakhalinmorneftegas-Shelf, with 11.5 percent, and ONGC Videsh Ltd. with 20 percent.” [Business Wire,
1/19/15]
Sakhalin-1 Benefited the Russian Federation to the Tune of Billions of Dollars
By 2010, The Russian State Received $2.6 Billion In Royalties From The Sakhalin-1 Project. According to Business
Wire, “The Sakhalin-1 Project includes the phased development of the Chayvo, Odoptu and Arkuntun-Dagi fields, with an
estimated total resource of 2.3 billion barrels (307 million tons) of oil and 17 trillion cubic feet (485 billion cubic meters) of
natural gas. The Chayvo field, which was the initial phase of the Sakhalin-1 Project, began production in 2006. Since startup,
the Sakhalin-1 Project has produced over 240 million barrels (32 million tons) of oil for export to world markets. It also has
been a key supplier of nearly 180 billion cubic feet (over 5 billion cubic meters) of associated natural gas to customers in
Khabarovsk Krai, in far eastern Russia, to heat homes and meet growing energy needs. The project will continue to help meet
future natural gas demand in this region. Since the start of the Sakhalin-1 Project, the Russian State has received US$2.6 billion
in royalties and its share of oil and gas, and the Sakhalin Oblast has received nearly US$650 million in production bonuses.
The Sakhalin-1 Consortium includes ENL (30 percent interest); Sakhalin Oil and Gas Development Co. Ltd., (30 percent);
affiliates of Rosneft, the Russian state-owned oil company, RN-Astra (8.5 percent), Sakhalinmorneftegas-Shelf (11.5 percent);
and ONGC Videsh Ltd. (20 percent).” [Business Wire, 1/20/10]
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Exxon’s Sakhalin-1 Project Had An Estimated Direct Benefit To The Russian Federation Of Approximately $25
Billion As Of April 2012. According to Fair Disclosure, “Sakhalin-1 project in Russia is example of type of investments
needed to expand energy supplies critical to advancing economies and raising living standards. 3. Sakhalin-1, one of the largest
foreign investments in Russia, delivered significant value to Russia and global economy. 1. Total estimated direct benefit todate
to Russian Federation is approx. $25b. 3. XOM and Rosneft along with co-ventures have worked together for more than
15 years in area characterized by remoteness and climate conditions that many believe would preclude successful exploration
and production.” [Fair Disclosure, 4/18/12]
In 2015, Exxon Filed a Complaint Over Tax Payments Made to Russia
2015: Exxon Mobil filed a complaint over $500 million in over paid profit taxes to Russia. According to ITAR-TASS,
“American Exxon Mobil informed the Russian Energy Ministry on Monday, March 30 about lodging a claim to the Stockholm
arbitration requiring changing the interpretation of the Sakhalin-1 project Production-Sharing Agreement (PSA) paragraph on
taxes, Vedomosti newspaper reported Wednesday citing Russian Energy Minister Alexander Novak. ExxonMobil believes its
subsidiary Exxon Neftegas Limited overpaid approximately $500 mln profit taxes on its Sakhalin-1 oil and gas project.”
[ITAR-TASS, 4/2/15]
Russia Cut The Value Added Tax (VAT) From 35% To 20%, But Exxon Continued To Pay The 35% VAT.
According to Natural Gas World, “Russia’s Energy Ministry confirmed the news on Thursday, but did not provide details of
the lawsuit. According to previous declarations, the American company says it overpaid $500 million in value added tax
(VAT). Russian authorities cut the tax from 35% to 20% in 2008, but Exxon Mobil and other partners in the project
continued to pay a 35% VAT.” [Natural Gas World, 4/2/15]
Exxon Mobil Argued It Did Not Need To Pay The 35% Tax That Was In Place At The Time The Original
Deal Was Set, But Should Pay The 20% Rate Set By Russia In 2009. According to ITAR-TASS, “At the time of
the PSA signing in the mid-1990s profit tax of 35% was imposed in Russia. Russia reduced the profit tax in 2009 to
20%, but ExxonMobil continued to pay at the earlier level of 35%, although it applies to the Finance Ministry with a
request to lower the rate. According to the newspaper, Russia believes that PSA terms are not subject to change
within its period of validity.” [ITAR-TASS, 4/2/15]
In 2016, Tillerson Met With Russia’s Energy Minister to Discuss Enhancing the Sakhalin-1 Project
2016: Rex Tillerson Met With Russian Energy Minister Alexander Novak To Discuss Ways To Speed Up The
Sakhalin-1 Project. According to ITAR-TASS, “Russia's Energy Minister Alexander Novak and ExxonMobil CEO Rex
Tillerson have discussed ways to speed up the process of making decisions on sales of gas from the Sakhalin 1 project. ‘It is
necessary to take the decision regarding monetization of gas as soon as possible,’ he said on the sidelines of the St. Petersburg
International Economic Forum (SPIEF-2016) on Friday. According to Novak, currently three options of monetization of gas
from the Sakhalin 1 project are being discussed - via the Far Eastern LNG, sales to China or Sakhalin Energy.” [ITAR-TASS,
6/17/16]
BLACK SEA
In 2011, Tillerson Orchestrated Deal with Rosneft that Boosted the State-Owned Company’s Value by $7
Billion
2011: ExxonMobil Signed A Deal With The Russian State Oil Company, Rosneft, To Explore Offshore Oil In The
Black Sea. According to The New York Times, “On Thursday, Exxon Mobil, America’s largest oil company, signed a deal
with the Russian state oil company, Rosneft, to explore offshore in the Black Sea. That came just two weeks after BP agreed to
a share swap with Rosneft to form a joint venture to explore off the country’s ice-bound northern coast.” [The New York
Times, 1/28/11]
Igor Sechin And Chairman Of Rosneft Hailed The Deal As A “Giant Leap Forward… More Ambitious Than Man's
First Walk In Space Or Sending A Man To The Moon.” According to CNN, “Tillerson's biggest deal in Russia was
announced in 2011 with Rosneft. The companies were focused on drilling for oil in three key Russian regions: the Arctic, the
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deepwaters of the Black Sea, and Siberia. In 2012, Igor Sechin, a close ally of Putin and chairman of Rosneft, hailed the
partnership as a ‘giant leap forward’ and argued it's ‘more ambitious than man's first walk in space or sending a man to the
moon.’” [CNN, 12/11/16]
Tillerson’s Deal Was A Great Benefit To Russia With The Valuation Of Rosneft Soaring By $7 Billion The Five
Days After Its Completion. According to CNN, “The Exxon deal meant a great deal to Russia. Sechin, who was also then
the deputy prime minister of Russia, bragged that after the Exxon agreement was signed, the valuation of Rosneft soared by $7
billion in just five days.” [CNN, 12/11/16]
2011: As Part Of Their $1 Billion Deal, ExxonMobil And Rosneft Agreed To Share In The Profits Of Any Oil
Discovered. According to The New York Times, “The Exxon-Rosneft agreement commits Exxon to spend about
$1 billion looking for oil off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is discovered.
But Russian authorities have reneged on deals with Exxon in the past. Desperate for investments when oil prices sank
in the 1990s, Russia agreed to give Exxon generous terms that exempted it from most taxes and allowed it to sell
much of the oil it prospected. But in recent years, local authorities have interfered in operations. In the early 2000s,
Exxon was intent on acquiring a large stake in Yukos, once Russia’s largest private oil company. But those efforts fell
apart in 2003 when the Kremlin arrested Yukos’s main shareholder, Mikhail B. Khodorkovsky, in what has been
viewed as a politically motivated effort to transfer Yukos assets to the state oil company, Rosneft.” [New York Times,
1/28/11]
2011: Under Rex Tillerson, ExxonMobil Reached An Agreement With State-Run Russian Oil Company Rosneft To
Develop Hydrocarbon Resources In The Black Sea. According to Russian Oil Refining Industry, “OJSC "NK" Rosneft
"company, and ExxonMobil have reached an agreement on joint development of hydrocarbon resources of the Russian shelf
of the Black Sea. […] Chairman of the Board of Directors, ExxonMobil CEO Rex Tillerson, who was also present at the
signing ceremony, said that his company is "pleased to be able to expand cooperation with" Rosneft "for the benefit of the
development of Russia's energy sector.’ ‘Of ExxonMobil will complement the existing company ‘Rosneft’ advantages and
experience in this region, bringing to the project its technological leadership, high quality jobs and new technologies’, - said R.
Tillerson. - We already have a successful experience of cooperation with "Rosneft" in the "Sakhalin-1" project. We intend to
expand these relations in order to meet the Russian and the whole Black Sea region's energy needs.’” [Russian Oil Refining
Industry, 1/27/11]
2011: Rex Tillerson On Rosneft-ExxonMobil Black Sea Deal: “We Will Build On The Successful Relationship We
Have With Rosneft Through The Sakhalin 1 Project To Help Meet Energy Needs In Russia And The Wider Black
Sea Area.” According to Platts Oilgram News, “The ExxonMobil deal, which was signed by Rosneft President Eduard
Khudainatov and ExxonMobil Development Company President Neil Duffin during the World Economic Forum in Davos,
Switzerland, goes beyond just exploration in the Black Sea. […] ExxonMobil Chairman and CEO Rex Tillerson, who also
attended the ceremony, said his company welcomed the opportunity to expand its activities with Rosneft for the benefit of
Russian energy development. ‘ExxonMobil will bring its technology, project execution capabilities and innovation to
complement Rosneft’s strengths and experience in the region,’ Tillerson said. ‘We will build on the successful relationship we
have with Rosneft through the Sakhalin 1 project to help meet energy needs in Russia and the wider Black Sea area.’” [Platts
Oilgram News, 1/28/11]
2011: Rex Tillerson On Rosneft-ExxonMobil Black Sea Deal: “ExxonMobil Will Bring Its Technology, Project
Execution Capabilities And Innovation To Complement Rosneft’s Strengths And Experience In The Region.”
According to Platts Oilgram News, “The ExxonMobil deal, which was signed by Rosneft President Eduard Khudainatov and
ExxonMobil Development Company President Neil Duffin during the World Economic Forum in Davos, Switzerland, goes
beyond just exploration in the Black Sea. […] ExxonMobil Chairman and CEO Rex Tillerson, who also attended the
ceremony, said his company welcomed the opportunity to expand its activities with Rosneft for the benefit of Russian energy
development. ‘ExxonMobil will bring its technology, project execution capabilities and innovation to complement Rosneft’s
strengths and experience in the region,’ Tillerson said. ‘We will build on the successful relationship we have with Rosneft
through the Sakhalin 1 project to help meet energy needs in Russia and the wider Black Sea area.’” [Platts Oilgram News,
1/28/11]
Drilling in the Black Sea was Projected to Begin in 2014
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Exxon And Rosneft Announced Plans To Begin Drilling Operations In The Kara And Black Seas In 2014. According
to Business Wire, “Rosneft and ExxonMobil today announced the achievement of several milestones under their 2011
Strategic Cooperation Agreement, including joint venture formation for the Kara Sea and Black Sea projects, and establishing
foundations for joint ventures to explore seven other licenses in the Russian Arctic and to manage the joint West Siberia tight
oil project. The companies have also agreed to move to the next planning phase for an LNG development in the Russian Far
East. The Black Sea and Kara Sea joint venture operating companies, Tuapsemorneftegaz SARL and Karmorneftegaz SARL
respectively, will commence project implementation activities as operator pursuant to agreement with Rosneft, which is the
license holder. Rosneft holds 66.67 percent interest and ExxonMobil holds 33.33 percent interest in the two projects. The
initial cost of exploration in the two areas is estimated at more than US $3.2 billion, the majority of which will be financed by
ExxonMobil. In 2013 collection of data for both regions will continue until the commencement of drilling operations in the
Kara and Black seas in 2014.” [Business Wire, 6/21/13]
RUSSIAN ARCTIC
In 2011, Tillerson Orchestrated Deal with Rosneft to Explore and Develop the Kara Sea in Russia; The
Plan Was Highly Touted by Vladimir Putin and Considered a “Pet Project” of Putin’s
2011: Under Rex Tillerson, Exxonmobil And State-Run Russian Oil Company Rosneft Agreed On A Plan For The
Joint Development Of The Arctic And Other Regions Of The Russian Shelf. According to RIA Novosti, “‘Rosneft’ and
ExxonMobil on Tuesday agreed on joint development of the Arctic and other regions of the Russian shelf. The authorities
noted that the Americans have offered better conditions than the British BP, which deal fell through in early summer, and
experts have stated that the company plans to bring each other to a new level of international cooperation. […] Prime Minister
Vladimir Putin said that ‘Rosneft’ and ExxonMobil will invest in exploration in the Kara and Black Seas for $ 3.2 billion.”
[RIA Novosti, 8/30/11]
Putin Was In Attendance At The Signing Ceremony. According to AK & M Online News, “OJSC "NK" Rosneft
"and ExxonMobil entered into a strategic cooperation agreement, under which the companies plan to jointly
implement a number of projects in the field of exploration and development of hydrocarbon deposits in Russia, the
USA and other countries around the world are beginning to work on technologies and exchange of experience. This
Rosneft said in a statement. The agreement, signed by the president of "Rosneft" Eduard Khudainatov and
ExxonMobil Development Company President Neil Duffin in the presence of the head of the Russian Federation
Vladimir Putin, involves investment of about $ 3.2 billion in exploration and development of three license areas - East
Prinovozemelsky -1, -2, -3 in the Kara sea and the Tuapse license block in the Black sea, one of the most promising
and least explored offshore areas of the world. […] Chairman of the Board and President of Exxon Mobil
Corporation Rex Tillerson, who took part in the signing ceremony, said that thanks to the close cooperation with
"Rosneft", of ExxonMobil will make a valuable contribution to the development of the Russian energy sector. "Such a
large-scale partnership represents a significant strategic step for both companies," he added.” [AK & M Online News,
8/31/11]
Rex Tillerson On Black and Kara Sea Deals with Rosneft: “This Agreement Takes Our Relationship To A New
Level And Will Create Substantial Value For Both Companies.” According to Daily Deal/The Deal, “Exxon Mobil Corp.
and Russia’s OAORosneft on Tuesday, Aug. 30, signed a strategic agreement and unveiled plans to invest an initial $3.2 billion
in an exploration joint venture that will prospect for crude oil in Russia’s Kara and Black seas. […] Exxon chief executive Rex
Tillerson said in a statement. ‘This agreement takes our relationship to a new level and will create substantial value for both
companies.’ Russia’s prime minister, Vladimir Putin, who was present at the signing of the deal in Sochi, a resort town on the
coast of the Black Sea, said that the partners might eventually invest as much as $500 billion to develop the oilfields. Exxon
and Rosneft are not strangers to each other. They have worked together for the past 15 years to develop the Sakhalin-1 project
in Russia’s North Pacific territory, which is 30% owned by Exxon and 20% by Rosneft-controlled companies.” [Daily
Deal/The Deal, 8/30/11]
2011: As Part Of Their $1 Billion Deal, ExxonMobil And Rosneft Agreed To Share In The Profits Of Any Oil
Discovered. According to The New York Times, “The Exxon-Rosneft agreement commits Exxon to spend about $1 billion
looking for oil off Russia’s Black Sea coast, and holds the promise of sharing in the prize if it is discovered. But Russian
authorities have reneged on deals with Exxon in the past. Desperate for investments when oil prices sank in the 1990s, Russia
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agreed to give Exxon generous terms that exempted it from most taxes and allowed it to sell much of the oil it prospected. But
in recent years, local authorities have interfered in operations. In the early 2000s, Exxon was intent on acquiring a large stake
in Yukos, once Russia’s largest private oil company. But those efforts fell apart in 2003 when the Kremlin arrested Yukos’s
main shareholder, Mikhail B. Khodorkovsky, in what has been viewed as a politically motivated effort to transfer Yukos assets
to the state oil company, Rosneft.” [The New York Times, 1/28/11]
Deal Went Through With Endorsement and Praise of Vladimir Putin
Exxon And Rosneft’s Joint Exploration Of Oil In The Kara Sea Was Called A “Pet Project Of Russian President
Vladimir Putin.” According to the Washington Times, “Under a joint venture with Rosneft, Russia's sanctioned oil company,
Exxon last month discovered what may be an oil field in the Kara Sea containing 750 million barrels. The venture is a pet
project of Russian President Vladimir Putin, who boasted about it and personally gave the go-ahead for the companies to start
drilling this summer.” [Washington Times, 10/1/14]
Before It Was Blocked By Sanctions, Vladimir Putin Called The Rosneft Deal “One Of The Most Important
Involving Russia And The U.S.,” Forecasting It Could Generate $500 Billion. According to the Wall Street Journal, “In
2011, Mr. Tillerson struck a deal giving Exxon access to prized Arctic resources in Russia as well as allowing Russia’s state oil
company, OAO Rosneft, to invest in Exxon concessions all over the world. The following year, the Kremlin bestowed the
country’s Order of Friendship decoration on Mr. Tillerson. The deal would have been transformative for Exxon. Mr. Putin at
the time called it one of the most important involving Russia and the U.S., forecasting that the partnership could eventually
spend $500 billion. But it was subsequently blocked by sanctions on Russia that the U.S. and its allies imposed two years ago
after the country’s invasion of Crimea and conflicts with Ukraine.” [Wall Street Journal, 12/6/16]
2011: Putin Touted Rosneft’s Ability To Work In The U.S. As A Result Of The Agreement. According to AK & M
Online News, “Russian Prime Minister Vladimir Putin said that direct investments, as I looked for Reference, can range from
$ 200 to 300 billion, but when you consider the cost of arrangement of the territory, infrastructure, construction of the
necessary facilities, the figure could reach up to 500 billion. Putin recalled that ExxonMobil works on the shelf for nearly 50
years and has unique technologies. "For a company Rosneft is a good prospect. I mean, it reached an agreement with you, Mr
President, with your colleagues that Rosneft will be able to work on your areas, including in the territory of the United States
of America, the Gulf of Mexico, Texas, and take part in a number of joint projects in third countries (but this is a matter of
bilateral relations between the two companies), "- said the head of government. Putin promised that the government will do its
utmost to facilitate your successful work.” [AK & M Online News, 8/31/11]
Rex Tillerson Said The ExxonMobil-Rosneft Deal “Combines The Strengths Of Our Two Companies.”
According to Platts Oilgram News, “Tillerson said Western Siberia represented a good opportunity for ExxonMobil
and Rosneft. ‘This agreement combines the strengths of our two companies,’ Tillerson said. ‘ExxonMobil has
technology leadership in tight oil and unconventional resource development and Rosneft brings direct knowledge and
experience of Western Siberia’s geology and conventional production.’” [Platts Oilgram News, 6/18/12]
Putin Said That The Total Investment From ExxonMobil And Rosneft In Joint Arctic Projects Could Reach 200 to
300 Billion Dollars. According to Kommersant via BBC Monitoring Former Soviet Union, “Prime Minister Vladimir Putin
yesterday put the total of direct investment in joint projects by Rosneft and ExxonMobil at 200-300 billion dollars, but ‘if we
are talking about infrastructure, the construction of the necessary buildings, and surface facilities, the investment could reach
500 billion dollars’. However, ExxonMobil expects its agreement with Rosneft to encourage the Russian authorities to ease the
tax regime for the industry. ‘Such steps will help the government to expand cooperation in the difficult situation that is taking
shape in Russia,’ the head of ExxonMobil, Rex Tillerson, explained.” [Kommersant via BBC Monitoring Former Soviet
Union, 9/2/11]
Rex Tillerson And Vladimir Putin Met In Sochi To Announce $3.2 Billion Investment By Exxon And Russia’s
Rosneft To Drill In The Arctic Kara Sea, With Possible Future Investment Reaching $500 Billion. According to Private
Empire: ExxonMobil and American Power, In Russia, later that summer, Rex Tillerson flew to the Black Sea resort of Sochi to
meet with Vladimir Putin. Before television cameras, the two men sat on opposite sides of a horseshoe-shaped table and
announced a new partnership between ExxonMobil and Rosneft, the Russian oil company. The oil firms agreed to
invest at least $3.2 billion to develop oil beneath the Arctic Kara Sea; if the deal survived the backtracking and disputes
that disrupted so many other Russian oil deals, the total investment in the project could reach $500 billion . The United
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States Geo­ logical Survey estimated that the Arctic held about 90 billion barrels of recoverable but undiscovered oil and
about as much natural gas as Russia’s onshore supplies, which were the world’s largest.” [Private Empire: ExxonMobil and
American Power, pg. 621, 2012]
Tillerson Worked to Develop Favorable Tax Structure For Exxon’s Deal with Rosneft
Rex Tillerson Received Assurances From The Russian Government That The Rosneft Deal Would Be Conducted
Under A Special Tax Regimen. According to Vedomosti via BBC Monitoring Former Soviet Union, “The first round of
negotiations between the companies had no result: Already in 2010, Exxon had refused participation in joint development of
the Arctic shelf, referring to the expense of the project. Yesterday at a meeting with Putin, the general director of the
American company, Rex Tillerson, received assurances to the effect that the project would be implemented in a special tax
regimen, explains a source close to Rosneft. Its parameters have not yet been defined, but Rosneft has proposals in this regard,
says a source close to the state holding.” [Vedomosti via BBC Monitoring Former Soviet Union, 9/2/11]
Rex Tillerson Said Putin’s Move To Abolish Duties And Reduce Mineral Extraction Taxes Led To ExxonMobil’s
Deal With Rosneft. According to Platts Oilgram News, “Tillerson said a recent decision by Russia’s President-elect Vladimir
Putin to provide a favorable fiscal regime for offshore reserves by abolishing export duty and reducing mineral extraction tax
supported the two companies’ ambitious plans to develop Russia’s offshore.” [Platts Oilgram News, 4/19/12]
Tillerson and Putin Attended Ceremonies Celebrating the Signing of a Feasibility Study and
Environmental Protection Agreement on Drilling in the Kara Sea
2012: Rex Tillerman And Vladimir Putin Attended The Signing Of A Contract For A Feasibility Study On Russian
Oil Drilling. According to Oil Refining Industry, “In assessing the design platform of paramount importance is the safety and
protection of Environment- Through this platform is expected to extend the season of drilling in the Arctic regione. Segodnya
company ‘Rosneft’ and ‘ExxonMobil’ announced the selection of JSC ‘Plant of marine structures’ Oriental ‘as a contractor to
assess the concepts of design choice and determine the main technical parameters and specifications for the development of a
feasibility study on the drilling platform for the safe and efficient execution of exploration in shallow waters of the Kara
morya. […] Contract for the study was signed today by the Chairman of the Board and the President of JSC ‘NC’ Rosneft
‘Igor Sechin, President of’ ExxonMobil Exploration Company ‘by Stephen M. Greenlee, and General Director of JSC’ Plant of
marine structures ‘East’ Alexei Kozhemyakovym in the presence of Russian President Vladimir Putin and Rex W. Tillerson,
Chairman and Chief executive of the Corporation ‘ExxonMobil.’” [Russian Oil Refining Industry, 9/7/12]
Rex Tillerson Announced ExxonMobil And Rosneft Planned To Start Exploratory Drilling In The Kara Sea In 2014-
15. According to ITAR-TASS, “VLADIVOSTOK ExxonMobil Corporation and Rosneft Company are planning to start
exploratory drilling on the shelf of Kara Sea in the 2014-’15 period, ExxonMobil chief Rex Tillerson announced here on
Thursday. Tillerson said the implementation of a program to obtain technical data on the Kara Sea is proceeding ahead of
schedule and is to be completed towards the end of the current month. The Corporation is planning to set about exploratory
drilling within the assigned period, he said. Exploratory drilling is also to be launched on the Black Sea shelf within the same
period, Tillerson added.” [ITAR-TASS, 9/7/12]
2012: Rex Tillerson Attended The Signing Of An Environmental Protection Agreement Between Exxon And Rosneft
Related To Operations In The Kara Sea. According to Russian Oil Refining Industry, “December 7, ‘Rosneft’ and the
corporation ‘ExxonMobil’ signed a declaration on environmental protection and the conservation of biological diversity in the
exploration and development of oil and gas resources of the Arctic continental shelf of the Russian Federatsii1. Deklaratsiya
was signed during the meeting between the President and Chairman of the Board of ‘Rosneft’ Igor Sechin and the President
and Chief Executive officer of the corporation ‘ExxonMobil’ Rex Tillerson in the presence of the top leaders of both
company. V Declaration includes a number of measures to preserve the ecosystem of the Arctic in the exploration and
development of oil and gas resources of the forces of ‘Rosneft’ and its partnerov.Kommentiruya signing, Sechin said: ‘Rosneft’
and ‘ExxonMobil’ are successfully cooperating for many years. I am grateful to Rex Tillerson for supporting this initiative
‘.Reks Tillerson said:’ We aim to reduce the impact on the environment wherever we operate, through continuous
improvement of technology and production processes. We support the initiative of ‘Rosneft’ and will work with its members
and other representatives of the industry to protect the environment Russian Arctic ‘.” [Russian Oil Refining Industry,
12/7/12]
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Exxon and Rosneft Agreed to Develop Joint Arctic Research Center in 2013
In 2013 2013 Rosneft And Exxon Signed An Agreement To Establish A Joint “Arctic Research Center” And
Technology Sharing Agreement Aimed At Developing And Sharing Technology For The Kara Sea. According to
Business Wire, “Rosneft and ExxonMobil today signed final agreements establishing a joint Arctic Research Center (ARC) in
Russia and an over-arching technology sharing agreement to support the companies’ joint ventures worldwide. Formally
named the Arctic Research and Design Center for Continental Shelf Development, the ARC will provide the Rosneft and
ExxonMobil joint ventures a full range of research, development and technical services, with near-term focus on the Kara Sea.
Initial activities include work in the areas of safety and environmental protection; ice, metocean and geotechnical surveys; sea
ice management; development of design criteria; and the evaluation and design of development concepts. The ARC will build
on current best practices of Rosneft and ExxonMobil to develop technologies that are environmentally safe, and more
effective and efficient.” [Business Wire, 6/11/13]
Exxon Planned To Fund The Arctic Research Center With An Initial $450 Million Investment. According to
Business Wire, “ExxonMobil will provide $200 million in funding for the center’s initial research work and Rosneft
and ExxonMobil will equally fund the next $250 million to continue their joint research work. The partners’ interests
are Rosneft 66.67 percent and ExxonMobil 33.33 percent. ARC staff will be located with the Rosneft and
ExxonMobil joint venture teams in Moscow to promote resource efficiency and interaction between technical and
management staffs. The ARC initially will be staffed with experts from ExxonMobil and Rosneft. The agreements
were signed in Washington D.C. by Sechin and Ortwein, with Rex W. Tillerson, chairman and chief executive officer
of Exxon Mobil Corporation (NYSE:XOM), and other executives from both companies in attendance. As part of the
joint work between the companies, Rosneft and ExxonMobil management attended an exhibition at the National
Gallery of Art in Washington. The ‘Diaghilev and the Ballets Russes, 1909–1929: When Art Danced with Music’
exhibition was organized in collaboration with the Victoria and Albert Museum in London with major funding
provided by Rosneft and ExxonMobil.” [Business Wire, 6/11/13]
2013 to Expand Exploration Area in Russian Arctic
2013: Exxon And Rosneft Announced An Expansion Of 150 Million Acres Of Exploration Area In The Russian
Arctic And The Possible Participation Of Rosneft In The Point Thomsen Project In Alaska. According to Business
Wire, “Rosneft and ExxonMobil have agreed to expand their cooperation under their 2011 Strategic Cooperation Agreement
to include an additional approximately 600,000 square kilometers (150 million acres) of exploration acreage in the Russian
Arctic and potential participation by Rosneft (or its affiliate) in the Point Thomson project in Alaska. They have also agreed to
conduct a joint study on a potential LNG project in the Russian Far East. The agreements, which include plans to explore
seven new blocks in the Chukchi Sea, Laptev Sea and Kara Sea, were signed by Igor Sechin, president of Rosneft, and Stephen
Greenlee, president of ExxonMobil Exploration Company, in the presence of Russian President Vladimir Putin.” [Business
Wire, 2/13/13]
Exxon And Rosneft Agreed To Joint Operations In The Russian Arctic Including The Chukchi Sea And The
Laptev Sea. According to Business Wire, “The license blocks include Severo-Vrangelevsky-1, Severo-Vrangelevsky-2
and Yuzhno-Chukotsky blocks in Chukchi Sea, Ust’ Oleneksky, Ust’ Lensky and Anisinsko Novosibirsky blocks in
Laptev Sea and Severo Karsky block in Kara Sea, which are among the most promising and least explored offshore
areas globally. A separate Heads of Agreement was signed providing Rosneft (or its affiliate) an opportunity to acquire
a 25 percent interest in the Point Thomson Unit, which covers development of a remote natural gas and condensate
field on Alaska’s North Slope. It is estimated that Point Thomson contains approximately 25 percent of the known
gas resource base in Alaska’s North Slope.” [Business Wire, 2/13/13]
Exxon And Rosneft’s Joint Exploration Of The Russian Arctic Increased Nearly Six-Fold, Increasing The
Unprecedented Scale Of Agreements Between Exxon And The Russian Government-Owned Corporation.
According to Business Wire, “Commenting on the agreements signed, Igor Sechin said, ‘The agreements signed today
bring the already unprecedented scale of the Rosneft and ExxonMobil partnership up to a completely new level. The
acreage in the Russian Arctic subject to geological exploration and subsequent development increased nearly six-fold.
That means the enormous resource potential of Russian Arctic offshore fields will be explored and developed in the
most efficient manner with the application of cutting-edge technologies and expertise of our strategic partner,
ExxonMobil, and using state-of-the-art environmental protection systems. Participation in the Point Thomson project
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will increase Rosneft’s access to the latest gas and condensate field development technologies used in harsh climatic
conditions.’” [Business Wire, 2/13/13]
Drilling in the Kara Sea was Projected to Begin in 2014
Exxon And Rosneft Announced Plans To Begin Drilling Operations In The Kara And Black Seas In 2014. According
to Business Wire, “Rosneft and ExxonMobil today announced the achievement of several milestones under their 2011
Strategic Cooperation Agreement, including joint venture formation for the Kara Sea and Black Sea projects, and establishing
foundations for joint ventures to explore seven other licenses in the Russian Arctic and to manage the joint West Siberia tight
oil project. The companies have also agreed to move to the next planning phase for an LNG development in the Russian Far
East. The Black Sea and Kara Sea joint venture operating companies, Tuapsemorneftegaz SARL and Karmorneftegaz SARL
respectively, will commence project implementation activities as operator pursuant to agreement with Rosneft, which is the
license holder. Rosneft holds 66.67 percent interest and ExxonMobil holds 33.33 percent interest in the two projects. The
initial cost of exploration in the two areas is estimated at more than US $3.2 billion, the majority of which will be financed by
ExxonMobil. In 2013 collection of data for both regions will continue until the commencement of drilling operations in the
Kara and Black seas in 2014.” [Business Wire, 6/21/13]
Rex Tillerson Announced ExxonMobil And Rosneft Planned To Start Exploratory Drilling In The Kara Sea In 2014-
15. According to ITAR-TASS, “VLADIVOSTOK ExxonMobil Corporation and Rosneft Company are planning to start
exploratory drilling on the shelf of Kara Sea in the 2014-’15 period, ExxonMobil chief Rex Tillerson announced here on
Thursday. Tillerson said the implementation of a program to obtain technical data on the Kara Sea is proceeding ahead of
schedule and is to be completed towards the end of the current month. The Corporation is planning to set about exploratory
drilling within the assigned period, he said. Exploratory drilling is also to be launched on the Black Sea shelf within the same
period, Tillerson added.” [ITAR-TASS, 9/7/12]
Kara Sea Project Was Made More Plausible Due to Global Warming
Retreating Sea Ice Due To Global Warming Made The Prospect Of Drilling In The Kara Sea More Plausible.
According to Private Empire: ExxonMobil and American Power, “Most of the Arctic’s oil and gas is believed to lie in areas
controlled by Russia. In the Kara Sea, where ExxonMobil agreed to drill, oil development has become easier because of the
rapid retreat of Arctic sea ice, most likely due to global warming. In 2011, on a typical August day, the amount of Arctic sea ice
was about 40 percent less than had been present on an average August day between 1979 and 2000.34 At the announcement in
Sochi, Vladimir Putin spoke approvingly of ExxonMobil’s ‘unique technology’ and the corporation ‘s ability to operate in the
Arctic’s ‘difficult conditions.’ As to the scale of the investment planned, Putin added, ‘It’s scary to utter such huge figures.’”
[Private Empire: ExxonMobil and American Power, pg. 621, 2012]
WESTERN SIBERIA
In 2012, Tillerson And Putin Attended A Signing Ceremony Announcing An Exxon-Rosneft Agreement To Develop
“Tight Oil Reserves In Western Siberia And Establish A Joint Arctic Research Center For Offshore Developments.”
According to Business Wire, “Rosneft and ExxonMobil today signed agreements to jointly develop tight oil reserves in
Western Siberia and establish a joint Arctic Research Center for Offshore Developments. The agreements, which support
implementation of the companies’ August 2011 long-term strategic cooperation agreement, were signed by Rosneft President
Igor Sechin and Stephen M. Greenlee, president of ExxonMobil Exploration Company. Vladimir Putin, President of the
Russian Federation, Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation (NYSE:XOM), and
other top managers of the companies were present at the signing ceremony. Rosneft and ExxonMobil agreed to expand and
expedite joint efforts to develop oil reserves in tight low-permeability formations in Western Siberia using advanced
technologies that ExxonMobil has successfully employed in North America.” [Business Wire, 6/15/12]
Rex Tillerson Attended A Signing Ceremony For The Rosneft Deal At Vladimir Putin’s Residence.
According to the Globe And Mail, “The two companies will also seek to transfer know-how from those projects to
develop Rosneft’s vast reserves of tight oil trapped in non-porous rocks like shale at three of its biggest fields in
western Siberia. ‘Today really is a historic day ... it marks the beginning of a new and broader relationship between our
companies,’ Exxon CEO Rex Tillerson told a signing ceremony hosted by Russian Prime Minister Vladimir Putin at
his Novo-Ogaryovo residence outside Moscow.” [Globe And Mail, 4/17/12]
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Tillerson: “Exxonmobil Has Technology Leadership In Tight Oil And Unconventional Resource Development And
Rosneft Brings Direct Knowledge And Experience Of Western Siberia’s Geology And Conventional Production.”
According to Business Wire, “Tillerson said the Western Siberia area presents a good opportunity for ExxonMobil and
Rosneft. ‘This agreement combines the strengths of our two companies,’ said Tillerson. ‘ExxonMobil has technology
leadership in tight oil and unconventional resource development and Rosneft brings direct knowledge and experience of
Western Siberia’s geology and conventional production.’ The other agreement signed today will enable ExxonMobil to join the
new Arctic Research Center, which will provide a full range of services to support all stages of oil and gas development on the
Arctic shelf, including ice monitoring and management, design of ice resistant offshore vessels, structures and Arctic pipelines,
logistics and safety.” [Business Wire, 6/15/12]
NORTH AMERICA
In 2012, Tillerson and Putin Signed Long-Term Strategic Cooperation Agreements Allowing State-
Controlled Rosneft to Develop and Invest in Projects in the U.S. and Canada
Following 2011 Black And Kara Sea Deals, Exxon Planned To Allow Rosneft To Invest In Exxon Assets In The Gulf
Of Mexico And Texas, The First Time A State-Controlled Russian Oil Company Could Invest In U.S. Assets.
According to Daily Deal/The Deal, “Exxon Mobil and Russia’s OAO Rosneft unveiled plans to invest an initial $3.2 billion in
an exploration joint venture that will prospect for crude oil in Russia’s Kara and Black seas -- a deal BP had previously lined
up, only to be blocked by a group of Russian oligarchs. Rosneft also will have the opportunity to invest in the equity of Exxon
assets in the deepwater Gulf of Mexico and shale oilfields in Texas, which would be the first time a state-controlled Russian oil
company has had a chance to invest in U.S. oil and gas assets. The deal marked what one analyst called the ‘dawning of a new
era’ in terms of Russia pairing up with foreign majors to boost the country’s sagging oil output.” [Daily Deal/The Deal,
9/18/11]
2012: Rex Tillerson And Vladimir Putin Attended The Signing Of A Package Of Agreements That Allowed Russian
State-Run Oil Company Rosneft To Develop Projects In The U.S. And Canada. “Yesterday, in Novo-Ogaryovo in the
presence of Prime Minister Vladimir Putin presidency, ‘Rosneft’ and ExxonMobil Eduard Khudainatov and Rex Tillerson
signed a package of agreements on the second part of the transaction to create a strategic alliance. In August 2011, ‘Rosneft’
and ExxonMobil have agreed to jointly develop three areas Vostochnoprinovozemelskih now the Russian state company will
get in return projects in the US and Canada. ‘These agreements are designed for decades,’ - said the prime minister. Rex
Tillerson said that ‘negotiations are moving to a new horizon.’ ‘We have become global partners’, - he said.” [Kommersant
digest via AK&M News, 4/17/12]
Russian Owned Oil Company, Rosneft, And Exxon Announced A Long-Term Strategic Cooperation Agreement
Ushered In By Rex Tillerson In April 2012. According to Fair Disclosure, “On Monday, in a ceremony in Moscow,
attended by Russian Prime Minister and President-Elect Putin and other officials, Rosneft and ExxonMobil signed a series of
agreements to implement the long-term Strategic Cooperation Agreement that our companies announced last August.” [Fair
Disclosure, 4/18/12]
2012: Rex Tillerson Announced Cooperation Between Russia’s Rosneft And Exxon Including Partnerships In West
Texas And The Gulf Of Mexico. According to Fair Disclosure, “On Monday, Rosneft and ExxonMobil signed agreements
covering participation in several international as-sets. Rosneft has farmed into the Cardium tight oil play in the Harmattan area
northwest of Calgary, Alberta. The Cardium formation is an active unconventional oil play in which ExxonMobil has a
significant acreage position. Through this agreement, ExxonMobil assigned Rosneft working interest in over 56,000 net acres,
as well as an interest in the wells we have drilled to date. In West Texas, we will work together on another emerging tight oil
play in the Bone Spring formation, where Rosneft has acquired an equity interest in the La Escalera Ranch project in the
Delaware Basin. And finally, Rosneft will have the opportunity to acquire a 30% interest in 20 blocks held by ExxonMobil in
the deepwater western Gulf of Mexico. We will continue to work together on other assets and new opportunities that support
the relationship between Rosneft and ExxonMobil, and that will bring to global markets the en-ergy needed to help build a
healthier, more prosperous future for people the world over.” [Fair Disclosure, 4/18/12]
2012: Rex Tillerson Broadly Endorsed Russian National Oil Company, Rosneft, And Said Rosneft’s Participation In
Partnerships In The United States Was Valuable To The US-Russia Relationship Generally. According to Fair
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Disclosure, “REX TILLERSON: What I would tell you, though, is there is broad participation in the Gulf of Mexico today by
international companies, national companies, international independent oil companies, as there is onshore and in Canada. And
I think this is an important first step for Rosneft. To have a company -- a Russian company of their size and significance to
take a meaningful participation here in the United States, I think, is an very important step. From the standpoint of Rosneft as
a company, to broaden their footprint globally, become better known globally. And I also think it cannot be anything but
helpful to broadening the relationship between the American people and the Russian people. As I have said many times
around the world when I speak to countries and gov-ernments, and I said this publicly -- the way to build strong country
government-to-government relationships is to build strong economic ties between our people. When we have strong business
ties, strong commercial ties, economic ties, where there is a certain codependency, that is positive for the overall relationship.
So I think it can only be viewed as a very positive step.” [Fair Disclosure, 4/18/12]
Subsidiaries Of Russia’s State-Owned Oil Company Rosneft Held 30-Percent Stakes In ExxonMobil Projects In
Delaware, Texas, And Canada. According to ITAR-TASS, “Neftegaz Holding America, a subsidiary of Russia’s stateowned
oil company Rosneft registered in the State of Delaware, has signed a number of agreements on accession to
ExxonMobil’s projects in the United States. Neftegaz Holding America will acquire ExxonMobil’s 30-percent stake in the La
Escalera Ranch project in the Delaware oil and gas basin in West Texas, as well as ExxonMobil’s 30-percent stake in the Gulf
of Mexico. Rosneft’s another subsidiary, RN Cardium Oil, will get a 30-percent stake of ExxonMobil in the Harmattan acreage
in the Cardium formation of the Western Canada Basin in Alberta, Canada. The agreements were announced at the signing
ceremony for agreements be-tween Rosneft and ExxonMobil on Monday, April 16. The documents were signed by Rosneft
President Eduard Khudainatov and ExxonMobil CEO Rex Tillerson in the presence of Prime Minister Vladimir Putin on
Monday, April 16.” [ITAR-TASS, 4/16/12]
2013 Exxon and Rosneft Agreement Gave Rosneft 30% Interest in Gulf of Mexico Holdings
In 2013, Exxon And Rosneft Signed An Agreement Giving The Russian-Government Company A 30% Interest In
Deepwater Oil Blocks In The Gulf Of Mexico. According to Business Wire, “Neftegaz America Shelf LP (Neftegaz), an
indirect independent subsidiary of Rosneft, acquires 30 percent interest in 20 deepwater exploration blocks in the Gulf of
Mexico held by ExxonMobil, under an agreement signed by the two companies. The 20 blocks have a total area of
approximately 111,600 acres (450 square kilometers) in water depths ranging between 2,100 and 6,800 feet (640 and 2,070
meters). Seventeen are located in the Western Gulf of Mexico and three are in the Central Gulf of Mexico. ExxonMobil
retains 70 percent interest in the blocks and remains operator. Analysis of seismic data is under way. There is currently no
production on the blocks. Rosneft and ExxonMobil continue to implement the Strategic Cooperation Agreement signed in
2011, under which the companies and their subsidiaries plan to undertake joint exploration and development of hydrocarbon
resources in Russia and other countries and to share technology and expertise. Under subsequent agreements between
Neftegaz and ExxonMobil, Rosneft’s subsidiary gained the option to acquire interest in 20 blocks of its choosing from among
ExxonMobil’s Gulf of Mexico exploration portfolio. The latest agreement represents the exercise of that option. The
agreement was signed by Igor I. Sechin, president of Rosneft, and Stephen M. Greenlee, president of ExxonMobil Exploration
Company.” [Business Wire, 3/6/13]
2013 Exxon and Rosneft Agreement Laying Out Possible Rosneft Participation in Alaska Drilling Project
2013: Exxon And Rosneft Announced An Expansion Of 150 Million Acres Of Exploration Area In The Russian
Arctic And The Possible Participation Of Rosneft In The Point Thomsen Project In Alaska. According to Business
Wire, “Rosneft and ExxonMobil have agreed to expand their cooperation under their 2011 Strategic Cooperation Agreement
to include an additional approximately 600,000 square kilometers (150 million acres) of exploration acreage in the Russian
Arctic and potential participation by Rosneft (or its affiliate) in the Point Thomson project in Alaska. They have also agreed to
conduct a joint study on a potential LNG project in the Russian Far East. The agreements, which include plans to explore
seven new blocks in the Chukchi Sea, Laptev Sea and Kara Sea, were signed by Igor Sechin, president of Rosneft, and Stephen
Greenlee, president of ExxonMobil Exploration Company, in the presence of Russian President Vladimir Putin.” [Business
Wire, 2/13/13]
Potential Conflicts as Secretary of State
RUSSIA WELCOMED TILLERSON SERVING AS SECRETARY OF STATE…
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Russia Indicated It Would Welcome Tillerson As Secretary Of State. According to CNN, “Russia has already indicated it
would welcome Tillerson being named America's top diplomat. ‘Trump continues to amaze,’ Alexey Pushkov, the head of the
foreign affairs committee in the lower house of Russian parliament, said on Twitter. He said that selecting Tillerson would be a
‘sensation’ and noted he has ‘a lot of experience working with Russia.’” [CNN, 12/11/16]
The Guardian: “The Kremlin Praised The Professionalism Of Rex Tillerson.” According to the Guardian, “The
Kremlin has praised the professionalism of Rex Tillerson, thought to be Donald Trump’s leading contender for secretary of
state, the ExxonMobil CEO who has forged close ties to Russia.” [The Guardian, 12/12/16]
Vladimir Putin Spokesman Dmitry Peskov: Tillerson Has “Had Contacts With Our Representatives More
Than Once” And Has Fulfilled His Responsibilities In A “Highly Professional Manner.” According to the
Guardian, “‘On account of his work as the head of one of the largest oil companies, he had contacts with our
representatives more than once,’ President Vladimir Putin’s spokesman Dmitry Peskov told journalists on Monday.
‘He fulfills his responsibilities in a highly professional manner.’” [The Guardian, 12/12/16]
REPUBLICANS EXPRESSED CONCERN
Marco Rubio: “Being A ‘Friend Of Vladimir’ Is Not An Attribute I Am Hoping For From A Secretary Of State.”
According to the New York Times, “Senator Marco Rubio, Republican of Florida, said on Twitter on Sunday, ‘Being a “friend
of Vladimir” is not an attribute I am hoping for from a Secretary of State.’” [New York Times, 12/11/16]
John McCain: “It’s A Matter Of Concern To Me That He Has Such A Close Personal Relationship With Vladimir
Putin And Obviously They’ve Done Enormous Deals Together. That Would Color His Approach To Vladimir Putin
And The Russian Threat.” According to Reuters, “‘It’s a matter of concern to me that he has such a close personal
relationship with Vladimir Putin and obviously they’ve done enormous deals together. That would color his approach to
Vladimir Putin and the Russian threat,’ Republican Senator John McCain told CBS.” [Reuters, 12/12/16]
Lindsey Graham Said Tillerson’s Relationship With The Kremlin And Putin Was “A Bit Unnerving” And Required
Significant Questioning. According to CBS News, “Likewise, Sen. Lindsey Graham, R-South Carolina, in an interview with
the Washington Post, pointed at an award given to Tillerson by the Russian Kremlin two years ago. ‘I don’t know the man
much at all, but let’s put it this way: If you received an award from the Kremlin, [an] Order of Friendship, then we’re gonna
have some talkin’,’ Graham said. ‘We’ll have some questions. I don’t want to prejudge the guy, but that’s a bit unnerving.’”
[CBS News, 12/13/16]
CONFLICTS OF INTEREST
Exxon’s Presence In Over 50 Countries On 6 Continents Could Present Constant Conflicts Of Interest
Wall Street Journal: Exxon’s Large Global Presence That Includes Oil And Gas Exploration On Six Of The World’s
Continents “Could Introduce Sticky Conflicts Of Interest” Should Tillerson Serve As Secretary Of State. According to
the Wall Street Journal, “Exxon has a large global presence, and this could introduce sticky conflicts of interest if Mr. Tillerson
is selected. The company explores for oil and gas on six of the world’s continents and has operations in more than 50
countries.” [Wall Street Journal, 12/10/16]
With Tillerson’s $218 Million In Exxon Stock And His Pension Plan Was Worth Nearly $70 Million, His Interests
Could Be Colored By His Desire To See The Company Succeed In Russia And Elsewhere In The Future. According
to the New York Times, “Also likely to come up at confirmation hearings would be Mr. Tillerson’s potential interest in seeing
Exxon succeed in Russia and elsewhere in the future. According to company filings this year, Mr. Tillerson owned $218
million in company stock, and his pension plan was worth nearly $70 million.” [New York Times, 12/11/16]
Tillerson Agreed To Put His Exxon Assets Into A Blind Trust
Tillerson To Sell The Majority Of His Exxon Shares And Placed His Pension Assets Into A Blind Trust. According
to ABC News, “Rex Tillerson will get a $180 million retirement package from Exxon Mobil Corp. if he is confirmed as
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President-elect Donald Trump’s secretary of state. Tillerson will give up more than 2 million Exxon shares he would have
received over the next 10 years. In exchange, the company will make a cash payment equal to the value of those shares to a
trust to be overseen by a third party. Exxon said Wednesday that Tillerson has already promised the State Department that he
will sell another 611,000 shares he currently owns, worth about $55 million at Wednesday’s price, if confirmed. His Senate
confirmation hearing begins next week. Tillerson’s selection raised potential conflict-of-interest issues because Exxon has
business interests around the globe, including Russia. Putting his retirement nest egg into a trust is intended to ease concerns
that Tillerson could make decisions as secretary of state that would financially help himself or his former associates. Federal
ethics rules do not require government officials to sell off their investments but they must recuse themselves from matters that
would affect those investments. Given Exxon’s global operations, ownership of Exxon stock could severely limit Tillerson’s
actions as the nation’s chief diplomat.” [ABC News, 1/4/17]
Suggested delete?
Tillerson Would Benefit From Lifting The Russian Sanctions
Tillerson’s Retirement Funds Could “Potentially Be Affected By State Department Activities” Including For
Example, His Benefitting “From Such Potential Department Actions As The Lifting Of Sanctions On Russia.
According to the Wall Street Journal, “Mr. Tillerson, who is slated to retire next year, has retirement funds worth tens of
millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit
from such potential department actions as the lifting of sanctions on Russia.” [Wall Street Journal, 12/10/16]
As The Obama Administration Encouraged Distance From Russia And Prepared Sanctions Against Them,
Tillerson Was Pursuing An Agreement To Promote More Business With State-Owned Rosneft To Expand Joint
Drilling In The Arctic Ocean. According to the New York Times, “Mr. Tillerson’s clever maneuvering in Russia at a time of
growing tensions with the West was amply shown in 2014, shortly after the United States and its allies applied sanctions on
Russia for meddling in Ukraine. President Obama asked American business leaders not to attend a major business forum in
Russia that May, and Mr. Tillerson obeyed the president’s wishes. But Mr. Tillerson, Exxon Mobil’s chief executive, still found
a way to get a seat at the table. He sent his company’s top exploration official in his place. The official, Neil W. Duffin, signed
an agreement to promote more business with state-owned Rosneft to expand joint drilling in the Arctic Ocean, develop shale
fields with new technologies and cooperate on a gas export plant in Siberia. Tougher sanctions eventually froze the growth of
Exxon’s activities in Russia, but Mr. Tillerson had once again proved his commitment to doing business with the country’s
president, Vladimir V. Putin.” [New York Times, 12/11/16]
Tillerson Lobbied Against Sanctions To Preserve His Business Deal With Rosneft. According to Politico,
“Shortly before sending his emissary to St. Petersburg to sign the deal, Tillerson told reporters in Texas that he was
lobbying Washington against sanctions. ‘Our views are being heard at the highest levels,’ he said. ‘There has been no
impact on any of our business activities in Russia to this point, nor has there been any discernible impact on the
relationship’ with Rosneft, he added.” [Politico, 12/10/16]
Tillerson Has Opposed Sanctions On Russia Because He Saw Them As A Barrier To New Oil
Development In The Barents Sea And The Bazhenov Shale Field In Western Siberia. According to the New
York Times, “Mr. Tillerson has opposed sanctions on Russia, which are the single greatest obstacle to foreign
investment in that country. Russia has two enormous areas for new oil development, in the Barents Sea and the
Bazhenov shale field in western Siberia, that are essentially closed to development because of a lack of foreign capital
and expertise. Exxon was poised to invest in both areas before the sanctions.” [New York Times, 12/11/16]
CNN: “Exxon Said It Could Have Lost Up To $1 Billion Due To The Sanctions” And Would Therefore Stand To
“Gain If Sanctions Are Lifted On Russia By The New Administration.” According to CNN, “In 2014, Exxon was hit
hard by a round of U.S. and European Union sanctions that targeted Russia for its intervention in Ukraine. Exxon said it
could have lost up to $1 billion due to the sanctions, according to regulatory filings. Exxon would likely stand to gain if
sanctions are lifted on Russia by the new administration.” [CNN, 12/11/16]
Tillerson: “We Are Very Anxious To Get Back To Work [In Russia.]” According to CNN, “‘We are very anxious to get
back to work there,’ Tillerson told industry analysts in March when asked if Exxon would be interested in restarting its venture
with Rosneft in Russia.” [CNN, 12/11/16]
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Tillerson: The Russians Haven't Done Anything To “Make The Situation Worse,” To The Contrary, Russia
Has “Done Things To Help Us Hang On To The Rights We Have’ In The Wake Of The Sanctions.”
According to CNN, “Tillerson said he's ‘thankful’ the Russians haven't done anything to ‘make the situation worse.’
To the contrary, Tillerson said Russia has ‘done things to help us hang on to the rights we have’ in the wake of the
sanctions. ” [CNN, 12/11/16]
George W. Bush
RELATIONSHIPS WITH INDIVIDUALS
2005: Rex Tillerson Attended A Dinner With Prince Abdullah Of Saudi Arabia And President George Bush. “Sunday
night, in the main dining room of The Mansion, Prince Abdullah and former President George H.W. Bush broke bread with a
carefully selected group. Both the former president and the crown prince made remarks to the gathering. Among the
muckety-mucks were oil woman and Mansion founder Caroline Rose Hunt; her half-brother, oilman Ray Hunt, who has
extensive oil interests in Saudi Arabia's southern neighbor Yemen; Ray Hunt's former Hunt Oil lieutenant Jim Oberwetter,
U.S. ambassador to Saudi Arabia; ExxonMobil CEO Lee Raymond; ExxonMobil president Rex Tillerson; ConocoPhillips
chairman and CEO James J. Mulva; PepsiCo CEO Steve Reinemund; Bush 41's Commerce Secretary Robert Mosbacher; Bush
43's former Commerce Secretary Don Evans; Winn Exploration chairman and president Charles Winn; Federal Reserve Bank
of Dallas president Richard Fisher; Dallas Cowboys owner Jerry Jones; and former ambassador and Bush insider Jeanne
Johnson Phillips.” [Dallas Morning News, 4/27/05]
2006: Rex Tillerson Called President George W. Bush’s Reference To America’s “Addiction To Oil” An
“Unfortunate Choice Of Words.” According to the New York Times, “In contrast to rivals at BP and Royal Dutch Shell,
which plan to invest billions of dollars in the next decade to develop renewable energy sources like wind and solar power, Mr.
Tillerson sees Exxon's future as still firmly tied to oil and natural gas. The answer to today's high prices? ‘More supplies.’
President Bush's reference to America's ‘addiction to oil’? ‘An unfortunate choice of words.’ Exxon's role in society? ‘A good
business, and what we do brings good things to people.’ ‘To say suddenly that there is something wrong about that,’ he said, ‘I
can't connect with that.’” [New York Times, 3/30/06]
Tillerson Sided With Saudi Officials And Diplomats Insulted By Bush’s Rhetoric And Argued That Pursuing
Energy Independence Was “Not Attainable” And “Misguided.” According to Private Empire: ExxonMobil and
American Power, “After the speech was delivered, Saudi officials and diplomats from other oil producers aligned with
the United States, who felt they had been insulted, protested formally to the White House. ‘It upset the Saudis,’ the
senior official recalled. ‘Demarches followed that speech.’4 In Irving, Rex Tillerson sided with the Saudis. He believed,
as did ExxonMobil’s Management Committee, that ‘energy independence is not attainable, not any time in the
foreseeable future,’ and that its pursuit was not desirable because it would set the United States on ‘misguided courses’
that might raise the cost of energy in the American economy, destroy jobs, and disrupt trade alliances around the
world.5 As for Middle Eastern oil, in particular, it represented less than a quarter of American oil imports, and the
percentage seemed likely to decline in the future, as African, Canadian, and other sources of supply grew. Most Middle
Eastern oil went to Asia, and more would head east in the future.” [Private Empire: ExxonMobil and American
Power, pg. 439, 2012]
2008: Rex Tillerson Criticized President Bush For Calling On Saudi Arabia To Boost Oil Production But Not
Opening Up Offshore Areas And Increasing Production In The U.S. According to the Globe and Mail, “Last week,
Exxon Mobil Corp.'s chief executive Rex Tillerson chided President George W. Bush for asking Saudi Arabia to boost its
production, while not doing more to increase production at home in the U.S., particularly off the coasts of Florida and
California. ‘There is no question in my mind that there is significant conventional resources available,’ Mr. Tillerson said in an
interview last week. ‘If you are looking for larger fields, they will probably be found in the off-shore areas that are currently off
limits.’ Those offshore areas are closed to exploration and drilling under Congressional moratoriums and Presidential
executive orders that command broad support among elected officials in the politically powerful states of California and
Florida. Opening these areas up could prove nettlesome.” [Globe and Mail, 5/23/08]
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Lee Raymond
2006: Rex Tillerson On Exxon Mobil’s Giant Retirement Package To Outgoing CEO Lee Raymond: “I Don't Have
Any Regrets.” According to the Dallas Morning News, “Exxon Mobil Corp. shareholders showed their frustration
Wednesday with the giant retirement package given to former chief executive Lee Raymond. Only 79 percent of shareholders
of the world's largest public company voted for this year's slate of board members, who decide how much to pay executives.
For the last two years, the Exxon boards were elected by about 97 percent. And, for the first time ever, a shareholder
proposal received a majority of votes, at 52.2 percent. The proposal: It should take a majority of votes to elect board members
rather than just one yes vote. Current chief executive Rex Tillerson said the board will consider the proposal, but, on Mr.
Raymond's retirement pay, he said: ‘I don't have any regrets.’” [Dallas Morning News, 6/1/06]
2006: Rex Tillerson Praised Lee Raymond’s Leadership At ExxonMobil: “He Had A Remarkable Run In This
Company. […] It's A Result Of A Very Long, Deliberate Process Of Positioning The Company.” According to the
Dallas Morning News, “Current chief executive Rex Tillerson said the board will consider the proposal, but, on Mr.
Raymond's retirement pay, he said: ‘I don't have any regrets.’ The former chief executive retired at the end of last year. He got
a $98.1 million lump-sum retirement payment, and during retirement he'll be able to redeem the $256 million in restricted
shares and options he's accumulated over his career. ‘If you add it up the right way, it's a big number,’ said Mr. Tillerson, who
isn't involved in setting executive compensation. ‘He had a remarkable run in this company. ... It's a result of a very long,
deliberate process of positioning the company.’” [Dallas Morning News, 6/1/06]
BP CEO John Browne
2006: Two Weeks After Rex Tillerson Expressed Doubt Over The Veracity Of Global Warming, BP’s Chief
Executive John Browne Said Companies Denying Climate Change “Gives Business A Bad Name.” According to the
Washington Post, “Tillerson is also sticking to his determination to question scientists who say carbon dioxide emissions are
causing global warming. ‘We think it's important that there be a very meaningful debate about it,’ he said at the annual
meeting. ‘And it ought to consider all the skeptics because skeptics sometimes identify an issue that hasn't been thought
about.’ In a speech delivered two weeks later, Browne said that when companies denied that climate change was a serious
issue and said there was nothing business could do, ‘it gives business a bad name.’” [Washington Post, 8/6/06]
Sarah Palin
2007: Governor Sarah Palin Criticized ExxonMobil Amid Negotiations With The Company Saying, “What Bothers
Me Is That Alaska Tried It Exxon’s Way. The Result Was A Contract That Is Not Viable.” “According to Natural
Gas Week, “In a separate incident, Exxon Chief Executive Rex Tillerson told reporters at an energy conference in Houston
last week that negotiations with the state of Alaska have lost momentum since the change of administration in December. ‘I
don’t really know where we are. I don’t think it looks like Alaska knows where it wants to go, either,’ Tillerson said. Alaska
Gov. Sarah Palin was quick to challenge Tillerson’s depiction of the process. ‘What bothers me is that Alaska tried it Exxon’s
way. The result was a contract that is not viable,’ Palin said in a written statement. ‘We know exactly where we’re going and
have a plan to move forward. Exxon doesn’t like that plan because it puts the interests of Alaska and the nation, first -- and
not Exxon.’” [Natural Gas Week, 2/19/07]
2007: Governor Sarah Palin: “We Know Exactly Where We’re Going And Have A Plan To Move Forward.
Exxon Doesn’t Like That Plan Because It Puts The Interests Of Alaska And The Nation, First -- And Not
Exxon.” “According to Natural Gas Week, “In a separate incident, Exxon Chief Executive Rex Tillerson told
reporters at an energy conference in Houston last week that negotiations with the state of Alaska have lost
momentum since the change of administration in December. ‘I don’t really know where we are. I don’t think it looks
like Alaska knows where it wants to go, either,’ Tillerson said. Alaska Gov. Sarah Palin was quick to challenge
Tillerson’s depiction of the process. ‘What bothers me is that Alaska tried it Exxon’s way. The result was a contract
that is not viable,’ Palin said in a written statement. ‘We know exactly where we’re going and have a plan to move
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forward. Exxon doesn’t like that plan because it puts the interests of Alaska and the nation, first -- and not Exxon.’”
[Natural Gas Week, 2/19/07]
Washington Post: Sarah Palin Blamed Rex Tillerson “For Orchestrating An Effort To Smear Her Efforts To Rewrite
A Pipeline Deal That Would Bring Natural Gas Owned By Exxon And Others To New Markets.” According to
Washington Post, “Exxon Mobil’s reputation in Alaska was so bad that Marathon Oil executives told top state officials that
‘Exxon made them look good,’ according to one of the e-mails Palin received. But Palin also personally took umbrage at the
firm’s influence in the state and took relish in ordering it at one point to give up some energy leases it had not used. She also
blamed Exxon Chairman Rex W. Tillerson for orchestrating an effort to smear her efforts to rewrite a pipeline deal that would
bring natural gas owned by Exxon and others to new markets. ‘Do you suppose TRex put him up to this?’ she asked an aide in
March 2007 about a published critique of her alternative pipeline plan. ‘Ugh.’ Two months earlier, Palin won the cheers of her
staff when she canceled a meeting with Exxon officials in the state capital, ex-plaining to reporters that she thought it was
‘more fun’ to spend that time reading to kindergarten students. ‘What a great choice it was versus meeting with Exxon!’ her
top appointee at the Natural Resources Department wrote to her in one e-mail.” [Washington Post, 6/13/11]
Sarah Palin Was “Extremely Disappointed” With The Supreme Court’s Ruling Favorable To Exxon Mobil Related
To The Exxon Valdez Tragedy. According to Oil & Gas Journal, “ExxonMobil Chairman and Chief Executive Officer Rex
W. Tillerson issued a statement saying ExxonMobil has ‘worked hard over many years to address the impacts of the spill and
to prevent such accidents from happening in our company again.’ Alaska Gov. Sarah Palin said she was ‘extremely
disappointed’ with the Supreme Court decision. ‘While the decision brings some degree of closure to Alaskans suffering from
19 years of litigation and delay, the court gutted the jury’s decision on punitive damages,’ Palin said. ‘It is tragic that so many
Alaska fishermen and their families have had their lives put on hold waiting for this decision.’” [Oil & Gas Journal, 7/7/08]
Mitt Romney
Rex Tillerson Advised Mitt Romney Ahead Of A Campaign Speech On Energy Policy. According to Power, Finance
And Risk, “Mitt Romney vowed to take advantage of ‘oil, gas, nuclear and renewables’ if elected president while fundraising in
former President George W. Bush’s West Texas hometown of Midland. Romney is poised to deliver a speech that lays out his
plan for energy tomorrow in New Mexico. Romney has sought advice from Harold Hamm, a billionaire Oklahoma oil baron,
and Rex Tillerson, ceo of Exxon-Mobil, for the speech.” [Power, Finance And Risk, 8/20/12]
Rex Tillerson Advised Mitt Romney On Energy Policy At A $50,000-A-Plate Fundraiser. According to the New York
Times, “At a $50,000-a-plate shrimp-and-steak lunch in Houston last month, Mr. Romney solicited advice on energy policy
from scores of oil and gas executives. The group -- which included Rex W. Tillerson, chief executive of Exxon Mobil, and
Harold G. Hamm of Continental Resources, a top adviser to the Romney campaign -- told Mr. Romney that the best thing he
could do would be to re-duce the regulatory burdens on the industry and permit more drilling on federal lands.” [New York
Times, 9/14/12]
Barack Obama
Pres. Obama Met With Rex Tillerson And Other Executives To Seek Support For Stalled Cybersecurity Legislation.
According to the Chicago Tribune, “President Barack Obama met Wednesday with a dozen executives in the White House to
seek their support for stalled cybersecurity legislation amid increasing evidence that government agencies, businesses and
individuals are vulnerable. The closed-door session in the Situation Room came a day after the nation’s top intelligence
officials warned at a Senate hearing that cyberattacks and digital spying have eclipsed terrorism as the top threat to national
security. […] The attendees The CEOs who met with President Barack Obama: *Rex Tillerson, Exxon Mobil” [Chicago
Tribune, 3/14/13]
According To An Official, At A Private Meeting With Business Executives President Obama Bluntly Told Rex
Tillerson That He Expected The Oil Industry To Use Its Engineering Talents To Fix The BP Oil Spill And Prevent
Others. According to The Washington Post, “The president has pressured other oil companies to step up. At a May 3 dinner
at the White House with business executives, says one official who was there, Obama bluntly told Exxon Mobil Chairman Rex
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Tillerson that he expected the entire petroleum industry to dedicate its engineering talent to fixing the spill and preventing
others. It is a question of duty, Obama told him -- and also of the industry’s own financial interest.” [The Washington Post,
6/6/10]
Prince Abdullah of Saudi Arabia
2005: Rex Tillerson Attended A Dinner With Prince Abdullah Of Saudi Arabia And President George Bush. “Sunday
night, in the main dining room of The Mansion, Prince Abdullah and former President George H.W. Bush broke bread with a
carefully selected group. Both the former president and the crown prince made remarks to the gathering. Among the
muckety-mucks were oil woman and Mansion founder Caroline Rose Hunt; her half-brother, oilman Ray Hunt, who has
extensive oil interests in Saudi Arabia's southern neighbor Yemen; Ray Hunt's former Hunt Oil lieutenant Jim Oberwetter,
U.S. ambassador to Saudi Arabia; ExxonMobil CEO Lee Raymond; ExxonMobil president Rex Tillerson; ConocoPhillips
chairman and CEO James J. Mulva; PepsiCo CEO Steve Reinemund; Bush 41's Commerce Secretary Robert Mosbacher; Bush
43's former Commerce Secretary Don Evans; Winn Exploration chairman and president Charles Winn; Federal Reserve Bank
of Dallas president Richard Fisher; Dallas Cowboys owner Jerry Jones; and former ambassador and Bush insider Jeanne
Johnson Phillips.” [Dallas Morning News, 4/27/05]
President Nursultan Nazarbayev of Kazakhstan
February, 2006: Rex Tillerson Met With President Of Kazakstan Nursultan Nazarbayev At The Presidential Palace
In Astana. According to the BBC, “Today the president [Nursultan Nazarbayev] in his residence in the capital met the new
Chairman of the Board of Directors and Chief Executive Officer of ExxonMobil Corporation, Rex Tillerson. ExxonMobil is
one of the major investors in Kazakhstan. The company has invested about 4bn dollars in our country's economy. At the
meeting, Rex Tillerson, above all, shared his impressions of the Ak Orda [presidential] palace and Astana as a whole with
Nursultan Nazarbayev. The US businessman believes that the dynamic development of our capital is a clear indicator of the
progress in the whole country. [Rex Tillerson, captioned as Chairman of the Board of Directors and Chief Executive Officer
of ExxonMobil Corporation, in English with Russian voice overlaid] I am very glad to be in Astana again. It is a great pleasure
to watch the progress in your capital. I am glad to meet President Nazarbayev and discuss ExxonMobil's projects in
Kazakhstan. Relations between our corporation and Kazakhstan are developing very well and successfully.” [BBC, 2/24/06]
Rex Tillerson: “I Am Very Glad To Be In Astana Again. It Is A Great Pleasure To Watch The Progress In
Your Capital. I Am Glad To Meet President Nazarbayev And Discuss ExxonMobil's Projects In
Kazakhstan.” According to the BBC, “Today the president [Nursultan Nazarbayev] in his residence in the capital
met the new Chairman of the Board of Directors and Chief Executive Officer of ExxonMobil Corporation, Rex
Tillerson. ExxonMobil is one of the major investors in Kazakhstan. The company has invested about 4bn dollars in
our country's economy. At the meeting, Rex Tillerson, above all, shared his impressions of the Ak Orda [presidential]
palace and Astana as a whole with Nursultan Nazarbayev. The US businessman believes that the dynamic
development of our capital is a clear indicator of the progress in the whole country. [Rex Tillerson, captioned as
Chairman of the Board of Directors and Chief Executive Officer of ExxonMobil Corporation, in English with
Russian voice overlaid] I am very glad to be in Astana again. It is a great pleasure to watch the progress in your capital.
I am glad to meet President Nazarbayev and discuss ExxonMobil's projects in Kazakhstan. Relations between our
corporation and Kazakhstan are developing very well and successfully.” [BBC, 2/24/06]
September, 2006: Rex Tillerson Met With Kazakh President Nursultan Nazarbayev In Washington. According to
Interfax-Kazakhstan news agency, “Major US oil companies - ExxonMobil, ConocoPhillips and Halliburton - are interested in
the implementation of new projects in Kazakhstan, the heads of the companies told Kazakh journalists in Washington on 28
September after bilateral meetings with Kazakh President Nursultan Nazarbayev. The chairman of the board of directors and
the chief executive officer of ExxonMobil, Rex Tillerson, said in response to a question from the Interfax-Kazakhstan news
agency: ‘We conducted numerous talks in Kazakhstan with KazMunayGaz (national oil and gas company - Interfax-
Kazakhstan) and other companies. Possibly, we will implement new projects in the near future. We will cooperate with Agip
(an operator of the project on developing the northern part of the Caspian Sea as part of the international consortium Agip
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KCO - Interfax-Kazakhstan) and Tengizchevroil (international joint venture developing the Tengiz deposit in western
Kazakhstan - Interfax-Kazakhstan) in developing the major Karachaganak field,’ Tillerson said. [Interfax-Kazakhstan (via
BBC), 9/29/06]
2011: Rex Tillerson Met With Kazakh President Nursultan Nazarbayev. According to Interfax via BBC Monitoring
Central Asia Unit, “Text of report by privately-owned Interfax-Kazakhstan news agency Astana, 21 September: As part of his
working visit to New York, Kazakh President Nursultan Nazarbayev has held a meeting with Rex Tillerson, chairman of the
board of directors of the [US energy giant] ExxonMobil Corporation. ‘The meeting discussed boosting investment
cooperation and expanding American companies’ participation in implementing Kazakh projects,’ says a statement released by
the presidential press service.” [Interfax via BBC Monitoring Central Asia Unit, 9/21/11]
Muammar Gaddafi
2007: Rex Tillerson Met With Libyan Dictator Muammar Gaddafi To Discuss Opening Libya’s Vast Oil Fields To
Exxonmobil. According to The Globe And Mail, “Exxon Mobil Corp. chief executive officer Rex Tillerson, seeking more
access to Libya’s vast oil fields, met with leader Moammar Gadhafi in the North African nation last month. The meeting
occurred less than a year after the United States ended its official designation of Libya as a sponsor of terrorism, and is a sign
of both the growing importance of the North African nation for U.S. oil companies and the rapid thaw of relations between
the two nations. Exxon has a long history in Libya. It discovered the first oil field around 1960, but left the country in 1986
when Washington banned U.S. oil companies from investing there. ‘It was a great meeting,’ Mr. Tillerson said this week of his
sit-down with Col. Gadhafi, held in a tent. ‘He was a very gracious, cordial host.’” [The Globe And Mail, 3/8/07]
2007: Rex Tillerson On His Meeting With Libyan Dictator Muammar Gaddafi, “It Was A Great Meeting
[…] He Was A Very Gracious, Cordial Host.” According to The Globe And Mail, “Exxon Mobil Corp. chief
executive officer Rex Tillerson, seeking more access to Libya’s vast oil fields, met with leader Moammar Gadhafi in
the North African nation last month. The meeting occurred less than a year after the United States ended its official
designation of Libya as a sponsor of terrorism, and is a sign of both the growing importance of the North African
nation for U.S. oil companies and the rapid thaw of relations between the two nations. Exxon has a long history in
Libya. It discovered the first oil field around 1960, but left the country in 1986 when Washington banned U.S. oil
companies from investing there. ‘It was a great meeting,’ Mr. Tillerson said this week of his sit-down with Col.
Gadhafi, held in a tent. ‘He was a very gracious, cordial host.’” [The Globe And Mail, 3/8/07]
Rex Tillerson And Exxon Had Relationships With Ghaddafi. According to the Charlie Rose Show, “CHARLIE ROSE:
Did Exxon have deals with Gadhafi in Libya, Hussein and Iraq, none in Iran? REX TILLERSON: We had none in Iran. We
had none in Iraq with Hussein. We were there prior -- CHARLIE ROSE: Right. REX TILLERSON: -- to Hussein`s term of
power and of course we`re back in Iraq now. We had some exploration blocks in Libya that we entered into in the post
normalization of relations with Libya. CHARLIE ROSE: Right. REX TILLERSON: And Colonel Gadhafi -- CHARLIE
ROSE: When he gave up his nuclear ambitions. REX TILLERSON: Yes so I had a conversation very much like that with
him.” [Charlie Rose Show, 3/7/13]
Rex Tillerson Said Be Believed Ghaddafi Was A “Rational Man” When They Met. According to the Charlie Rose
Show, “CHARLIE ROSE: Did you think you were talking to a rational man? REX TILLERSON: Yes, believe it or not. He
was pretty rational in the meeting I had with him where we talked about what I was going to do, and the things. And we had
some other things we thought we could do and his interest in that. And that you know all that I can expect is that he`ll stand
by his side of the deal and I promise I`ll stand by mine.” [Charlie Rose Show, 3/7/13]
Nigerian President Umaru Musa Yar’Adua
2008: Rex Tillerson Met With Nigerian President Umaru Musa Yar’Adua Who Afterward Directed His Oil Minister
To Hold Talks With Exxonmobil On The Construction Of A Gas-To-Gasoline Plant. According to Africa News,
“President Umaru Musa Yar’Adua has directed the Ministry of Petroleum to hold talks immediately with ExxonMobil
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egarding the oil company’s proposals to build a gas-to-gasoline plant in Nigeria. The President was speaking when he received
an ExxonMobil delegation, led by Mr. Rex Tillerson, Chairman/Chief Executive Officer, at State House, on Friday, March 28.
[…] Earlier, Mr. Rex Tillerson, ExxonMobil Chief Executive Officer, had told the President that his company was capable of
building a plant to produce up to 100,000 barrels of gasoline per day from natural gas, with other by-products such as liquefied
petroleum gas. He expressed appreciation to the President for creating the environment, which enables private sourcing of
funds for the country’s oil sector, and assured that his company had confidence in the Nigerian economy.” [Africa News,
3/28/08]
Nigerian President Goodluck Jonathan
2011: Rex Tillerson Met With Nigerian President Goodluck Jonathan. According to Africa News, “Before returning to
Nigeria on Friday, President Jonathan will attend a high-level round-table on the Nigerian economy being organized by the
African Business Round-table and Nigeria’s Permanent Mission to the United Nations. The President will also confer with
some leading players in the global economy, including the Chairman and Chief Executive Officer of Exxon Mobil Worldwide,
Mr. Rex W. Tillerson and Mr. Klaus Schwab, the Founder and Executive Chairman of the World Economic Forum.” [Africa
News, 9/19/11]
The Clintons
Rex Tillerson Participated In The 2009 Clinton Global Initiative’s Annual Conference. According to the New Yorker,
“On the morning of September 23, 2009, Rex Tillerson arrived at the Sheraton on Seventh Avenue in New York, to
participate in a plenary session at the [Clinton] Global Initiative’s annual conference. The session was entitled ‘Investing in
Girls and Women.’ It took place in a ballroom decorated in purple and red, with large television screens to help the audience
see celebrities like Matt Damon and Bono; delegates sat with name tags dangling around their necks. Diane Sawyer came
onstage to moderate. Next to her were Edna Adan, the founder of a maternity hospital in Somaliland; Melanne Verveer, the
U.S. Ambassador-at-Large for Global Women’s Issues (and a neighbor of Dan Nelson’s); and Zainab Salbi, an Iraqi-born
activist who had started a network called Women for Women International. Also on the panel were Tillerson and Lloyd
Blankfein, the C.E.O. of Goldman Sachs. The atmosphere suggested the laying on of liberal hands to cleanse two sinful
multinational corporations.” [New Yorker, 4/9/12]
Jeb Bush
Rex Tillerson Supported Jeb Bush During The Republican Primaries, Donating $2,700 To The Bush Campaign,
And Another $5,000 To The Right To Rise. According to the Wall Street Journal, “Mr. Tillerson supported a Trump rival
in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another
$5,000 to the Right to Rise, the super PAC that backed Mr. Bush.” [Wall Street Journal, 12/5/16]
Donald Trump
CNN: Trump Praised Tillerson As “Much More Than A Business Executive” And A “World-Class Player” Citing
The Fact That Tillerson “Knows Many Of The Players’ And Does “Massive Deals In Russia’ For Exxon.” According
to CNN, “Trump praised Tillerson on Fox News Sunday as ‘much more than a business executive’ and a ‘world-class player.’
Trump cited the fact that Tillerson ‘knows many of the players’ and does ‘massive deals in Russia’ for Exxon.” [CNN,
12/11/16]
Kellyanne Conway: “Rex Tillerson Is A Very Trumpian-Inspired Pick Because It's Somebody Who, Like Donald
Trump, Has A Career Outside Of Politics And He's Somebody Who Is Accustomed To Making Big Deals And
Making — Translating That Into Big Impact.” According to the Washington Post, “Here's what Trump campaign
manager Kellyanne Conway said about Tillerson in an interview Monday on MSNBC's ‘Andrea Mitchell Reports’: ‘Rex
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Tillerson is a very Trumpian-inspired pick because it's somebody who, like Donald Trump, has a career outside of politics and
he's somebody who is accustomed to making big deals and making — translating that into big impact.’” [Washington Post,
12/12/16]
Tillerson Did Not Contribute To Trump’s Campaign. According to the Wall Street Journal, “He didn’t make a
contribution to Mr. Trump’s campaign, according to the Center for Responsive Politics, which tracks political giving.” [Wall
Street Journal, 12/5/16]
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Argentine Government
RELATIONSHIP WITH GROUPS
Rex Tillerson: “The Climate Of Investment And The Functioning Of Trade Are Clearly Improving” In Argentina.
According to Telam News Agency via BBC Monitoring Latin America, “Exxon Mobil Corporation's CEO Rex Tillerson said
that new investment outlook in Argentina ‘could lead the company to increase’ the amount of money for the project, where
the company has already invested 200m US dollars in exploratory drilling. ‘Depending on the success of the programme, we
will define if it possible to advance toward the total development of the project,’ Tillerson said on Thursday 2 June after a
meeting with President Mauricio Macri at his official residence. Tillerson also said that the development of the project is going
to be carried out in a period of 20 to 30 years and that ‘it could require an additional investment of more than 10 thousand
million dollars.’ ‘I am very optimistic with the changes that have taken place here in Argentina with the new government. The
climate of investment and the functioning of trade are clearly improving,’ he said.” [Telam News Agency via BBC Monitoring
Latin America, 6/3/16]
Libyan Government
November, 2007: Exxonmobil. Signed A Deal With The Libyan Government To Explore For Oil And Natural Gas
Off The Libyan Coast. According to The Globe And Mail, “Exxon Mobil Corp. signed a deal to explore for oil and natural
gas off the Libyan coast, further cementing ties with the oil-rich African nation. Yesterday’s agreement comes a year after
Exxon chief executive officer Rex Tillerson met face-to-face with Libyan leader Col. Moammar Gadhafi and less than two
years after the U.S. ended its official designation of Libya as a sponsor of terrorism. Unlike previous exploration deals that
Exxon has won in Libya in the past couple of years, the latest deal was negotiated directly between the two, outside the
auction process. Under the deal, Exxon, of Irving, Tex., agreed to look for oil and gas in a deep-water area about 177
kilometres off the Libyan coast in the Mediterranean Sea. It has agreed to drill at least one well and will pay a bonus to the
Libyan government. The company didn’t disclose the size of the bonus.” [The Globe And Mail, 11/21/07]
Mexican Government
Rex Tillerson Said ExxonMobil Was Considering Working With The Mexican State Oil Company To Drill In The
Gulf Of Mexico. According to Platts Oilgram News, “ExxonMobil is speaking with Mexican state oil company Pemex on the
possibility of working together on leases in that country's deepwater, although CEO Rex Tillerson said on Wednesday any
deals that could result would be narrowly ‘specific’ and must meet strict investment criteria. Speaking to reporters after the
company's annual shareholder meeting, Tillerson said the structure of how the company might partner with Pemex, whether in
joint ventures or other pairings, would be ‘area-specific and opportunity-by-opportunity specific.’ Tillerson said the focus of
the talks is ‘large exploration areas’ and stressed nothing has been concluded, and declined comment on any likely outcomes.
[…] Tillerson said his company and Pemex have held talks ever since Mexico approved energy reforms in late 2013 that ended
the state company's upstream monopoly. The reforms will give oil companies the chance to partner with Pemex on the
Mexican company's blocks and also bid for deepwater leases in a scheduled bidding round in December.” [Platts Oilgram
News, 5/26/16]
Kazakstani Government
September, 2006: Rex Tillerson Told Kazakh Journalists He Was In Talks With Kazakh Companies To Develop Oil
Fields. According to Interfax-Kazakhstan news agency, “Major US oil companies - ExxonMobil, ConocoPhillips and
Halliburton - are interested in the implementation of new projects in Kazakhstan, the heads of the companies told Kazakh
journalists in Washington on 28 September after bilateral meetings with Kazakh President Nursultan Nazarbayev. The
chairman of the board of directors and the chief executive officer of ExxonMobil, Rex Tillerson, said in response to a
question from the Interfax-Kazakhstan news agency: ‘We conducted numerous talks in Kazakhstan with KazMunayGaz
(national oil and gas company - Interfax-Kazakhstan) and other companies. Possibly, we will implement new projects in the
near future. We will cooperate with Agip (an operator of the project on developing the northern part of the Caspian Sea as
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part of the international consortium Agip KCO - Interfax-Kazakhstan) and Tengizchevroil (international joint venture
developing the Tengiz deposit in western Kazakhstan - Interfax-Kazakhstan) in developing the major Karachaganak field,’
Tillerson said. [Interfax-Kazakhstan (via BBC), 9/29/06]
2008: Rex Tillerson Was Part Of Resolving A Dispute Between Kazakhstan And A Consortium Of Oil Companies,
Including ExxonMobil, To Develop The Kashagan Oil Field. According to the New York Times, “A consortium of
foreign companies has resolved a dispute over Kazakhstan’s giant Kashagan oil field by agreeing to pay the government a
bonus of up to $4.5 billion and to transfer 8.5 percent of the project to the national oil company of Kazakhstan. The big
payout, not foreseen in the original 1997 contract, was the latest by oil companies to governments in oil-producing regions.
The governments are demanding ever-larger shares of the revenues at a time of record oil prices. Still, oil analysts suggested
that the consortium, including Exxon Mobil and led by Eni of Italy, might have dodged a bullet, given the growing bargaining
power that petroleum states have with oil close to $100 a barrel. Analysts put the cost of the concession at $4 billion to $6
billion, including the sale of the 8.5 percent stake to KazMunaiGaz, the national oil company, at a below-market price,
compared with estimates of future earnings at over $30 billion a year from the field. […] But by late Sunday, the executives of
the consortium’s members, including Rex W. Tillerson, chief ex-ecutive of Exxon Mobil, had agreed to cede a part of the
project to KazMunaiGaz.” [New York Times, 1/15/08]
2016: Rex Tillerson Met With Kazakhstan’s President Nursultan Nazarbayev To Discuss The Development Of
Kazakhstan’s Oil And Gas Industry And The Implementation Of Investment Projects. According to Kazinform via
BBC Monitoring Central Asia Unit, “President of Kazakhstan Nursultan Nazarbayev has met Rex Tillerson, chairman of the
Exxon Mobil Corporation's board of directors, in St Petersburg, Russia, the Akorda [presidential residence] press service
reports. Issues of Exxon Mobil's participation in the development of Kazakhstan's oil and gas industry and the implementation
of several investment projects were discussed during the meeting. The head of state said that Kazakhstan and
Exxon Mobil had cooperated fruitfully since they started work-ing together. For his part, Rex Tillerson congratulated
Nursultan Nazarbayev on the 25th anniversary of the independ-ence of Kazakhstan and said that the country had achieved
great successes during these years. The chairman of the board of directors of the Exxon Mobil Corporation has expressed
confidence in the further development of partnership relations with Kazakhstan.” [Kazinform via BBC Monitoring Central
Asia Unit, 6/17/16]
Yemeni Government
Rex Tillerson “Flew Into A Rage” During Negotiations With Yemeni Government Representatives Over Their
Insistence That The Yemeni Government Would Have Veto Power Over Certain Business Decisions. According to
the New York Times, “Twenty years ago, as Rex W. Tillerson was rising through the ranks at Exxon, he was charged with
negotiating with the government of Yemen to build a natural gas export plant. The talks got bogged down over Yemen's
insistence that it have veto power over important business decisions. Mr. Tillerson, at one point, flew into a rage, throwing a
five-inch-thick book across the room and storming out, perhaps for dramatic effect. Yemeni negotiators and other
representatives of other oil companies partnering with Exxon in the international consortium looked on in bewilderment. In
the end, Yemen got at least some of its demands. But that kind of hard-charging determination to bend others' will could be
exactly what Presidential-elect Donald J. Trump is looking for in a secretary of state. It is also the kind of unconventionality
that could open up Mr. Tillerson to closer scrutiny in Senate confirmation hearings, particularly when it comes to his close
relations with Russia.” [New York Times, 12/12/16]
U.S.-Russia Business Council
Rex Tillerson Was A Member Of The U.S.-Russia Business Council. According to the Dallas Morning News, “Position:
President and director of Exxon Mobil since March 2004; previously a senior vice president since August 2001. Joined Exxon
as a production engineer in 1975. Age: 53 Education: Bachelor's degree in civil engineering, University of Texas at Austin.
Business and civic groups: Board memberships include the U.S.-Russia Business Council, American Petroleum Institute,
Center for Strategic and International Studies, Society of Petroleum Engineers and Boy Scouts of America.” [Dallas Morning
News, 8/5/05]
Tillerson Served On The U.S.-Russia Business Council. According to Private Empire: ExxonMobil and American Power,
“Bruce Misamore served with Rex Tillerson of ExxonMobil on the U.S.­ Russia Business Council’s board of directors and
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espected him; Tillerson, in turn, had gotten to know Khodorkovsky. It was obvious that ExxonMobil had become a leading
partner in the Bush administration’s Russia oil initiative, which might bring the Kremlin to support a sale of Yukos shares.”
[Private Empire: ExxonMobil and American Power, pg. 265, 2012]
Iraqi Government
2010: Rex Tillerson Said That Exxon And Other Oil Companies Were In Talks With The Iraqi Government About
Developing A Massive Water-Injection Project In Iraq. According to National Post's Financial Post & Fp Investing, “Mr.
Tillerson said that Exxon, the Iraqi government and other big oil companies are still in discussions over a massive waterinjection
project aimed at boosting production in southern oilfields in that country. ‘There are going to be enormous water
requirements to support the production from the fields,’ Mr. Tillerson told reporters. ‘From the beginning, the Iraqi
government has talked about what is going to be the most efficient way to do it. It will be something that we will all have to
talk about further,’ he said, adding that Exxon has not yet been tapped to lead the project.” [National Post's Financial Post &
Fp Investing, 4/20/10]
British Petroleum
2010: Rex Tillerson Strained ExxonMobil’s Relationship With BP By Becoming A Leading Industry Spokesman For
Safer Drilling Practices Following The BP Oil Spill. According to Natural Gas Week, “The difficult logistics are a key
reason that Exxon, Imperial and BP recently formed a joint venture to explore and develop their High Arctic holdings,
Rolheiser explained. The news came as a surprise as Exxon and BP hadn’t been the best of partners in recent years. The two
companies had been at odds since 2005 over problems with the Thunder Horse platform in the Gulf of Mexico, then in 2006
over BP’s maintenance of gathering and pipeline systems on Alaska’s North Slope. The relationship had become even more
strained following the Macondo blowout in April. Exxon Chief Executive Rex Tillerson has evolved into a leading spokesman
for safer industry drilling and production practices, while BP has been excluded from some industry-based activities such as
the recently formed Marine Spill Containment Co. to handle seabed blowouts in the Gulf of Mexico.” [Natural Gas Week,
8/9/10]
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ISSUES
BANKING AND FINANCE
Section Overivew:
Tillerson argued against bailouts, generally, claiming they did not fit with free-market capitalism and prevented innovation
through failure. At the same time, it appeared that Tillerson was not opposed to the Troubled Asset Relief Program
(TARP).
Bailouts
TILLERSON SUGGESTED HE GENERALLY OPPOSED BAILOUTS
Rex Tillerson Suggested That As A “Free-Market Capitalist” He Doesn’t Think Industries Should Be Bailed Out
For Failing. According to Fox News, CAVUTO: What do you think about the -- the mentality that`s just the opposite out
today for scores of others industries, whether they be auto, or banking, financial, what have you, that are going to the
government, that are seeking taxpayer help and this sort of passing of the tin cup? TILLERSON: “Well, that`s a pretty broad
set you can get into, Neil. I`m -- you know, I am a free-market capitalist. I believe in risk- reward, that, when people take risk,
they should have the opportunity to reap the rewards. And, if the risks -- you know, if the risks don`t work out and they fail,
then they fail, and they have to move on and try something else, or let others come in and try in their place to do better. I
think there have been -- there`s a lot of steps that have been taken as we have gotten ourselves into this crisis that, when you
look backwards on those, I think a lot of us would question whether that was the prudent thing to do, if -- or if what we`re
really doing is putting off the inevitable and, in fact, creating obstacles to the next wave of innovation, because that`s one of
the ways the whole system improves itself, is to go through periods of failure, to eliminate the failed concepts or the out-ofdate
concepts, and make...” [Fox News’ Your World with Neil Cavuto, 3/5/09]
Rex Tillerson On Bailouts: “I Think A Lot Of Us Would Question Whether That Was The Prudent Thing To Do, If
-- Or If What We`Re Really Doing Is Putting Off The Inevitable And, In Fact, Creating Obstacles To The Next
Wave Of Innovation.” According to Fox News, CAVUTO: What do you think about the -- the mentality that`s just the
opposite out today for scores of others industries, whether they be auto, or banking, financial, what have you, that are going to
the government, that are seeking taxpayer help and this sort of passing of the tin cup? TILLERSON: “Well, that`s a pretty
broad set you can get into, Neil. I`m -- you know, I am a free-market capitalist. I believe in risk- reward, that, when people
take risk, they should have the opportunity to reap the rewards. And, if the risks -- you know, if the risks don`t work out and
they fail, then they fail, and they have to move on and try something else, or let others come in and try in their place to do
better. I think there have been -- there`s a lot of steps that have been taken as we have gotten ourselves into this crisis that,
when you look backwards on those, I think a lot of us would question whether that was the prudent thing to do, if -- or if
what we`re really doing is putting off the inevitable and, in fact, creating obstacles to the next wave of innovation, because
that`s one of the ways the whole system improves itself, is to go through periods of failure, to eliminate the failed concepts or
the out-of- date concepts, and make...” [Fox News’ Your World with Neil Cavuto, 3/5/09]
Rex Tillerson On Creative Destruction: “Because That`S One Of The Ways The Whole System Improves Itself, Is
To Go Through Periods Of Failure, To Eliminate The Failed Concepts Or The Out-Of- Date Concepts[…].”
According to Fox News, CAVUTO: What do you think about the -- the mentality that`s just the opposite out today for scores
of others industries, whether they be auto, or banking, financial, what have you, that are going to the government, that are
seeking taxpayer help and this sort of passing of the tin cup? TILLERSON: “Well, that`s a pretty broad set you can get into,
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Neil. I`m -- you know, I am a free-market capitalist. I believe in risk- reward, that, when people take risk, they should have the
opportunity to reap the rewards. And, if the risks -- you know, if the risks don`t work out and they fail, then they fail, and they
have to move on and try something else, or let others come in and try in their place to do better. I think there have been --
there`s a lot of steps that have been taken as we have gotten ourselves into this crisis that, when you look backwards on those,
I think a lot of us would question whether that was the prudent thing to do, if -- or if what we`re really doing is putting off the
inevitable and, in fact, creating obstacles to the next wave of innovation, because that`s one of the ways the whole system
improves itself, is to go through periods of failure, to eliminate the failed concepts or the out-of- date concepts, and make...”
[Fox News’ Your World with Neil Cavuto, 3/5/09]
Troubled Asset Relief Program (TARP)
TILLERSON SEEMED TO SAY HE SUPPORTED TARP
Rex Tillerson: While, “I Have Never Favored Bailing Out, As You Call It, Particular Business Enterprises […] I
View [Financial Markets] Very Differently From Examining Individual Companies.” According to Fox News,
CAVUTO: “All right. I`m sorry. Does that mean that you would have recommended against bailing out the auto companies,
bailing out these banks?” TILLERSON: “Well, I -- I have never favored bailing out, as you call it, particular business
enterprises. Now, I think the question of what has happened with the banks and the financial markets is a much more
complicated question. And I know we could have a long conversation around how all of that happened and who is to blame
for setting the conditions around which that happened. But the problem is, once you have the problem, you have to deal with
it. And -- and the financial markets` state of -- of play and the condition they`re in, I think, obviously, because there is a
regulatory structure there, there were -- there were important steps that I think had to be taken. And I don`t want to represent
myself as some kind of financial expert around whether I think what`s been done was -- was necessarily the right thing at the
right time. But I view that as very differently from examining individual companies, business enterprises, who have made
decisions over the course of their business affairs over long periods of time that put themselves at risk of -- of failure, and --
and find themselves in a situation where, in fact, their business models are now failing.” [Fox News’ Your World with Neil
Cavuto, 3/5/09]
Section Overivew:
BUSINESS AND JOBS
Tillerson defended the $357 million compensation package awarded to his predecessor, Lee Raymond.
Tillerson was against the auto bailout, but supported TARP.
CEO Pay
GAVE $357 MILLION RETIREMENT PACKAGE TO PREDECESSOR LEE
RAYMOND
2006: Rex Tillerson Defended The Compensation Package Of Outgoing Exxon Mobil CEO Lee Raymond To
Company Stockholders, Saying Raymond Deserved The $357 Million Retirement Package He Received. According
to Newsday, “ExxonMobil Corp. stockholders yesterday voted down resolutions calling on the world's largest oil company to
change polices on gay rights, climate change and executive pay. A proposal to add sexual orientation to the company's
employee anti-discrimination policy received almost 35 percent support in balloting at the company's annual shareholders
meeting in Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent of votes. The
company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions and already
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prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee Raymond, saying
Raymond deserved the $357 million retirement package he received in January because he delivered record profits, and ‘led
this company through a lot of different business environments. We are clearly positioned better than our competitors, and you
have to give him credit.’” [Newsday, 6/1/06]
2006: Rex Tillerson On Exxon Mobil’s Giant Retirement Package To Outgoing CEO Lee Raymond: “I Don't Have
Any Regrets.” According to the Dallas Morning News, “Exxon Mobil Corp. shareholders showed their frustration
Wednesday with the giant retirement package given to former chief executive Lee Raymond. Only 79 percent of shareholders
of the world's largest public company voted for this year's slate of board members, who decide how much to pay executives.
For the last two years, the Exxon boards were elected by about 97 percent. And, for the first time ever, a shareholder
proposal received a majority of votes, at 52.2 percent. The proposal: It should take a majority of votes to elect board members
rather than just one yes vote. Current chief executive Rex Tillerson said the board will consider the proposal, but, on Mr.
Raymond's retirement pay, he said: ‘I don't have any regrets.’” [Dallas Morning News, 6/1/06]
Called Criticism of Raymond’s Package a “Distraction”
Rex Tillerson Called Discussion Over Whether Former Exxon CEO’s $400 Million Pay During His Final Year Was
Excessive A “Distraction.” According to NBC’s Today Show, “LAUER: Per--perhaps the poster child for all of this, and
especially in the public relations side of this, was the former CEO of ExxonMobil, Lee Raymond, who left the company I
think about a year ago, and according to the New York Times in his final year was paid something in the neighborhood of
$400 million. Is that an appropriate amount? Mr. TILLERSON: Well, it's a large amount of money, there's no question about
it. It comes at a time with these high prices where obviously it has drawn a lot of attention. I would say that that number's
been talked about in a number of different ways and involves a lot of deferred compensation which is still out in the future
yet--yet to be given to him. LAUER: But you understand when a family pulls up to the pump and they're seeing 60 cents more
this month... Mr. TILLERSON: And I--I do. LAUER: ...and they see the headline $400 million pay package, that--that rankles
them? Mr. TILLERSON: I do understand that. And it's--it has created a real distraction, I think, in this high-price
environment to dealing with the fundamental issues of why we have the high prices. That--that compensation is determined by
a committee of independent directors of the corporation who are responsible to the shareholders and the management have
no input to those packages.” [NBC’s Today Show, 5/3/06]
Auto Rescue
OPPOSED AUTO RESCUE
Rex Tillerson Was Against The Auto Bailout. According to Fox News, “CAVUTO: All right. I`m sorry. Does that mean
that you would have recommended against bailing out the auto companies, bailing out these banks? TILLERSON: Well, I -- I
have never favored bailing out, as you call it, particular business enterprises.” [Fox News’ Your World with Neil Cavuto,
3/5/09]
Rex Tillerson Suggested That As A “Free-Market Capitalist” He Doesn’t Think Industries Should Be Bailed Out
For Failing. According to Fox News, CAVUTO: What do you think about the -- the mentality that`s just the opposite out
today for scores of others industries, whether they be auto, or banking, financial, what have you, that are going to the
government, that are seeking taxpayer help and this sort of passing of the tin cup? TILLERSON: “Well, that`s a pretty broad
set you can get into, Neil. I`m -- you know, I am a free-market capitalist. I believe in risk- reward, that, when people take risk,
they should have the opportunity to reap the rewards. And, if the risks -- you know, if the risks don`t work out and they fail,
then they fail, and they have to move on and try something else, or let others come in and try in their place to do better. I
think there have been -- there`s a lot of steps that have been taken as we have gotten ourselves into this crisis that, when you
look backwards on those, I think a lot of us would question whether that was the prudent thing to do, if -- or if what we`re
really doing is putting off the inevitable and, in fact, creating obstacles to the next wave of innovation, because that`s one of
the ways the whole system improves itself, is to go through periods of failure, to eliminate the failed concepts or the out-ofdate
concepts, and make...” [Fox News’ Your World with Neil Cavuto, 3/5/09]
Rex Tillerson On Creative Destruction: “Because That`s One Of The Ways The Whole System Improves Itself, Is
To Go Through Periods Of Failure, To Eliminate The Failed Concepts Or The Out-Of- Date Concepts, And
Make.” According to Fox News, CAVUTO: What do you think about the -- the mentality that`s just the opposite out today
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for scores of others industries, whether they be auto, or banking, financial, what have you, that are going to the government,
that are seeking taxpayer help and this sort of passing of the tin cup? TILLERSON: “Well, that`s a pretty broad set you can
get into, Neil. I`m -- you know, I am a free-market capitalist. I believe in risk- reward, that, when people take risk, they should
have the opportunity to reap the rewards. And, if the risks -- you know, if the risks don`t work out and they fail, then they fail,
and they have to move on and try something else, or let others come in and try in their place to do better. I think there have
been -- there`s a lot of steps that have been taken as we have gotten ourselves into this crisis that, when you look backwards
on those, I think a lot of us would question whether that was the prudent thing to do, if -- or if what we`re really doing is
putting off the inevitable and, in fact, creating obstacles to the next wave of innovation, because that`s one of the ways the
whole system improves itself, is to go through periods of failure, to eliminate the failed concepts or the out-of- date concepts,
and make...” [Fox News’ Your World with Neil Cavuto, 3/5/09]
Yet Seemed To Support Bank Bailout
Rex Tillerson Suggested That Unlike The Auto Bailout He Supported The Bank Bailout. According to Fox News,
CAVUTO: “All right. I`m sorry. Does that mean that you would have recommended against bailing out the auto companies,
bailing out these banks?” TILLERSON: “Well, I -- I have never favored bailing out, as you call it, particular business
enterprises. Now, I think the question of what has happened with the banks and the financial markets is a much more
complicated question. And I know we could have a long conversation around how all of that happened and who is to blame
for setting the conditions around which that happened. But the problem is, once you have the problem, you have to deal with
it. And -- and the financial markets` state of -- of play and the condition they`re in, I think, obviously, because there is a
regulatory structure there, there were -- there were important steps that I think had to be taken. And I don`t want to represent
myself as some kind of financial expert around whether I think what`s been done was -- was necessarily the right thing at the
right time. But I view that as very differently from examining individual companies, business enterprises, who have made
decisions over the course of their business affairs over long periods of time that put themselves at risk of -- of failure, and --
and find themselves in a situation where, in fact, their business models are now failing.” [Fox News’ Your World with Neil
Cavuto, 3/5/09]
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EDUCATION
Section Overview:
Tillerson said the U.S. was spending the right amount of money on education, but not getting desired results.
Tillerson was a major proponent of STEM education, calling for a greater focus on it.
Tillerson “strongly” supported the Obama Administration’s race-to-the top initiative, and saying that Common Core was a
set of standards that every state should adopt. Tillerson was an ardent supporter of Common Core standards, praising it in
the business world, penning an op-ed about its benefits, and criticizing legislators who bashed it.
Education, Generally
TILLERSON APPROVED OF EDUCATION SPENDING, BUT NOT THE RESULTS
2013: Rex Tillerson Said Regarding Education In The U.S., “We're Spending The Right Amount Of Money. We're
Just Not Getting What We're Paying For.” According to the UT Alumni Business Conference, "We spend $60 billion a
year on education in this country. There's a lot of talk about how we have to spend more money. [Shakes head] We're
spending the right amount of money. We're just not getting what we're paying for. Not to point the finger at anybody, but we
have got to get inside of this problem and fix it. It's not going to be easy but you can't start until you start." [Rex Tillerson at
UT Alumni Business Conference, 2/21/13]
CHAIRMAN OF THE BUSINESS ROUNDTABLE'S EDUCATION & WORKFORCE
COMMITTEE
Rex Tillerson Was Chairman of The Business Roundtable's Education & Workforce Committee. “Mr. Tillerson is the
chairman and CEO of Exxon Mobil Corp. and the chairman of the Business Roundtable's Education & Workforce
Committee.” [“How to Stop The Drop in American Education,” Op-ed, Rex Tillerson, 9/5/13]
STEM Education
MAJOR PROPONENT OF STEM EDUCATION
Rex Tillerson Called For Increased Focus On Science, Technology, Engineering, And Math Education In K-12.
According to the Dallas Morning News, “While they were speaking, Business Roundtable released a survey completed by 126
CEOs who said their firms have 200,000 open jobs. Sixty percent require at least basic grounding in science, technology,
engineering or math. Forty-two percent require advanced training in science, technology, engineering or math - the STEM
fields. ‘It really does start in the K-through-12 level,’ Tillerson said. He said colleges and employers are forced to spend far too
much training new students or workers on skills they should have learned in high school. ‘I don't think the [K-12] schools
realize that we're their customer,’ he said. ‘They need to produce students with skills that allow them to get a job. If they don't,
they are essentially producing a defective product. And in this case, the product is a human being. It's tragic.’” [Dallas Morning
News, 12/4/14]
CHANGE THE EQUATION
Rex Tillerson Was On The Board Of Change The Equation, An Organization Committed To Improving STEM
Education. According to the Business Roundtable, “Mr. Tillerson is the vice chairman of the Ford’s Theatre Society, a past
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national president of the Boy Scouts of America and a former director of the United Negro College Fund. He is also a
member of the Chancellor’s Council, Development Board and the Engineering Advisory Board for the University of Texas at
Austin and the Society of Petroleum Engineers. He is also on the board of Change the Equation, an organization committed
to improving science, technology, engineering and math (STEM) education in the United States.” [Business Roundtable,
(accessed, 12/22/16)]
TILLERSON WAS NOT OPPOSED TO HIRING FOREIGN SCIENTISTS IF THE
U.S. EDUCATION SYSTEM FAILED TO FOSTER TALENT
Rex Tillerson Said That ExxonMobil Would Hire Scientists Overseas If The U.S. Failed To Produce Enough
Doctoral Graduates. According to Dallas Morning News, “As Texas politicians debate whether to reorient universities
toward teaching rather than research, the chief executive of Exxon Mobil Corp. gave a warning. Rex Tillerson said Thursday
that he employs 1,200 people with doctorates, and he relies on university research to push energy technology ahead. If Texas
or the U.S. cannot produce, he will turn elsewhere. ‘As a private-sector international global company, we’re going to go where
we can find the solution. We have to,’ he said during a panel discussion at the University of Texas sponsored by the Academy
of Medicine, Engineering and Science of Texas. ‘I hope we can find a lot of [scientists] here, because this has been the
foundation for us. This is still the place we go to for most of our academic talent, the United States,’ he said.” [Dallas Morning
News, 5/20/11]
Race to the Top
Rex Tillerson Said Exxonmobil “Strongly Support[s]” The Obama Administration’s Race To The Top Initiative.
According to the Education Nation Summit, “Regrettably, in the states that are pushing back. I think the genesis of this is
when the President--President Obama--and the Secretary of Education Arnie Duncan in the Race to the Top Initiative, which
we strongly support, adopted the common core state standard as the way to measure how are you doing in the race to the
top. The immediate reaction by some states was, 'wait a minute, Feds are trying to take over our educational system.' That is
just simply not true. It is absolutely not true. This is a set of standards that every state should adopt.” [Rex Tillerson,
Education Nation Summit, 10/10/13]
Common Core
MAJOR SUPPORTER AND BOOSTER OF COMMON CORE
Washington Post: “Exxonmobil’s Rex Tillerson Was A Big Booster Of Common Core.” According to the Washington
Post, “Rex Tillerson, chairman and chief executive of ExxonMobil who is being reported as President-elect Donald Trump’s
leading choice for secretary of state, was a prime mover of the Common Core State Standards Initiative in the business
world.” [“ExxonMobil’s Rex Tillerson was a big booster of Common Core,” Washington Post, 12/10/16]
Washington Post: Rex Tillerson “Was A Prime Mover Of The Common Core State Standards Initiative In The
Business World.” According to the Washington Post, “Rex Tillerson, chairman and chief executive of ExxonMobil who is
being reported as President-elect Donald Trump’s leading choice for secretary of state, was a prime mover of the Common
Core State Standards Initiative in the business world. The Washington Post is reporting that Trump has decided to name
Tillerson to the important post, though the nomination could face tough scrutiny in the Senate in part because of his close ties
to Russian President Vladimir Putin. Tillerson has infuriated public education advocates by saying that public schools ‘don’t
understand’ that the business community is their ‘customer’ and that they are ‘producing a product at the end of that high
school graduation.’ He further said, ‘Now, is that product in a form that we, the customer, can use it? Or is it defective, and
we’re not interested?’” [“ExxonMobil’s Rex Tillerson was a big booster of Common Core,” Washington Post, 12/10/16]
Rex Tillerson Gave Speeches Promoting Common Core And Lobbied Politicians To Stick To The Policy.
According to the Washington Post, “Tillerson gave speeches promoting the [common] core — and he lobbied policymakers in
states to stick with the core when some began to back away during a revolt from across the political spectrum against the
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initiative. For example, in a 2013 letter to leaders of Pennsylvania’s state legislature and then-Gov. Tom Corbett (R), Tillerson
went as far as reminding them of the ‘significant operations’ ExxonMobil had in Pennsylvania.” [“ExxonMobil’s Rex
Tillerson was a big booster of Common Core,” Washington Post, 12/10/16]
Fortune Magazine Noted That The Business Roundtable And Its Education Chair, Rex Tillerson, “Played A
Particularly Prominent Role” Promoting Common Core. “According to Fortune, “Organizations such as the Business
Roundtable have devoted considerable effort to [Common Core]. The education chair for that association of CEOs, Exxon
Mobil XOM 0.39% chief Rex Tillerson, has played a particularly prominent role. A stern, commanding figure with an Old
Testament glare and a chewy Texas drawl, Tillerson is an unlikely person to lead a campaign of persuasion. (Never a fan of the
press, he declined to speak to Fortune for this article.) But Tillerson has taken on the challenge with trademark intensity. He
has pressed other CEOs to join the cause, spread the word by appearing at education summits, underwritten TV
advertisements, and personally called legislators in multiple states to press for their support. His company went so far as to cut
off campaign contributions to some politicians—even those who support the oil and gas industry—who spurned Tillerson’s
entreaties on Common Core.” [Fortune, 12/23/15]
Rex Tillerson Called The Notion Common Core Was The Federal Government “Trying To Take Over Our
Education System,” “Absolutely Not True.” According to the Education Nation Summit, “Regrettably, in the states that
are pushing back. I think the genesis of this is when the President--President Obama--and the Secretary of Education Arnie
Duncan in the Race to the Top Initiative, which we strongly support, adopted the common core state standard as the way to
measure how are you doing in the race to the top. The immediate reaction by some states was, 'wait a minute, Feds are trying
to take over our educational system.' That is just simply not true. It is absolutely not true. This is a set of standards that every
state should adopt.” [Rex Tillerson, Education Nation Summit, 10/10/13]
Penned 2013 Wall Street Journal Op-ed Defending Common Core
Rex Tillerson Called “On Leaders From Government And Business, And Parents, Need To Defend The Common
Core State Standards,” Which Are “Increasingly Under Attack From Across The Political Spectrum.” According to
the Washington Post, “As a nation, we must unite in recognizing the mounting evidence that the U.S. is falling behind
international competitors in producing students ready for 21st-century jobs. According to the most recent Program for
International Assessment, U.S. students rank 14th in the world in reading, 17th in science and 25th in math—and the trend
line is moving in the wrong direction. We have an opportunity to reverse this trend but it will take setting the right priorities.
That starts with establishing high standards. It means leaders from government and business, and parents, need to defend the
Common Core State Standards, which have been adopted wholly or in part by dozens of states in recent years but are
increasingly under attack from across the political spectrum.” [“How to Stop The Drop in American Education,” Op-ed, Rex
Tillerson, 9/5/13]
Rex Tillerson Said Criticism That Common Core Was “Takeover Of Local Schools By Big Government”
“Misguided.” According to the Washington Post, “These voluntary, state-driven standards are a set of expectations for the
knowledge and skills that students from kindergarten to 12th grade need to master for college and career readiness. Some
oppose the standards, complaining that they undermine the autonomy of teachers; others decry the standards as a takeover of
local schools by big government. The criticism is misguided. The Common Core State Standards are based on the best
international research. They are built on the standards used by the most effective education systems around the world,
including Singapore, Finland, Canada and the U.K. The standards are also designed to allow each state to make its own
decisions regarding the curriculum, technology and lesson plans to be used in local schools. In other words, the standards
stipulate what we want all students to know and be able to do, but each state retains the explicit authority to determine how it
teaches its students. The standards are a tool to help educators, not a straitjacket for them.” [“How to Stop The Drop in
American Education,” Op-ed, Rex Tillerson, 9/5/13]
Rex Tillerson Called Common Core “The Path To Renewed Competitiveness” And Said “To Abandon The
Standards Is To Endanger America's Ability To Create The Technologies That Change The World For The Better.”
“According to the Washington Post, “A major benefit of the Common Core State Standards is that they encourage students to
analyze and apply critical reasoning skills to the texts they are reading and the math problems they are solving. These are the
capabilities that students need as they prepare for high-skill jobs. We need to raise expectations at every grade level so that, for
instance, students who do well in math in lower grades are spurred to take algebra and more advanced math. But we need high
standards to drive efforts to improve educational outcomes in every subject. With these education standards under attack in
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many states where they have been adopted or are being considered, the Common Core needs support now more than ever if
America is going to reverse its education decline and prepare its young people to compete in today's dynamic global economy.
To abandon the standards is to endanger America's ability to create the technologies that change the world for the better. The
Common Core State Standards are the path to renewed competitiveness, and they deserve to be at the center of every state's
effort to improve the education—and future—of every American child.” [“How to Stop The Drop in American Education,”
Op-ed, Rex Tillerson, 9/5/13]
Criticized Texas’ Elected Leaders For Bashing Common Core
Rex Tillerson Said He Was “Extraordinarily Disappointed In My Home State” Over Texas Elected Officials
Distorting Common Core. According to the Dallas Morning News, “The CEO of Texas' largest company said Wednesday
that elected leaders in his state and elsewhere have badly distorted a nationwide push for common academic standards for
public schools, bashing the so-called Common Core curriculum even as U.S. students and workers alike fall further behind
their global peers. ‘I'm extraordinarily disappointed in my home state,’ Rex Tillerson, chairman and chief executive of Irvingbased
Exxon Mobil, said during a quarterly meeting of Business Roundtable. He and other CEOs were highlighting what
business leaders have called a major impediment to hiring: the lack of technical skills among job-seekers of all ages.” [Dallas
Morning News, 12/4/14]
Rex Tillerson Said Common Core Was Not Federal Overreach And Believed National Academic Standards Were
Necessary. According to the Dallas Morning News, “Texas Gov. Rick Perry has routinely touted Texas' refusal to adopt the
standards. U.S. Sen. Ted Cruz, R-Texas, has said the standards intrude on local decision-making and should be abolished
everywhere. But Tillerson said the standards are embraced in 40 states and are badly needed. He said they merely set minimum
standards in key academic areas. States and school districts decide how and what students are actually taught, he said. ‘Some
have found it opportunistic’ to paint Common Core as an example of federal overreach, he said. ‘But what the common core
is not is a mandate on your curriculum. And yet it has been described as the federal government telling you what you will
teach. It is anything but that.’” [Dallas Morning News, 12/4/14]
221

ENERGY AND THE ENVIRONMENT
Section Overview:
Under Tillerson, Exxon Mobil routinely funded climate change denialist think tanks, like the Competitive Enterprise
Institute and the Advancement of Sound Science Coalition, an organization originally formed by Philip Morris to push
back against scientific conclusions that second hand smoke caused cancer. In 2008, following backlash from Exxon
shareholders and the public, the company promised to stop funding climate denial research; however, the company
continued to fund such research for at least two years.
In 2015, New York State investigated Exxon for misleading the public on climate change.
Following efforts to reform Exxon Mobil’s image, in 2007 Tillerson acknowledge human impacts of climate change, but
claimed that existing policy proposals to address it were too “simplistic” and anything short of a global agreement to
reduce greenhouse gas emissions would do more harm than good.
Following the BP Horizon Deepwater oil spill, Tillerson criticized the company for making the decision to build a well in
the Horizon Deepwater area, and acknowledged that Exxon and other companies as company policy did not have
adequate means for controlling spills when they occurred. Despite this admission, Tillerson opposed the ban on deepwater
drilling.
Tillerson is a frequent and outspoken critic of calls to support American Energy Independence, going so far as to side
with Saudi Arabia after the country lodged a formal complaint over President George W. Bush’s call to reduce American
dependence on foreign oil. Tillerson claimed President Bush objective was “misguided,” and called for increase
interconnectedness of global oil markets.
In 2006, Tillerson—who has repeatedly supported opening up federal lands and waters to oil exploration and drilling—
acknowledged that doing so would result in more “mishaps,” but that we would be able to “mitigate the effects and move
on.”
As CEO of Exxon, Tillerson opposed subsidies supporting alternative energy development.
As CEO of Exxon—which invested heavily in natural gas—Tillerson repeatedly opposed regulations on hydraulic
fracking and claimed that claims of water contamination were a “manufactured fear” perpetuated by the media. Tillerson
claimed instances of water contamination blamed on fracking actually came from suburban development and old water
wells dug in the 1920’s.
Alternative Energy, Generally
OPPOSED ALTERNATIVE ENERGY SUBSIDIES AND PUBLIC INVESTMENT IN
RENEWABLES
2013: Opposed Government Subsidies To Support Alternative Energy
Rex Tillerson Criticized Government Subsidies And Intervention In Pursuit Of Alternative Energy. According to the
Charlie Rose Show, “CHARLIE ROSE: So you are saying you want to see government plant more seed money in terms of an
investment, of the alternative possibilities. REX TILLERSON: And there are good models for this. There are good models in
the national labs. There are great models through Darfa. There are models out there that have served us well. CHARLIE
ROSE: It gave us the Internet. REX TILLERSON: We just -- we have -- we have so much intervention right now in these
energy markets that in my view it`s not been healthy for the advancement of those alternatives. CHARLIE ROSE: You`re
saying less regulation and more research. REX TILLERSON: More fundamental research, less mandates, I mean wind has
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eceived subsidies for more than 20 years now. Maybe if we took the subsidy off and it was challenged and had to perform,
people would take it to a new level. They haven`t had to. They haven`t had to.” [Charlie Rose Show, 3/7/13]
2008: Opposed Taxes On Oil Companies To Finance Alternative Energy Research
Note: For more information, see the Tax Section.
Rex Tillerson Said A Windfall Profits Tax On Oil Companies To Finance Research Into Alternative Fuels Was
Unfairly Targeting A Specific Industry And Would Be A Disaster. According to The New York Times, “Q.Would it be
wrong then for government to tax windfall profits to finance research into alternative fuels? A. Why would you want to tax
windfall profits to do so? Why target a specific industry when you are looking to raise revenue? The last time government
taxed windfall profits, it was a disaster. Why would you want to do so again? Any taxing program that targets a specific
industry is never a very good idea.” [The New York Times, 7/19/08]
UNDER TILLERSON, EXXONMOBIL SPURNED INVESTMENT IN
ALTERNATIVE ENERGY
Exxon Mobil Did Not Invest Significantly In Renewable Energy
Exxon Mobil Failed To Follow Other Large Oil Companies In Significantly Investing And Exploring Renewables
And Alternative Energy Sources. According to the International Herald Tribune, “But with gasoline prices soaring and
concern growing over global warming, Exxon, the biggest of the investor-owned oil companies, is a target for politicians and
environmentalists. Chevron, BP and Shell, Exxon’s largest competitors, have given their investments in renewable fuels a
much higher profile. Similar or identical environmental proposals have failed at Exxon shareholder meetings, but the public
support of the Rockefeller family has given old efforts new energy.” [International Herald Tribune, 5/28/08]
Independent: Under Tillerson, Exxon Argued That “Throwing Money At Alternative Energy Is A Foolish Way To
Deal With The Immediate Threat Of Climate Change.” According to the Independent, “But in the end, the family's
proposal that Exxon set explicit goals for carbon emissions from its operations and from the burning of its products - which,
if tough enough, would force it to develop alternative energy technologies - won only 31 per cent of the shareholder vote. A
proposal to force Mr Tillerson to split his two roles won 40 per cent, no more than in previous years. Exxon's case is that
throwing money at alternative energy is a foolish way to deal with the immediate threat of climate change. Instead, it is
focusing on reducing greenhouse gas emissions from its own operations, and from developing new oil-based products that
reduce the environmental impact of consumers' energy use.” [Independent, 5/29/08]
Tillerson Resisted The Obama Administration’s Push To Increase Investment In Alternative Energy
2009: Rex Tillerson Adamantly Resisted The Progressive Obama Energy Agenda, Arguing “Nothing Has Really
Changed” For Exxon Mobil’s Pursuit Of Fuel Sources Despite Obama’s Proposal For $150 Billion Investment In
Alternatives. According to The New York Times, “‘In my view, nothing has really changed,’ Rex W. Tillerson, the chief
executive of Exxon Mobil, said after the election of President Obama. ‘We don’t oppose alternative energy sources and the
development of those. But to hang the future of the country’s energy on those alternatives alone belies reality of their size and
scale.’ The administration wants to spend $150 billion over the next decade to create what it calls ‘a clean energy future.’ Its
plan would aim to diversify the nation’s energy sources by encouraging more renewables, and it would reduce oil consumption
and cut carbon emissions from fossil fuels.” [The New York Times, 4/8/09]
Alternative Energy Investment Did Not “Interest” Tillerson
2006: Rex Tillerson On Exxon Investing In Alternative Energy: “To Just Move Into Another Commodity Business
For The Sake Of Owning That Commodity Isn't Particularly Interesting To Me.” According to the Dallas Morning
News, “Mr. Tillerson made it clear he doesn't plan radical changes to the company's way of doing business. […] Will Exxon
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invest in alternative fuels? ‘For today, we see a rich portfolio of opportunity in oil and gas, which will continue to be in
demand,’ he said. ‘That doesn't mean we won't keep our eyes open for areas that we can add value. But to just move into
another commodity business for the sake of owning that commodity isn't particularly interesting to me.’” [Dallas Morning
News, 3/9/06]
Rex Tillerson Was Described By One Energy Executive As “More Inflexible” Than His Predecessor When It Came
To Investing Record Profits In Research And Development Of Alternative Fuels. According to The New York Times,
“During the tenure of Lee R. Raymond, who ran the company from 1993 to 2005, Exxon became the lightning rod in the
debate about climate change. Throughout the 1990s, the company was vilified by environmental groups and scientists for
questioning the impact of human activities -- especially the use of fossil fuels -- on global warming. Gingerly, over the last
three years, Exxon has moved away from its extreme position. It stopped financing climate skeptics this year, and has sought
to soften its image with a $100 million advertising campaign featuring real company executives, scientists and managers. One
of the ads said the company aimed to provide energy ‘with dramatically lower CO2 emissions.’ The company has
acknowledged that climate change is a risk to the world. In a speech given before the Royal Institute of International Affairs in
London last year, Mr. Tillerson said policy makers should consider setting a carbon tax or a plan that limits carbon emissions
through a cap-and-trade sys-tem. But while Exxon is slowly unshackling itself from Mr. Raymond’s stance on global warming,
it remains faithful to his legacy by dismissing most green alternatives and sticking with hydrocarbons. Although the company’s
tone has changed, its strategy has not. Despite growing pressures on oil companies to invest in alternative energy, Exxon’s
long-term view remains unapologetically tied to fossil fuels. ‘Rex looks more approachable than his predecessor,’ says a rival
executive who requested anonymity because he did not want to jeopardize his relationship with Mr. Tillerson, ‘but he is more
inflexible.’” [The New York Times, 11/16/08]
2006: Tillerson Claimed That Only Natural Gas Was Currently Worth The Investment
2006: Rex Tillerson Stated There Were No Alternative Sources Of Energy Currently Available That Would Provide A
Meaningful Alternative To Natural Gas And Therefore Worthy Of Exxon’s Investment. According to NBC’s Today
Show, “LAUER: I know you competition has invested heavily in some of these renewable sources of energy. Has Exxon done
the same thing in terms of investment? Mr. TILLERSON: We're investing in a lot of technology for breakthroughs in
alternative energy. Some of our competition is investing in alternatives that are available today. We do not see any of those
alternatives as providing a meaningful alternative to all the natural gas in the near term or the long term. What we do think is
needed are some breakthroughs in the technology, so we've chosen to invest in technology that will, we hope, lead to some
meaningful alternatives down the road. LAUER: Two quick things. Are we going to run out of oil someday?” [NBC’s Today
Show, 5/3/06]
Natural Gas Week: “Exxon Chief Executive Rex Tillerson Is On Record As Doubting Whether Biofuels Will Be
Commercially Viable For Another Quarter-Century.” According to Natural Gas Week, “Nonetheless, Exxon questions
the near-term commerciality of biofuels. Exxon Chief Executive Rex Tillerson is on record as doubting whether biofuels will
be commercially viable for another quarter-century. Algae biofuels research and development could take decades or more to
potentially reach a scale that would significantly benefit the transportation fuels sector, Englemann said.” [Natural Gas Week,
6/24/13]
However, Exxon Mobil Made Some Investments In Algae Biofule Research And Increased Investment In
Natural Gas
2009: Forbes Praised Exxon’s Clean Energy Initiatives, Including A $600 Million Investment In Algae Biofuel
Research And Increased Investment In Natural Gas. According to Forbes, “There are two ways for a big oil company to
go green. There is the political approach and there is the engineer’s approach. ExxonMobil uses both. Purely political: the
grand announcement in July that ExxonMobil would put $600 million into algae farms that would turn sunlight into
automotive fuel. It takes a leap of faith to think tanks of algae can compete with oil wells, even allowing for the advantage that
biofuels would have in a world of carbon permits (or carbon taxes). But the algae project buys ExxonMobil some peace with
environmentalists. Since taking the helm in 2006, ExxonMobil boss Rex W. Tillerson has worked hard to soften the
company’s stance on climate change; he is not as gruff and forceful as his predecessor Lee R. Raymond in dismissing globalwarming
alarmists. The engineering solution to the matter of carbon in the atmosphere: Drill for natural gas. Per unit of
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energy delivered, methane releases 40% to 50% less carbon dioxide than coal and a quarter less than petroleum. Coal fuels half
of U.S. power generation. Replacing all of it with methane would cut CO2 emissions by 1 billion tons a year. Could windmills
come close to that in reducing greenhouse gases? Not easily. To get the same emissions reduction you would have to replace
half of power plant coal with 80,000 giant turbines covering 400,000 acres of ground. ‘Natural gas is the answer to greenenergy
low-carbon concerns,’ says Neil Duffin, president of ExxonMobil’s project development company.” [Forbes, 8/24/09]
FOSTERED DOUBT ABOUT THE VIABILITY OF ALTERNATIVE ENERGY
Exxon And Tillerson Pushed The View That Fossil Fuels Were Necessary
Rex Tillerson: “The World Is Going To Have To Continue Using Fossil Fuels, Whether They Like It Or Not.”
According to the Telegraph, “'The world is going to have to continue using fossil fuels, whether they like it or not." There's
little disguis-ing the defiance in the words of Exxonmobil chief Rex Tillerson. In a Dallas concert hall, less than six months
after the historic global climate deal in Paris, the long-standing leader of the world's largest listed oil company locked horns
with shareholders in an increasingly familiar battle for Big Oil.” [Telegraph, 6/12/16]
2015: Rex Tillerson Said Exxon Predicts That About 80 Percent Of The World's Energy Will Still Come From Fossil
Fuels In 2045.” According to the Dallas Morning News, “At the IHS CERA Week conference in Houston last month, Exxon
CEO Rex Tillerson was asked about the possibility of a carbon bubble during a question-and-answer session. He said Exxon
predicts that about 80 percent of the world's energy will still come from fossil fuels in 2045.” [Dallas Morning News, 5/17/15]
Exxon Repeatedly Espoused Its View That Oil And Gas Would Undoubtedly Drive The Energy Economy Until
2030 And Beyond, And Raised Doubts About The Potential Of Alternative Energy Sources. According to Private
Empire: ExxonMobil and American Power, “With Dan Nelson seated beside him, Lee Raymond told Hubbard that ExxonMobil
had recently completed a detailed analysis of the world’s energy economy, looking out at the next twenty-five years. The
forecast made clear, Raymond said, that much of the popular debate about trans­ formational alternative energy sources was
misinformed-it was laced with unrealistic fantasies about the pace at which the world’s energy economy would or could
change. Oil and gas were here to stay, Exxon­ Mobil’s economists and planners had concluded; fossil fuels would be central to
global economics and security until 2030 and beyond. Raymond sought to brief this forecast to as many staff in the Bush
administration and Congress who would listen. Raymond and Nelson offered to bring one of the ExxonMobil forecast’s
authors, Scott Nauman, to Washington to present the findings in detail to White House policymakers. Hubbard agreed; he
asked Vice President Cheney’s energy aide F. Chase Hutto III to make the arrangements. The next day, Hutto fired off e-mails
to schedule ExxonMobil briefings for White House aides, environmental policy­ makers, and officials at the National Security
Council.2” [Private Empire: ExxonMobil and American Power, pg. 304-305, 2012]
An Obama Administration Official Claimed Exxon Took An Unusual Stance Of “Fuck You, No Apologies, Oil-Is-Here-To-Stay
Mode”
Obama Administration Adviser On Exxon’s Climate Change Stance: Exxon Was Constantly In A “Fuck You, No
Apologies, Oil-Is-Here-To-Stay Mode.” According to Private Empire: ExxonMobil and American Power, “ExxonMobil
stood apart. The corporation, said a second Obama adviser involved, ‘seemed to me to follow a track that was quite
different from the other [oil] majors-being firmly fixed in the ‘Fuck you, no apologies, oil-is-here-to-stay mode.’” [Private
Empire: ExxonMobil and American Power, pg. 541, 2012]
Tillerson Argued Against Regulations Designed To Increase Reliance On Alternative Energy, Claiming
They Were Not Grounded In “Reality”
Rex Tillerson Lamented The Long And Costly Process Of Developing New Clean Energy, Arguing that “Policy
Has To Be Grounded In Reality.” According to BBC Monitoring Asia Pacific - Political, “Exxon-Mobil chief executive
and chairman Rex Tillerson said, however, that the development and deployment of clean energy technology would be a long
and costly process -much longer than policymakers think. ‘Policy has to be grounded in reality,’ he said, arguing that the
consequences of policies to curb emissions must be taken into account by officials.” [Bbc Monitoring Asia Pacific - Political,
11/15/09]
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Called on Oil and Gas Industry to Debunk Myth That Alternative Sources of Energy Could Meet Global
Demand
2004: Rex Tillerson Said That The Oil And Gas Industry Must Debunk The Myth That Alternative Sources Of
Energy Could Satisfy Energy Demand, Explaining, “That Silver Bullet In Not Realistic.” According to Platts Oilgram
News, “Of more importance to ExxonMobil and other Western oil companies, however, is the eventual role for foreign
investors, and he said: ‘The answer is not real clear yet. They know they need foreign participation. It's just a question of
letting them sort that out.’ Outlining projections for global energy needs, he warned economic growth will outpace annual
energy demand growth of 2% but assured the audience oil and gas resources exist worldwide to meet the need. While saluting
the potential growth for contributions from wind and solar power, Tillerson dismissed the final impact of their role, saying
they can provide only about 1% of world energy needs by 2030. As a result, he said the traditional oil and gas industry must
meet the challenge and debunk the myth that other sources of energy will fill the void. ‘That silver bullet in not realistic,’ he
said.” [Platts Oilgram News, 12/9/04]
Tillerson Claimed Biofuels, Alternative Energy Sources Capabilities Would Be Limited Far Into The
Future
2007: Rex Tillerson On The Role Of Biofuels In The Future: “But It's Going To Be Limited In Terms Of The Scale
Of The Capabilities, Absent Some Significant Technology Breakthroughs.” According to The LA Times, “But he also
offered a cautious view on biofuels such as ethanol and biodiesel. Such renewable fuels are being touted in many circles as the
best near-term hope for reducing carbon emissions from gasoline and diesel. ‘I'm not an expert on biofuels. I don't know
much about farming, and I don't have a lot of technology I can add to moonshine,’ Tillerson told his audience with a laugh.
‘I'm not at all trivializing the important role that biofuels will play. But it's going to be limited in terms of the scale of the
capabilities, absent some significant technology breakthroughs.’ For that reason, he added, ‘the important thing is that the
public and policymakers be realistic about the role that biofuels will play and not get ourselves into wishful thinking.’” [LA
Times, 2/14/07]
2004: Tillerson Claimed It Would Take Wind And Solar Until 2030 To Meet Just 1 Percent Of The World’s Energy Needs
2004: Rex Tillerson Claimed Wind And Solar Power Could Only Meet 1% Of World Energy Demand By 2030.
According to Platts Oilgram News, “Of more importance to ExxonMobil and other Western oil companies, however, is the
eventual role for foreign investors, and he said: ‘The answer is not real clear yet. They know they need foreign participation.
It's just a question of letting them sort that out.’ Outlining projections for global energy needs, he warned economic growth
will outpace annual energy demand growth of 2% but assured the audience oil and gas resources exist worldwide to meet the
need. While saluting the potential growth for contributions from wind and solar power, Tillerson dismissed the final impact
of their role, saying they can provide only about 1% of world energy needs by 2030. As a result, he said the traditional oil and
gas industry must meet the challenge and debunk the myth that other sources of energy will fill the void. ‘That silver bullet in
not realistic,’ he said.” [Platts Oilgram News, 12/9/04]
2007: Tillerson Claimed Energy Alternatives Would Amount For Only 2 Percent Of The World’s Energy Needs By 2030
2007: Rex Tillerson: “Even With Double Digit Growth In [Energy] Alternatives, Those Alternatives Will Account
For No More Than 2 Per Cent In 2030.” According to the Irish Times, “Chairman and chief executive of Exxon Rex
Tillerson said ultimate responsibility for controlling CO2 emissions lay with consumers of energy. ‘You can't talk about climate
change without putting in the context of energy consumption . . . You can look at almost any forecast and in the year 2030
that consumption is going to grow by 50 per cent.’ Mr Tillerson said alternative energy sources would not provide a
meaningful substitute in the foreseeable future. ‘Even with double digit growth in alternatives, those alternatives will account
for no more than 2 per cent in 2030.’” [Irish Times, 1/26/07]
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Tillerson Admitted A Switch To Alternative Energy Was Inevitable, But Claimed It Would Take 30 Years
For The Technology To Make It A Viable Option
2006: Rex Tillerson: “What I Know Is, The Day I Die, I'll Probably Get Driven To My Funeral In Something That
Uses Hydrocarbons.” According to the Dallas Morning News, “Exxon Mobil Corp. chief executive Rex Tillerson fully
expects the world to switch to some form of energy other than oil. But getting there will take at least 30 years, even if
scientists come up with a breakthrough tomorrow that would make an alternative fuel financially viable. That's why Exxon
isn't investing in alternative fuels, though the company is funding research on biofuels and hydrogen energy, Mr. Tillerson
said. ‘What I know is, the day I die, I'll probably get driven to my funeral in something that uses hydrocarbons,’ Mr. Tillerson,
54, said in an interview with The Dallas Morning News.” [Dallas Morning News, 5/30/06]
ADVOCATED INVESTMENT IN FOSSIL FUEL EFFICIENCY OVER
ALTERNATIVE ENERGY TO ADDRESS CLIMATE CHANGE
Rex Tillerson Supported Research Into Making Fossil Fuels More Efficient And Opposed Significant Investment In
Alternative Energy Sources That Could Be More Environmentally Friendly. According to The New York Times,
“Q.You were an early critic of biofuels, and you once referred to ethanol as ‘moonshine.’ What role do you see for alternative
fuels, including ethanol? A. There is no question in my mind that we will develop a replacement fuel for conventional motor
gasoline. But we will also develop other ways to use fossil fuels for transportation that are more efficient and more
environmentally friendly. We’ve made the point that we’re spending our time and effort to look at what is the next
technological leap for transportation fuels, and what are the technologies that Exxon possesses that can contribute to that
breakthrough.” [The New York Times, 7/19/08]
Rex Tillerson On Alternative Energy: “‘Our Approach To Alternative Energy In The Near Term Is Alternative Ways
To Consume Fossil Fuels’ More Efficiently.” According to The Dallas Morning News, “Some energy companies are
investing in alternative fuels. Exxon is turning to developing countries, where gasoline demand is expected to rise as people
move out of poverty. Investors at the company’s annual shareholder meeting Wednesday discussed whether Exxon should
invest in renewable energy. ‘Half a billion people have moved out of abject poverty to a minimum acceptable standard of
existence, and that’s due to energy,’ Tillerson said to the crowd of investors gathered at the Meyerson Symphony Center,
adding that the world will continue to rely on fossil fuels for decades to come. ‘Our approach to alternative energy in the near
term is alternative ways to consume fossil fuels’ more efficiently, he said.” [The Dallas Morning News, 5/28/09]
Energy Efficiency
TILLERSON FAVORED INCREASING ENERGY EFFICIENCY TO REDUCE
EMISSIONS OVER INCREASING ALTERNATIVE ENERGY OPTIONS
Rex Tillerson On Alternative Energy: “‘Our Approach To Alternative Energy In The Near Term Is Alternative Ways
To Consume Fossil Fuels’ More Efficiently.” According to The Dallas Morning News, “Some energy companies are
investing in alternative fuels. Exxon is turning to developing countries, where gasoline demand is expected to rise as people
move out of poverty. Investors at the company’s annual shareholder meeting Wednesday discussed whether Exxon should
invest in renewable energy. ‘Half a billion people have moved out of abject poverty to a minimum acceptable standard of
existence, and that’s due to energy,’ Tillerson said to the crowd of investors gathered at the Meyerson Symphony Center,
adding that the world will continue to rely on fossil fuels for decades to come. ‘Our approach to alternative energy in the near
term is alternative ways to consume fossil fuels’ more efficiently, he said.” [The Dallas Morning News, 5/28/09]
Rex Tillerson Defended Exxon Mobil’s Failure To Invest In Alternative Energy And Argued Energy Efficiency Was
The Best Way To Address Environmental Concerns. According to the Dallas Morning News, “This time, the leader of the
oil giant took the unusual step of outlining specifics of Exxon's environmental investment strategy, focused on fuel efficiency.
In the past, he's simply said that Exxon specializes in oil and that alternative fuels don't make much money. Mr. Tillerson
stopped short of promising to invest anytime soon in fuel other than oil and gas. ‘It is important to note that the way to
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deliver meaningful environmental improvements in the short term is to improve the efficiency by which we use traditional
fuels,’ Mr. Tillerson told shareholders at the Meyerson Symphony Center.” [Dallas Morning News, 5/29/08]
Rex Tillerson: “We Have The Same Concern As People Around The World - To Provide The World With Its Energy
Needs While Reducing Harmful Emissions.” According to the Guardian, “Rex Tillerson, chairman and chief executive,
said he took critics seriously and insisted Exxon was aware of the threat of climate change: ‘We have the same concern as
people around the world - to provide the world with its energy needs while reducing harmful emissions.’ But Tillerson
repeated Exxon's mantra that the demand for energy was set to rise 40% by 2030 and that oil and gas would have to meet 60%
of this. Arguing that renewables lacked technological scale, he said ‘meaningful environmental improvements’ would come
from more efficient ways of delivering existing fuels.” [Guardian, 5/29/08]
TILLERSON SUPPORTED RESEARCH TO MAKE FOSSIL FUELS MORE
EFFICIENT
Rex Tillerson Supported Research Into Making Fossil Fuels More Efficient And Opposed Significant Investment In
Alternative Energy Sources That Could Be More Environmentally Friendly. According to The New York Times,
“Q.You were an early critic of biofuels, and you once referred to ethanol as ‘moonshine.’ What role do you see for alternative
fuels, including ethanol? A. There is no question in my mind that we will develop a replacement fuel for conventional motor
gasoline. But we will also develop other ways to use fossil fuels for transportation that are more efficient and more
environmentally friendly. We’ve made the point that we’re spending our time and effort to look at what is the next
technological leap for transportation fuels, and what are the technologies that Exxon possesses that can contribute to that
breakthrough.” [The New York Times, 7/19/08]
Rex Tillerson On Alternative Energy: “‘Our Approach To Alternative Energy In The Near Term Is Alternative Ways
To Consume Fossil Fuels’ More Efficiently.” According to The Dallas Morning News, “Some energy companies are
investing in alternative fuels. Exxon is turning to developing countries, where gasoline demand is expected to rise as people
move out of poverty. Investors at the company’s annual shareholder meeting Wednesday discussed whether Exxon should
invest in renewable energy. ‘Half a billion people have moved out of abject poverty to a minimum acceptable standard of
existence, and that’s due to energy,’ Tillerson said to the crowd of investors gathered at the Meyerson Symphony Center,
adding that the world will continue to rely on fossil fuels for decades to come. ‘Our approach to alternative energy in the near
term is alternative ways to consume fossil fuels’ more efficiently, he said.” [The Dallas Morning News, 5/28/09]
Cap And Trade
TILLERSON FLIPPED ON HIS EARLIER SUPPORT FOR A CAP AND TRADE
SYSTEM
2007: Support For An Upstream Cap-And-Trade System Or Carbon Tax
2007: Rex Tillerson Suggested A Cap-And-Trade System Or A Carbon Tax Were Effective Methods To Reduce
Carbon Emissions In A “Uniform And Predictable Way.” According to Platts Oilgram News, “Tillerson suggested that
other policy mechanisms such as an up-stream cap-and-trade system or a carbon tax might be more effective. An upstream
cap-and-trade system, whereby a limit is placed on carbon at the point where the fuel enters the commercial world rather than
at the point of emission, would be more efficient and simple, reducing the number of regulated entities and providing a carbon
cost, he said. ‘Similarly, a carbon tax could enable the cost of carbon to be spread across the economy as a whole in a uniform
and predictable way,’ he said. Tillerson said he had not concluded what was the best way to manage the cost of carbon in the
future but that one advantage of a carbon tax was that ‘every country can put that tax in place, suitable to their economic
growth.’” [Platts Oilgram News, 6/25/07]
2010: Opposed All Cap And Trade Proposals
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2010: Rex Tillerson Opposed The Waxman-Markey Bill And Any Proposals For Cap-And-Trade. According to a
Hearing on the ExxonMobil-XTO Merger, “BARTON: Thank you. Because of my good friend Mr. Inslee's question about
climate change, I have to have somewhat of a rebuttal to that. Mr. Tillerson, what is ExxonMobil's position on the Markey-
Waxman bill as it passed the House? Do you all support it, or oppose it? TILLERSON: Well, we oppose the Waxman-
Markey bill because we -- we are opposed to cap-and-trade systems as policy options. We do not feel that they are the most
cost-effective way to put in place the proper incentives for people to be more efficient... (CROSSTALK).” [Rep. Edward J.
Markey Holds a Hearing on the ExxonMobil-XTO Merger, 1/20/10]
2015: Tillerson Claimed That U.S. Companies Reduced Carbon Emissions Without Carbon Pricing
System
Rex Tillerson Said That The U.S.’ Reduction Of Carbon Emissions With “No Comprehensive Cost Of Carbon
Policy” Prompted ExxonMobil Not To Sign A Letter On Carbon Pricing Backed By European Oil Companies.
According to Platts Oilgram News, “ExxonMobil did not sign the letter on carbon pricing backed by six its European oil
majors because it has its own ‘more nuanced’ position on climate change, the head of ExxonMobil's gas and power marketing
unit told the Conference. Indeed, Tillerson said that US carbon emissions had dropped back to 1990s levels alongside
economic and population growth thanks to shale gas, with ‘no comprehensive cost of carbon policy’ in place.” [Platts Oilgram
News, 6/3/15]
Carbon Tax
2009 - 2016: SAID CARBON TAX WOULD BE PREFERABLE TO CAP AND TRADE
Tillerson Believed A Carbon Tax Would Be “More Transparent” And “Effective” Than Cap And Trade
Rex Tillerson: “A Carbon Tax Strikes Me As A More Direct, A More Transparent And A More Effective Approach”
Than A Cap-And-Trade System. According to the Washington Post, “In 2009, Exxon Mobil chief executive Rex Tillerson -
in part to slow momentum toward a cap-and-trade system for reducing greenhouse-gas emissions - endorsed the carbon tax
and said it should be set ‘somewhere north of’ $20 a ton. ‘As a businessman it is hard to speak favorably about any new tax.
But a carbon tax strikes me as a more direct, a more transparent and a more effective approach,’ he said at the time. He added
that ‘a carbon tax is also the most efficient means of reflecting the cost of carbon in all economic decisions - from investments
made by companies to fuel their requirements to the product choices made by consumers.’” [Washington Post, 11/10/12]
Tillerson Believed A Carbon Tax Allowed People The “Freedom To Choose” How They Want To
“Modify Their Lifestyle.”
Rex Tillerson: “We Believe The Carbon Tax Is The Most Effective Way To Allow People The Freedom To Choose
How They Want To Modify Their Lifestyle.” According to Fair Disclosure, “REX TILLERSON: […] And as Sister Pat
noted, we have said in the policy debate that if governments are looking for policy alter-natives to influence human behavior
choices in the products and services and the way they carry out their activities that we believe the carbon tax is the most
effective way to allow people the freedom to choose how they want to modify their lifestyle, as posed to systems of cap in
trade which as we model them, we do not believe ultimately produced the most economically efficiency outcome of shifting
behavior. It is an area of enormous concern. It's an area of enormous debate, witness the various meetings of the IPCC and
the intergovernmental groups trying to deal with this. And what I can tell you is while there are certainly consensus among the
scientific community of the problem, the risks that are involved and that human activities contribute, there's a wide range of
variability in the science community of the understanding of just how much you attribute to each of those activities and
therefore there is also a wide range of variability as to what governments feel is the appropriate approach in the global
community.” [Fair Disclosure, 5/25/11]
Tillerson Supported A “Revenue Neutral” Carbon Tax
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Rex Tillerson Said He Supported A “Revenue Neutral” Carbon Tax. According to the New York Times, “Ten of the
world's big oil companies, mainly from Europe, have jointly acknowledged that their industry must help address global climate
change and said that they agreed with the United Nations' goals of limit-ing global warming. […] Rex W. Tillerson,
ExxonMobil's chief executive, has repeatedly said he would support putting a price on carbon as long as it was ‘revenue
neutral.’” [New York Times, 10/19/15]
Rex Tillerson’s ExxonMobil Supported A Carbon Tax. According to the New York Times, “Mr. Tillerson assumed the
role of chairman and chief executive of Exxon Mobil in January 2006, and during his tenure the company acknowledged, for
the first time, the science underlying climate change. It has said it supports the creation of a carbon tax, which most
Republicans have opposed, and it also supported the Paris climate agreement, a major focus of Mr. Kerry's time in office. Mr.
Trump has vowed to abandon the climate pact. In May, Mr. Tillerson told shareholders that ‘we believe that addressing the
risk of climate change is a global issue,’ adding that it would require the cooperation of governments, businesses and
individuals.” [New York Times, 12/10/16]
Environmentalists Accused Tillerson/ExxonMobil’s Support For Carbon Tax Of Being A “Deliberate
Attempt To Torpedo” Efforts To Impose Stricter Cap And Trade Policies
Environmental Groups Skeptically Viewed Rex Tillerson’s Suggestion That A Carbon Tax Was The “Least Worst”
Option To Address Emissions As An Attempt To Slow Down The Cap And Trade Debate Progressing In The U.S.
Government. According to Platts Oilgram News, “Exxon had already dropped its funding of lobby groups which deny the
science of climate change and begun to take a softer public line, but even Mr Tillerson admitted that pro-pounding a carbon
tax had stuck in the craw until recently. However, with European-style ‘cap and trade’ rules governing carbon emissions
moving up the agenda in the US, a carbon tax may be the least worst option, he said. Environmental groups gave a sceptical
response to Exxon’s U-turn, calling it a deliberate attempt to torpedo the movement for outright carbon caps and any early
switch to alternative energy. ‘A carbon tax is also the most efficient means of reflecting the cost of carbon in all economic
decisions - from investments made by companies to fuel their requirements, to the product choices made by consumers,’ Mr
Tillerson said in a speech to the Woodrow Wilson Centre for International Scholars, a Washington think-tank. ‘As a
businessman it is hard to speak favourably about any new tax. But a carbon tax strikes me as a more direct, a more transparent
and a more effective approach.’” [Platts Oilgram News, 1/9/09]
Climate Change
TILLERSON’S POSITION ON CLIMATE CHANGE WERE MORE “INFLEXIBLE”
THAN THAT OF HIS PREDECESSOR, LEE RAYMOND
Private Empire: “Tillerson’s Own Views About Climate Science Were Not Greatly Different From Lee Raymond’s”
And Tillerson Never Expressed Concern Over Raymond’s Rejection Of Climate Change. According to Private Empire:
ExxonMobil and American Power, “Tillerson’s own views about climate science were not greatly different from Lee Raymond’s.
Tillerson held a bachelor ‘s degree in civil engineering; Raymond held a doctorate in chemical sciences. Tillerson did not claim
or wish to project the same sort of independent scientific expertise that Raymond had offered about climate science. Tillerson
remained relatively quiet on scientific questions. ‘During Lee’s reign, Rex never expressed any concern whatsoever’ about
ExxonMobil ‘s policy positions, recalled an executive on the board of directors.’ He was fully on board. . . . Lee would say,
‘The scientists on the other side are wrong.’ Rex would say, ‘It’s more complicated than most people understand.” [Private
Empire: ExxonMobil and American Power, pg. 339, 2012]
Rex Tillerson Was Described By One Energy Executive As “More Inflexible” Than His Predecessor When It Came
To Accepting The Realities Of Climate Change And Investing Record Profits In Research And Development Of
Alternative Fuels. According to The New York Times, “During the tenure of Lee R. Raymond, who ran the company from
1993 to 2005, Exxon became the lightning rod in the debate about climate change. Throughout the 1990s, the company was
vilified by environmental groups and scientists for questioning the impact of human activities -- especially the use of fossil
fuels -- on global warming. Gingerly, over the last three years, Exxon has moved away from its extreme position. It stopped
financing climate skeptics this year, and has sought to soften its image with a $100 million advertising campaign featuring real
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company executives, scientists and managers. One of the ads said the company aimed to provide energy ‘with dramatically
lower CO2 emissions.’ The company has acknowledged that climate change is a risk to the world. In a speech given before
the Royal Institute of International Affairs in London last year, Mr. Tillerson said policy makers should consider setting a
carbon tax or a plan that limits carbon emissions through a cap-and-trade sys-tem. But while Exxon is slowly unshackling
itself from Mr. Raymond’s stance on global warming, it remains faithful to his legacy by dismissing most green alternatives and
sticking with hydrocarbons. Although the company’s tone has changed, its strategy has not. Despite growing pressures on oil
companies to invest in alternative energy, Exxon’s long-term view remains unapologetically tied to fossil fuels. ‘Rex looks
more approachable than his predecessor,’ says a rival executive who requested anonymity because he did not want to
jeopardize his relationship with Mr. Tillerson, ‘but he is more inflexible.’” [The New York Times, 11/16/08]
2006: Other Oil Industries Executives Criticized Tillerson’s Stance On Climate Change
2006: Two Weeks After Rex Tillerson Expressed Doubt Over The Veracity Of Global Warming, BP’s Chief
Executive John Browne Said Companies Denying Climate Change “Gives Business A Bad Name.” According to the
Washington Post, “Tillerson is also sticking to his determination to question scientists who say carbon dioxide emissions are
causing global warming. ‘We think it's important that there be a very meaningful debate about it,’ he said at the annual
meeting. ‘And it ought to consider all the skeptics because skeptics sometimes identify an issue that hasn't been thought
about.’ In a speech delivered two weeks later, Browne said that when companies denied that climate change was a serious
issue and said there was nothing business could do, ‘it gives business a bad name.’” [Washington Post, 8/6/06]
UNDER TILLERSON, EXXONMOBIL FUNDED CLIMATE CHANGE DENIAL
RESEARCH
Rex Tillerson: “Never Bet Against Science, Never.” According to the Charlie Rose Show, “CHARLIE ROSE: It`s hard to
bet against science though. And. REX TILLERSON: Never bet against science, never.” [Charlie Rose Show, 3/7/13]
Exxon Mobile Funded Climate Change Deniers
Between 1998 And 2007, Exxon Spent $15.8 Million Funding Groups That Rejected “Scientific Evidence Of Human
Contribution To Global Warming.” According to Newsday, “Exxon Mobil Corp., the world's biggest gasoline maker, spent
$15.8 million since 1998 funding groups that reject scientific evidence of a human contribution to global warming, according
to a report yesterday by the Union of Concerned Scientists. Exxon gave to 43 organizations promoting ‘uncertainties’ about
global warming to delay U.S. action to curb emissions of greenhouse gases, the report said.” [Newsday, 1/4/07]
2006: Rex Tillerson Told Exxon Mobil Shareholders That The Company Intends To Remain Active In The Climate
Change Debate. According to Platts Oilgram News, “Complaints about the company's position on climate change concerns
also surfaced throughout the meeting. Tillerson told shareholders that ExxonMobil believes the issue is not ‘estimable or
material’ to the company's business strategy. But he did emphasize that ExxonMobil intends to remain active in the climate
change debate. He said the board will review all the shareholder proposals to determine if they merit serious consideration.
On the majority vote proposal, he said the company must review the legal implications of implementation before taking
further action.” [Platts Oilgram News, 6/1/06]
2006: Senators Snowe And Rockefeller Accused Exxon Mobil Of Impeding Progress By Funding Of
Climate Change Deniers Such As The Competitive Enterprise Institute
Olympia Snowe And John D. Rockefeller IV Sent A Letter To Rex Tillerson Demanding That ExxonMobil Cease
Funding The Competitive Enterprise Institute And Other Global Warming Skeptics. According to the Washington
Times, “Sens. Olympia J. Snowe and John D. Rockefeller IV, in a letter to the chairman of ExxonMobil Corp., demanded that
the oil giant cease funding the Competitive Enterprise Institute and other global warming skeptics. ‘In light of the adverse
impacts still resulting from your corporation's activities, we must request that ExxonMobil end any further financial assistance
or other support to groups or individuals whose public advocacy has contributed to the small, but unfortunately effective,
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climate change denial myth,’ the two senators said in a letter to Rex W. Tillerson, chairman and chief executive officer of
ExxonMobil. The letter was dated Friday.” [Washington Times, 11/2/06]
2006: Olympia Snowe And John D. Rockefeller IV Accused ExxonMobil Of Carrying Out A “Climate Change
Denial Strategy” And Funding Climate Denial Research Since The Late 1990s. According to the Washington Times,
“After congratulating Mr. Tillerson for reaching the helm of the oil giant, Republican Sen. Olympia J. Snowe of Maine and
Democratic Sen. John D. Rockefeller IV of West Virginia cut straight to the chase, criticizing the so-called ‘climate change
denial strategy carried out by and for Exxon Mobil’ against global warming. In the three-page letter obtained by Inside the
Beltway, the senators say it's their understanding that Exxon Mobil is ‘the primary funder of no fewer than 29 climate-change
denial front groups in 2004 alone.’ In addition, they write, ‘Exxon Mobil has spent more than $19 million since the late 1990s
on a strategy of 'information laundering,' or enabling a small number of professional skeptics working through scientificsounding
organizations to funnel their viewpoints’ through various media.” [Washington Times, 11/2/06]
Olympia Snowe And John D. Rockefeller IV To Rex Tillerson: “Exxon Mobil And Its Partners In Denial Have
Manufactured Controversy, Sown Doubt And Impeded Progress With Strategies All-Too Reminiscent Of Those
Used By The Tobacco Industry For So Many Years.” According to the Washington Times, “‘Exxon Mobil and its
partners in denial have manufactured controversy, sown doubt and impeded progress with strategies all-too reminiscent of
those used by the tobacco industry for so many years,’ the senators charge. They go so far as to request that, for starters,
Mr. Tillerson ‘publicly acknowledge both the reality of the climate change and the role of humans in causing or
exacerbating it. Second, Exxon Mobil should repudiate its climate-change denial campaign and make public its funding
history. ‘Finally, we believe that there would be a benefit to the United States if one of the world's largest carbon emitters
headquartered here devoted at least some of the money it has invested in climate-change denial pseudo-science to global
remediation efforts.’” [Washington Times, 11/8/06]
Olympia Snowe And John D. Rockefeller IV Called On Rex Tillerson To “Publicly Acknowledge” Man-Made
Climate Change, Repudiate Its Climate-Change Denial Campaign And Fund “Global Remediation Efforts.”
According to the Washington Times, “‘Exxon Mobil and its partners in denial have manufactured controversy, sown doubt
and impeded progress with strategies all-too reminiscent of those used by the tobacco industry for so many years,’ the senators
charge. They go so far as to request that, for starters, Mr. Tillerson ‘publicly acknowledge both the reality of the climate
change and the role of humans in causing or exacerbating it. Second, Exxon Mobil should repudiate its climate-change denial
campaign and make public its funding history. ‘Finally, we believe that there would be a benefit to the United States if one of
the world's largest carbon emitters headquartered here devoted at least some of the money it has invested in climate-change
denial pseudo-science to global remediation efforts.’” [Washington Times, 11/8/06]
Exxon Funded A Climate Change-Denial Group Originally Created By Phillip Morris To Sow Confusion
Over The Dangers Of Second-Hand Smoke
2006: Union Of Concerned Scientists Report: Among The Organizations Part Of ExxonMobil’s Campaign To
Create “Uncertainties” About Global Warming Was A Group Started By Phillip Morris To Sow Confusion Over The
Dangers Of Second-Hand Smoke. According to Newsday, “Exxon Mobil Corp., the world's biggest gasoline maker, spent
$15.8 million since 1998 funding groups that reject scientific evidence of a human contribution to global warming, according
to a report yesterday by the Union of Concerned Scientists. Exxon gave to 43 organizations promoting ‘uncertainties’ about
global warming to delay U.S. action to curb emissions of greenhouse gases, the report said. Exxon also successfully
recommended climate advisers for the Bush administration, which rejected a global treaty to cut greenhouse gases in 2001 and
instead called for voluntary reductions. Among the biggest recipients of funding from Exxon were the Competitive Enterprise
Institute, which advocates limited government regulation of business, and the Advancement of Sound Science Coalition, a
group started by Altria Group Inc.'s Philip Morris in 1993 to sow confusion over the dangers of second-hand smoke, the
report said.” [Newsday, 1/4/07]
Tillerson Defended The Company, Claiming They Were Simply Funding Research To Highlight
Unanswered Questions
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2006: Rex Tillerson Denied To ExxonMobil Shareholders That The Company Funds Research To Debunk Global
Warming, Claimed The Company Supported Research Highlighting Questions That Have Not Yet Been Answered.
According to the Dallas Morning News, “A few shareholders asked Mr. Tillerson to address environmental concerns: Why
does Exxon donate to research organizations that question global warming? And how come Exxon doesn't invest in renewable
fuels? Mr. Tillerson said he's puzzled about accusations that Exxon supports research to debunk global warming theories. He
said that's not true; the company simply supports research that brings to light questions that haven't been answered about
climate change, and that leads to muddled conclusions. ‘Why wouldn't everyone want to have a conversation on what we
know and what we don't know?’ he said. ‘Today, there is no conclusive, scientific model or basis that you can say doesn't have
a flaw in it.’” [Dallas Morning News, 6/1/06]
2006: Rex Tillerson To Accusations ExxonMobil Funds Research To Deny Climate Science: “Why Wouldn't
Everyone Want To Have A Conversation On What We Know And What We Don't Know?” According to the Dallas
Morning News, “A few shareholders asked Mr. Tillerson to address environmental concerns: Why does Exxon donate to
research organizations that question global warming? And how come Exxon doesn't invest in renewable fuels? Mr. Tillerson
said he's puzzled about accusations that Exxon supports research to debunk global warming theories. He said that's not true;
the company simply supports research that brings to light questions that haven't been answered about climate change, and that
leads to muddled conclusions. ‘Why wouldn't everyone want to have a conversation on what we know and what we don't
know?’ he said. ‘Today, there is no conclusive, scientific model or basis that you can say doesn't have a flaw in it.’” [Dallas
Morning News, 6/1/06]
2007: Congress Investigated ExxonMobil’s Funding Of Climate Skepticists
2007: Rex Tillerson Was Asked By The Chairman Of A House Investigations Panel For Documentation Detailing
ExxonMobil Grants To Climate Skeptic Organizations. According to Platts Oilgram News, “ExxonMobil is drawing fire
again for giving financial support to ‘climate skeptic’ organizations, and has been asked by the chairman of a House
investigations panel to provide related tax forms and a complete list of all corporate grants awarded in 2006 and thus far in
2007, by recipient, and the amount and purpose of the awards. ‘The support of climate skeptics, many of whom have no real
grounding in climate science, appears to be an effort to distort public discussion about global warming,’ House Science
Investigations and Oversight Subcommittee Chairman Brad Miller, Democrat, North Carolina, said in a letter May 17 to
ExxonMobil Chairman Rex Tillerson. ‘So long as popular discussion could be about whether warming was occurring or not,
so long as doubt was widespread, consensus for actions could be postponed.’” [Platts Oilgram News, 5/22/07]
2008: ExxonMobil Agreed To Discontinue Contributions To Climate Denial Groups.
2008: Exxon Mobil Pledged To Discontinue Contributions To Climate Change Denial Groups. According to the
Guardian, “In its corporate citizenship report, released last week, ExxonMobil says it intends to cut funds to several groups
that ‘divert attention’ from the need to find new sources of clean energy. The move comes ahead of the firm’s annual meeting
today in Dallas, at which prominent shareholders including the Rockefeller family will urge ExxonMobil to take the problem
of climate change more seriously. Green campaigners accuse the company of funding a ‘climate denial industry’ over the last
decade, with $23m (£11.5m) handed over to groups that play down the risks of burning fossil fuels. The ExxonMobil report
says: ‘In 2008 we will discontinue contributions to several public policy research groups whose position on climate change
could divert attention from the important discussion on how the world will secure the energy required for economic growth in
an environmentally responsible manner.’” [Guardian, 5/28/08]
But, It Continued To Find Climate Denial Research For Years Afterwards
Exxon Mobil Continued To Fund Climate-Change Denial Research Between 2008 And 2010 Despite A Pledge To
End The Practice In 2008. According to the Guardian, “At the time the oil company was the main funder of dozens of front
groups and researchers rubbishing any link between the burning of fossil fuels and climate change - or denying climate change
was occurring at all. Among the recipients was Willie Soon, the Harvard-Smithsonian researcher who received more than $1m
(£0.7m) from industry, according to documents obtained by Greenpeace through freedom of information filings. In a report
released on the eve of their 2008 annual general meeting, the oil company pledged to stop funding groups that promote
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climate denial. However, the company continued funding Soon for three more years. The documents show that Exxon gave
Soon an additional $76,106 from 2008 to 2010, despite claiming to have stopped.” [Guardian, 3/27/15]
2011: Rex Tillerson Said Exxon Supports Scientists On Both Sides Of The Climate Change Debate. According to
Dallas Morning News, “Tillerson was also asked during the shareholder meeting about Exxon’s financial support for scientists
who deny climate change. He said Exxon supports scientists on all sides of the issue. ‘We view the risk from climate change as
serious,’ he said. Humans must act, but scientists still need to learn the most effective ways to stop it. ‘There’s a consensus that
humans actively contribute to that risk,’ he said. ‘I don’t think any of us have ever suggested we don’t believe human activity
contributes.’ Some shareholders who have long urged Exxon to set goals to reduce greenhouse gas emissions thanked
Tillerson for stating a forceful position on climate change.” [Dallas Morning News, 5/26/11]
2015: Nearly 100 Direct Descendents Of The Rockefeller Family Called On Exxon To Stop Funding
Climate Deniers
Nearly 100 Direct Descendants Of The Rockefeller Family Signed A Letter “Begging The Company To Stop
Funding Climate Deniers.” According to the Guardian, “The US environmentalist Bill McKibben says the failure of the
family's efforts is telling and signals the limits of shareholder engagement with some fossil fuel companies. ‘It makes a very
clear point that engaging with fossil fuel companies to somehow get them to change their ways is unlikely to work if the family
of the founder can't get Exxon to shift.’ The Rockefeller heirs also tried private and public pressure. Nearly 100 direct
descendants also signed a letter expressing concern as investors and begging the company to stop funding climate deniers,
Goodwin said.” [Guardian, 3/27/15]
AND, TILLERSON PERSONALLY DONATED TO EXXON-RELATED PACS THAT
FUNDED CLIMATE-SKEPTIC POLITICIANS
Guardian: “US Oil Industry Leaders, Including Exxon Mobil Chief Executive Rex Tillerson, Make Contributions
To Their Own Corporate Pacs - Money Which In Many Cases Can Then Be Traced To Inhofe And Other Climate-
Sceptic Politicians.” According to the Guardian, “PACs exist in the US where companies and trade unions cannot give
directly to the campaigns of those running for office. Instead funds are pooled from staff - often senior executives - into a
PAC, and disbursed by a committee board, often in a manner sympathetic to the company's lobby and other interests. Other
US oil industry leaders, including Exxon Mobil chief executive Rex Tillerson, make contributions to their own corporate PACs
- money which in many cases can then be traced to Inhofe and other climate-sceptic politicians.” [Guardian, 3/23/15]
2006: EXXON INSISTED IT BELIEVED CLIMATE CHANGE WAS A “SERIOUS
ISSUE”
2006: Rex Tillerson: ExxonMobil Believes “Climate Change Is A Serious Issue.” According to the Sunday Telegraph,
“Tillerson is happy to discuss the issue at length. Exxon holds that, despite gaps in the scientific evidence, ‘climate change is a
serious issue'’ and that ‘what we know is that carbon emissions are one of the factors that contribute to climate change’, he
says. The company is adamant that the substance of its position has not changed - just that it is clarifying its long-held position
on global warming. Exxon, Tillerson adds, is a strong advocate of energy efficiency and is investing in research for alternative
fuels, citing its contribution to the Global Climate and Energy Project at Stanford.” [Sunday Telegraph, 8/27/06]
2006: Rex Tillerson: “We Recognize That Climate Change Is A Serious Issue. […] We Recognize That Greenhouse
Gas Emissions Are One Of The Factors Affecting Climate Change.” According to the New York Times, “If Rex W.
Tillerson has his way, Exxon Mobil will no longer be the oil company that environmentalists love to hate. Since taking over as
Exxon's chairman three months ago from Lee R. Raymond, his abrasive predecessor who dismissed fears of global warming
and branded environmental activists ‘extremists,’ Mr. Tillerson has gone out of his way to soften Exxon's public stance on
climate change. ‘We recognize that climate change is a serious issue,’ Mr. Tillerson said during a 50-minute interview last week,
pointing to a recent company report that acknowledged the link between the consumption of fossil fuels and rising global
temperatures. ‘We recognize that greenhouse gas emissions are one of the factors affecting climate change.’” [New York
Times, 3/30/06]
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2006: BUT, DENIED SCIENTIFIC CONSENSUS ON CLIMATE CHANGE’S
EXPECTED IMPACTS, CAUSES
Claimed Existing Models Were Flawed
2006: Rex Tillerson On Global Warming: “Today, There Is No Conclusive, Scientific Model Or Basis That You Can
Say Doesn't Have A Flaw In It.” According to the Dallas Morning News, “A few shareholders asked Mr. Tillerson to
address environmental concerns: Why does Exxon donate to research organizations that question global warming? And how
come Exxon doesn't invest in renewable fuels? Mr. Tillerson said he's puzzled about accusations that Exxon supports
research to debunk global warming theories. He said that's not true; the company simply supports research that brings to light
questions that haven't been answered about climate change, and that leads to muddled conclusions. ‘Why wouldn't everyone
want to have a conversation on what we know and what we don't know?’ he said. ‘Today, there is no conclusive, scientific
model or basis that you can say doesn't have a flaw in it.’” [Dallas Morning News, 6/1/06]
2006: Rex Tillerson On The Concept Of A Scientific Consensus On Global Warming: “The Term Scientific
Consensus Is An Oxymoron In Itself.” According to the Globe and Mail, “But Mr. Tillerson, for all his warm demeanour,
has made it clear he is not straying from the company's long-held beliefs and investment practices. The company still believes
oil prices will come down from their lofty $70-a-barrel levels, unlike others in the industry who think high oil prices are here to
stay. It still views the science behind global warming with skepticism. And you won't see it investing in wind or solar energy
any time soon. ‘The term scientific consensus is an oxymoron in itself,’ Mr. Tillerson said when one shareholder suggested
there was consensus on global warming.” [Globe and Mail (Canada), 6/5/06]
2006: Tillerson Admitted That Carbon Emissions Contributed To Climate Change, But Refused To
Acknowledged The Significance Of Those Findings
2006: Rex Tillerson: ExxonMobil Understands “That Carbon Emissions Are One Of The Factors That Contribute
To Climate Change.” According to the Sunday Telegraph, “Tillerson is happy to discuss the issue at length. Exxon holds
that, despite gaps in the scientific evidence, ‘climate change is a serious issue'’ and that ‘what we know is that carbon emissions
are one of the factors that contribute to climate change’, he says. The company is adamant that the substance of its position
has not changed - just that it is clarifying its long-held position on global warming. Exxon, Tillerson adds, is a strong advocate
of energy efficiency and is investing in research for alternative fuels, citing its contribution to the Global Climate and Energy
Project at Stanford.” [Sunday Telegraph, 8/27/06]
2006: Rex Tillerson: “There Are Factors Impacting Climate Change Other Than Greenhouse Gases.” According to
the Dallas Morning News, “Mr. Tillerson made it clear he doesn't plan radical changes to the company's way of doing
business. […] Will Exxon change its tune on the subject of global warming? ‘We've been studying this issue longer than
anyone,’ he said. ‘There remains a lot of uncertainty around the whole question of climate change. I think any scientist would
look you in the eye and say: We don't understand this. There are factors impacting climate change other than greenhouse
gases.’” [Dallas Morning News, 3/9/06]
2006: Rex Tillerson Affirmed, Like His Predecessor At Exxon, That There Was “Still Significant Uncertainty
Around All Of The Factors That Affect Climate Change.” According to the New York Times, “But despite the shift in
style to a less adversarial tone, the substance of Exxon's position has not changed with the new chairman. The company said
the recent report only clarified its long-held position on global warming. Indeed, Mr. Tillerson noted that he, like Mr.
Raymond before him, remained convinced that there was ‘still significant uncertainty around all of the factors that affect
climate change.’” [New York Times, 3/30/06]
For Years, Tillerson Continued To Deny Scientific Consensus On The Level Human Impacts Played on Climate Change
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2013: Rex Tillerson; “The Facts Remain There Are Uncertainties Around The Climate, Climate Change, Why It`S
Changing, What The Principal Drivers Of Climate Change Are” According to the Charlie Rose Show, “CHARLIE
ROSE: Speaking of global warming, how are you different than Lee Raymond, your predecessor who had outspoken views
about global warming? REX TILLERSON: Well it`s -- I think in terms of my view of where we find ourselves on our
understanding of global warming, we have continued to study this issue for decades. I think we probably as a -- as a
corporation were one of the first companies to identify this as a -- as a potential issue because we are a fossil fuels based
company. And Lee and others before him had undertaken studies. They had funded studies at MIT and other universities to
inform our understanding of the issue. As time has gone by those studies have continued, more data has been gathered, more
sophistication in our ability and the scientist`s ability to create models that are better, more competent in their -- their analysis.
With all of that, though, the facts remain there are uncertainties around the climate, climate change, why it`s changing, what
the principal drivers of climate change are. And I think the issue that I think is unfortunate in the public discourse is that the
loudest voices are what I call the absolutist, the people who are absolutely certain that it is entirely man- made and you can
attribute all of the climate change to nothing but man- made burning of fossil fuels.” [Charlie Rose Show, 3/7/13]
2011: Rex Tillerson Downplayed The Human Effects On Climate Change And Argued Environmental Policy Should
Not Be Designed Solely Around The Understanding Of That Known Human Component. According to Fair
Disclosure, “REX TILLERSON: […] There is a consensus that human activity without question contributes to that risk, but
there is also recognition that the complexities of climate science involve many elements that are still not well understood by
the scientific community. And it is important if we are going to formulate policies around the human component of that
challenge that we understand what is the impact of those policies going to be. Are they going to produce a measureable benefit
or are they not? And in order to do that, it means you have to understand other elements of the climate system that the science
communities quite frankly struggles with still today. And so we continue to fund a number of activities to better help the
scientific community hopefully better understand this very complicated climate system. Very elegant climate system that we
enjoy on planet earth. So I think oftentimes people view that funding as somehow funding people who don't believe in a
particular position around the direct effect of human contribution. I don't think any of us have ever suggested that we don't
believe human activity contributes. The question is, we all also know and the scientific community knows there are a lot of
other things going on.” [Fair Disclosure, 5/25/11]
2010: Rex Tillerson On Climate Change: “There Is Not A Model Available Today That Is Competent” For
Determining Human Impact On Climate Change. According to the New York Times, “Mr. Schneiderman also
mentioned, as an example of questionable public statements by Exxon Mobil, congressional testimony in 2010 by its chief
executive, Rex Tillerson, who said that while the company acknowledged that humans were affecting the climate through
greenhouse gas emissions to some degree, it was not yet clear ‘to what extent and therefore what can you do about it.’ Mr.
Tillerson added, ‘There is not a model available today that is competent’ for understanding the science and predicting the
future.” [New York Times, 8/20/16]
2013: Denied Scientific Consensus On Climate Change Impacts
2013: Rex Tillerson Stated There Has Been Nothing To Confirm A Link Between Severe Weather Incidents And
Climate Change. According to the Charlie Rose Show, “CHARLIE ROSE: And we`ve had a series of weather incidents and
some people believes there is a link between those weather incidents, Hurricane Sandy and others and what`s happening in
terms of global warming. Do you believe there is some link there? REX TILLERSON: I have seen no scientific studies to
confirm. CHARLIE ROSE: Not a specific storm but -- nothing. In terms of those kinds of direct outcomes, you see no link?
REX TILLERSON: There has been nothing to confirm that there is a link. And I -- and we look at the studies and most of
the -- most of the concerns people have that there is a link it is a hypothesis at this point. And so in science you have a
hypothesis, now you must go and conclude and confirm the hypothesis.” [Charlie Rose Show, 3/7/13]
2006: REPEATEDLY CLAIMED CLIMATE CHANGE SCIENCE REMAINED TOO
UNCERTAIN TO DICTATE POLICY
Exxon “Demanded Environmentalists ‘Prove’ Cause And Effect In Climate-Change Science Beyond A Reasonable
Doubt,” And Insisted The Economic Costs Of Addressing Climate Change Outweighed Environmental Benefits.
According to Private Empire: ExxonMobil and American Power, “Even where scientists might establish some risk to human health,
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that measure of risk could then be weighed against the benefits of the product. ExxonMobil and other opponents of
greenhouse gas regulation had used risk analysis frameworks to strengthen their arguments in opposition to the Kyoto
Protocol’s goals. The corporation’s allies in academia demanded that environmentalists ‘prove’ cause and effect in climatechange
science beyond a reasonable doubt, and even then, after 2006, when ExxonMobil finally conceded that human activity
might be contributing to global warming, the corporation still resisted specific restrictions on carbon use on the grounds that
the economic costs outweighed the environmental benefits. This was the burden of proof demanded by some advocates of
risk analysis: First, prove the harm; then, if the harm is established, prove that the cost-benefit equation of proposed regulation
is well balanced. ExxonMobil applied the same lobbying strategy to proposed regulation of its manufactured chemicals.”
[Private Empire: ExxonMobil and American Power, pg. 479-480, 2012]
2006: Rex Tillerson: “There Remains A Lot Of Uncertainty Around The Whole Question Of Climate Change. I
Think Any Scientist Would Look You In The Eye And Say: We Don't Understand This.” According to the Dallas
Morning News, “Mr. Tillerson made it clear he doesn't plan radical changes to the company's way of doing business. […]
Will Exxon change its tune on the subject of global warming? ‘We've been studying this issue longer than anyone,’ he said.
‘There remains a lot of uncertainty around the whole question of climate change. I think any scientist would look you in the
eye and say: We don't understand this. There are factors impacting climate change other than greenhouse gases.’” [Dallas
Morning News, 3/9/06]
2007: Rex Tillerson Maintained That Climate Science “Remains An Extraordinarily Complex Area Of Scientific
Study.” According to The Globe and Mail, “Speaking at an annual heavyweight industry gathering hosted by Cambridge
Energy Research Associates, Mr. Tillerson said the oil industry should join the policy debate on climate change and take
immediate steps to reduce emissions. […] Although there are still uncertainties about global warming, Mr. Tillerson reiterated
recent company policy on the need to take immediate action to reduce emissions. ‘We know our climate is changing, the
average temperature of the earth is rising, and greenhouse gas emissions are increasing,’ he said. ‘We also know that climate
remains an extraordinarily complex area of scientific study.’ Mr. Tillerson's speech was a careful and broad articulation of the
company's views on climate change and alternative energy, but contained no dramatic announcements. Many of the speech's
other themes, such as the need for more access to prospective oil and gas sites, could have been lifted from old Exxon
speeches.” [The Globe and Mail (Canada), 2/14/07]
Claimed There Was Not Enough Science To Motivate A Shift Away From Fossil Fuels
Dallas Morning News: Rex Tillerson Argued “That Current Climate Models Were Not Yet Strong Enough To
Justify A Drastic Shift Away From Fossil Fuels.” According to the Dallas Morning News, “Exxon Mobil CEO Rex
Tillerson again rebuffed criticism Wednesday that the company was not doing enough to cut carbon emissions, arguing that
current climate models were not yet strong enough to justify a drastic shift away from fossil fuels. Instead, he argued at
Exxon's annual shareholders meeting in downtown Dallas, the world needs to wait for the science to improve and look for
solutions to the effects of climate change - rising sea levels, crop failures - as they become clearer. ‘What if everything we do, it
turns out our models are lousy, and we don't get the effects we predict?’ Tillerson said. ‘Mankind has this enormous capacity
to deal with adversity, and those solutions will present themselves as those challenges become clear.’ Tillerson's statements on
climate change Wednesday mirrored those of recent years, in which he has art-fully shifted the company away from attacking
the science that climate change is man-made and instead asks what the costs of cutting carbon dioxide would be to the global
economy.” [Dallas Morning News, 5/28/16]
Dallas Morning News: Rex Tillerson “Questioned Climate Modeling That Suggests That Reducing Carbon Dioxide
Emissions Would Curb Global Warming.” According to the Dallas Morning News, “Exxon Mobil CEO Rex Tillerson
pushed back against criticism Wednesday that the company was not doing enough to reduce emissions and combat climate
change. He questioned climate modeling that suggests that reducing carbon dioxide emissions would curb global warming.
‘There's no one that has a viable pathway to achieve that,’ he said at Exxon's annual shareholders' meeting. ‘What if everything
I'm doing doesn't work? Or the reasons for all this happening aren't what we thought?’ As the world's largest publicly traded
oil company, Exxon has been taking heat for its opposition to efforts to reduce the emission of carbon dioxide and other
gases connected to rising global temperatures.” [Dallas Morning News, 5/29/14]
Rex Tillerson Said That Climate Change Models “Just Aren’t That Good.” According to the National Post, “A
University of Texas-trained engineer who's spent his 40-year career at Exxon, the CEO said technology will provide solutions
to any impacts that result from climate change, such as higher sea levels. Climate models that seek to predict the outcome of
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ising temperatures ‘just aren't that good,’ Tillerson said. The company is wary of making efforts to reduce emissions that may
not work or that will be deemed unnecessary if the modelling is flawed, he said.” [National Post, 5/28/15]
2006: Tillerson Believed Climate Change Was Not “Estimable Or Material” To Company Policy
2006: Rex Tillerson Told Exxon Mobil Shareholders That The Company Believes The Issue Of Climate Change Is
Not “Estimable Or Material” To The Company's Business Strategy. According to Platts Oilgram News, “Complaints
about the company's position on climate change concerns also surfaced throughout the meeting. Tillerson told shareholders
that ExxonMobil believes the issue is not ‘estimable or material’ to the company's business strategy. But he did emphasize that
ExxonMobil intends to remain active in the climate change debate. He said the board will review all the shareholder proposals
to determine if they merit serious consideration. On the majority vote proposal, he said the company must review the legal
implications of implementation before taking further action.” [Platts Oilgram News, 6/1/06]
2006: Rex Tillerson Told Stockholders Regarding Climate Change: “The Level Of Misinformation Only Makes It
More Important To Discuss The Massive Scale Of Our Industry And The Meaningful Alternatives Available In The
Foreseeable Future.” According to the Independent, “Mr. Raymond routinely accuses advocates of a link between global
warming and carbon emissions of practising fuzzy science. His first action as a senior executive was to cut solar and other
alternative energy programmes because they did not seem likely to make money for decades. His successor, Rex Tillerson, who
took over at the start of the year, has attempted to put a more congenial face on Exxon's stance. The company still argues that
the link between emissions and global warming rests on the assertion of expert scientists rather than on robust scientific
models. He told shareholders: ‘The level of misinformation only makes it more important to discuss the massive scale of our
industry and the meaningful alternatives available in the foreseeable future.’” [Independent, 6/1/06]
2007: AMID BACKLASH, TILLERSON SOUGHT TO TO SOFTEN EXXONMOBILE’S
PUBLIC IMAGE
2006: According To Jad Mouawad Of The New York Times, Rex Tillerson “Has Gone Out Of His Way To Soften
Exxon's Public Stance On Climate Change.” According to Jad Mouawad of the New York Times, “If Rex W. Tillerson
has his way, Exxon Mobil will no longer be the oil company that environmentalists love to hate. Since taking over as Exxon's
chairman three months ago from Lee R. Raymond, his abrasive predecessor who dismissed fears of global warming and
branded environmental activists ‘extremists,’ Mr. Tillerson has gone out of his way to soften Exxon's public stance on climate
change. ‘We recognize that climate change is a serious issue,’ Mr. Tillerson said during a 50-minute interview last week,
pointing to a recent company report that acknowledged the link between the consumption of fossil fuels and rising global
temperatures. ‘We recognize that greenhouse gas emissions are one of the factors affecting climate change.’” [Jad Mouawad,
New York Times, 3/30/06]
Tillerson Moved To Soften Exxon’s Existing Image On Climate Change Without Changing Its Position
2007: Rex Tillerson Was Seen As Softening Exxonmobil’s Position On Global Warming. According to The Globe and
Mail, “Long considered the most hostile oil company to global warming policy, Exxon has gradually softened its position
under Mr. Tillerson. Last week, the largest private oil company in the world explicitly acknowledged that greenhouse gases
from human activity are a factor in global warming, a reversal from the company's long-standing position. The oil giant has
also unveiled a major public relations drive touting its efforts to develop environmentally friendly technology.” [The Globe
and Mail (Canada), 2/14/07]
2007: Rex Tillerson Told A Select Group Of Top Investors That Exxonmobil Was Not Changing Its Position On
Global Warming Just Presenting It Better. According to the Guardian, “The leadership at ExxonMobil has promised
investors that it will ‘soften’ its public image in a bid to rid it-self of a reputation for being green campaigners' public enemy
number one. Chairman and chief executive Rex Tillerson made clear to a select group of top Wall Street fund managers and
equity analysts that it would not be changing its basic position on global warming - just explain it better. The world's biggest
publicly quoted oil company faces a long-running boycott campaign against its Esso petrol brand by environmental activists in
Europe. A pugnacious personal style and an uncompromising stance on global warming and other issues taken by former
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oss, Lee Raymond, left it isolated compared to rivals such as Shell and BP which have courted the green lobby. Mr Tillerson,
who took over January 2006, is said to have told the meeting of six analysts and four major investors that the company
accepted it had a public relations problem. ‘We recognise that we need to soften our public image. It is something we are
working on,’ he told them, according to one of the analysts who attended the discussions.” [Guardian, 1/8/07]
2007: Rex Tillerson: “We Recognise That We Need To Soften Our Public Image. It Is Something We Are
Working On.” According to the Guardian, “The leadership at ExxonMobil has promised investors that it will ‘soften’ its
public image in a bid to rid it-self of a reputation for being green campaigners' public enemy number one. Chairman and
chief executive Rex Tillerson made clear to a select group of top Wall Street fund managers and equity analysts that it
would not be changing its basic position on global warming - just explain it better. The world's biggest publicly quoted oil
company faces a long-running boycott campaign against its Esso petrol brand by environmental activists in Europe. A
pugnacious personal style and an uncompromising stance on global warming and other issues taken by former boss, Lee
Raymond, left it isolated compared to rivals such as Shell and BP which have courted the green lobby. Mr Tillerson, who
took over January 2006, is said to have told the meeting of six analysts and four major investors that the company
accepted it had a public relations problem. ‘We recognise that we need to soften our public image. It is something we are
working on,’ he told them, according to one of the analysts who attended the discussions.” [Guardian, 1/8/07]
Tillerson Moved To Acknowledge Climate Change’s Existence, Without Admitting ExxonMobil Made
Mistakes
Tillerson Aimed To “Reposition Exxonmobil’s Arguments About [Global] Warming To More Fully Account For
Consensus Scientific Opinion, Without Admitting That Any Of The Corporation’s Previous Positions Had Been
Mistaken.” According to Private Empire: ExxonMobil and American Power, “The Tillerson committee’s assignment was tricky
because it involved legal risks. Greenpeace, the Union of Concerned Scientists, and other campaigners had accused
ExxonMobil of replaying the science-manipulating techniques of tobacco companies. The comparison itself served as a
warning: To achieve their goals, environmental groups might, as antitobacco activists had done, file class-action tort litigation,
accusing ExxonMobil of fraudulent efforts to suppress greenhouse gas regulations. It was hard to imagine how ExxonMobil
could ever be as badly affected by lawsuits over global warming as tobacco companies had been by suits over smoking’s
dangers, but Cohen and other corporate lawyers could not afford to be complacent. (The tobacco companies had initially
regarded their own class-action suits as an immaterial nuisance and had been proven wrong .) One of the challenges facing
Tillerson’s interdisciplinary climate team, then, was to reposition ExxonMobil’s arguments about warming to more fully
account for consensus scientific opinion, without admitting that any of the corporation’s previous positions had been
mistaken, for that might open a door to lawsuits.” [Private Empire: ExxonMobil and American Power, pg. 336-337, 2012]
2006: Tillerson Suggested The U.S. Should Take Steps To Cut Greenhouse Gas Emissions, Leading Some
To Accuse ExxonMobil Of Paying Lip Service To Climate Change For Marketing Strategies
2006: Rex Tillerson: The US “Should Take Steps Now To Cut [Greenhouse Gases] Emissions Efficiently And
Effectively.” According to Platts Oilgram News, “Rex Tillerson, ExxonMobil’s CEO, told a Boston business group this
month the US ‘should take steps now to cut [GHG] emissions efficiently and effectively.’ For some, this was a sea change in
ExxonMobil's thinking. Pro-business environmental group Environmental Defense touted Tillerson's comment in a press
release. But others wonder whether ExxonMobil is changing its climate change view or simply engaged in ‘messaging’ to
burnish its image with investors and the public. ‘Until Exxon calls for a mandatory cap on emissions, I'm not convinced,’ said
Greenpeace climate change coordinator Kert Davies.’” [Platts Oilgram News, 12/18/06]
Martin Coyne Of Platts Oilgram News Said Some “Wonder Whether ExxonMobil Is Changing Its Climate Change
View Or Simply Engaged In ‘Messaging’ To Burnish Its Image With Investors And The Public.” According to Platts
Oilgram News, “For some, this was a sea change in ExxonMobil's thinking. Pro-business environmental group Environmental
Defense touted Tillerson's comment in a press release. But others wonder whether ExxonMobil is changing its climate change
view or simply engaged in ‘messaging’ to burnish its image with investors and the public. ‘Until Exxon calls for a mandatory
cap on emissions, I'm not convinced,’ said Greenpeace climate change coordinator Kert Davies.’” [Martin Coyne, Platts
Oilgram News, 12/18/06
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Publically Tillerson Claimed Exxon Was Expressing A “Thoughtful” View
Rex Tillerson On Climate Change: “We're Not Going To Fake It. We're Going To Express A View That We Have
Been Very Thoughtful About.” According to the Guardian, “Rex Tillerson, the chief executive and chair of ExxonMobil,
told shareholders in Dallas, Texas, that the company was not going to ‘fake it on climate change’. ‘We're not going to be
disingenuous about it. We're not going to fake it. We're going to express a view that we have been very thoughtful about.
We're going to express solutions and policy ideas that we think have merit. Speaking out to be speaking out about it doesn't
seem particularly helpful to me,’ he said.” [Guardian, 6/1/15]
Reactions: ExxonMobil Began To Respond To Public Concerns
2007: Clifford Krauss And Jad Mouawad Of The New York Times Described Rex Tillerson’s Recent Statements On
Climate Change As “Suggested That Exxon Was Navigating Between A Position Defending Oil As An Energy
Source And Showing Sensitivity To Growing Public Concerns.” According to the New York Times, “Tillerson’s remarks
were his first formal and extensive comments since the publication of a report two weeks ago by the Intergovernmental Panel
on Climate Change, a leading panel of international scientists and reviewers, concluding that there is 90 percent certainty that
human activity is decisive in changing the global climate. Tillerson told reporters that he had not read the report but said: ‘My
understanding is there’s not a clear 100 percent conclusion drawn. Nobody can conclusively 100 percent know how this is
going to play out. I think that’s important.’ Taken together, his statements suggested that Exxon was navigating between a
position defending oil as an energy source and showing sensitivity to growing public concerns about a warming climate.”
[Clifford Krauss and Jad Mouawad, New York Times, 2/15/07]
2007: Expert: ExxonMobil’s About-Face On Climate Change Under Rex Tillerson Is Significant. According to the
Boston Globe, “Last week, Rex W. Tillerson, ExxonMobil’s chief executive, acknowledged that greenhouse gases from car
and industrial exhausts are factors in global warming, a stark reversal in the company’s long-held position. For years,
ExxonMobil has funded several Washington think tanks that have questioned the science - and whether national policies
would be effective. Scott Barrett, a global warming believer and director of the International Policy Program at Johns Hopkins’
School of Advanced International Studies, said ExxonMobil’s about-face is significant. ‘They accepted the responsibility to do
something, and that could change the debate’ from uncertainty about climate change to finding solutions to a fast-approaching
crisis, he said.” [Boston Globe, 2/15/07]
2007: TILLERSON CLAIMED THAT HUMAN IMPACT ON CLIMATE CHANGE
WAS NO LONGER UP FOR DEBATE
2007: Rex Tillerson On Climate Change: “It Is Clear That Something Is Going On. It's Not Useful To Debate It
Any Longer.” According to the New York Times, “It has also done a bunch of really dumb things, like funding groups like
the Competitive Enterprise Institute, which a few years ago (after Exxon stopped funding it) ran ads touting carbon dioxide. A
former chief executive, Lee Raymond, used to openly scoff at environmentalists and alternative energy efforts and global
warming. But early last year, Exxon Mobil got a new chief executive, Rex Tillerson. And last month, at the World Economic
Forum in Davos, Switzerland, Tillerson said of global warming, ‘It is clear that something is going on. It's not useful to debate
it any longer.’ So Exxon Mobil is finally trying to change its tune. But for a company that is so utterly competent at its core
mission, it is utterly incompetent when it comes to making the case that it is not the devil incarnate on the environment.”
[New York Times, 2/10/07]
2007: Rex Tillerson: “We Know Our Climate Is Changing, The Average Temperature Of The Earth Is Rising, And
Greenhouse Gas Emissions Are Increasing.” According to The Globe and Mail, “Speaking at an annual heavyweight
industry gathering hosted by Cambridge Energy Research Associates, Mr. Tillerson said the oil industry should join the policy
debate on climate change and take immediate steps to reduce emissions. […] Although there are still uncertainties about
global warming, Mr. Tillerson reiterated recent company policy on the need to take immediate action to reduce emissions.
‘We know our climate is changing, the average temperature of the earth is rising, and greenhouse gas emissions are increasing,’
he said. ‘We also know that climate remains an extraordinarily complex area of scientific study.’ Mr. Tillerson's speech was a
careful and broad articulation of the company's views on climate change and alternative energy, but contained no dramatic
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announcements. Many of the speech's other themes, such as the need for more access to prospective oil and gas sites, could
have been lifted from old Exxon speeches.” [The Globe and Mail (Canada), 2/14/07]
2007: Tillerson Acknowledged Climate Change Risks Were “Significant”
2007: Rex Tillerson: “The Risks To Society And Ecosystems From Climate Change Could Prove To Be Significant.”
According to the New York Times, “But it was on the subject of global warming that Tillerson drew the most interest from
energy leaders at the conference, which was organized by the energy consulting firm Cambridge Energy Research Associates.
‘The risks to society and ecosystems from climate change could prove to be significant,’ said Tillerson. ‘So, despite the
uncertainties, it is prudent to develop and implement sensible strategies that address these risks.’” [New York Times,
2/15/07]
2010: Tillerson Acknowledged Human Impact Of Climate Change
2010: Rex Tillerson Acknowledged That Greenhouse Gases And Industrial Technology Are A Factor In Climate
Change. According to a Hearing on the ExxonMobil-XTO Merger, “INSLEE: Thank you. Mr. Tillerson, our job and
Congress' job is -- job one is jobs now, as you know, for -- for obvious reasons. I want to ask some -- some questions about
this merger as it pertains to the ability of the United States to really seize the economic opportunities in the new nonfossil fuel
base systems in addition to natural gas. First, I want to ask, does Exxon believe that human-caused emissions of carbon
dioxide and some other gases are changing at least to some degree the Earth's climate? TILLERSON: (inaudible). We have
said for some time that there's no question climate is changing. That one of the contributors to climate change are greenhouse
gases that are a result of industrial activity. And there are many greenhouse gases besides CO2, which -- I know you know
that. And the real challenge I think for all of us is understanding to what extent and therefore what can you do about it. And
it is a scientific challenge. We view it as a risk management problem. There is a risk. The consequences if those risks play out
are pretty dire. And so, our view, for some time, has been first and foremost, let's continue to support the scientific
investigation of what is one of the most complicated areas of science that people are studying today, and that is the climate --
the science around climate and what affects the climate. It is extremely complicated.” [Rep. Edward J. Markey Holds a Hearing
on the ExxonMobil-XTO Merger, 1/20/10]
2007 - 2008: TILLERSON AND EXXON MOBIL BEGAN TO ARGUE THAT WHILE
CLIMATE CHANGE WAS REAL, EXISTING POLICY PROPOSALS WERE “TOO
SIMPLISTIC” AND “UNREALISTIC” TO BE WORTHWHILE.
Rex Tillerson Argued “A Lot Of Climate Change Policy Is Still Up For Debate” And Feared Policies Aimed At
Curbing Use Of Fossil Fuels Would Have A Negative Economic Impact. According to the New York Times, “Mr.
Tillerson defended Exxon's record, saying, ‘We're focused on safely and reliably meeting the growing energy demand while
working to reduce our impact on the environment.’ At a news conference after the vote, Mr. Tillerson said, ‘A lot of climate
change policy is still up for debate,’' adding society must be realistic about the economic impact of policies aimed at curbing
the burning of fossil fuels.” [New York Times, 5/29/08]
Tillerson Denounced Environmentalist Efforts To Address Climate Change As “Too Simplistic”
Rex Tillerson Said Environmental Activists Set On Ideas “Such As Hard Emissions-Reduction Goals Were
Simplistic.” According to the Toronto Star, “A dissident shareholder and Dominican sister from New Jersey, Pat Daley, said
that Exxon was making a long-term business mistake by not moving more aggressively into alternative fuels. She said the
company was betting ‘that the nations of the world will continue to do nothing about climate change for the next 30 years.’
Tillerson responded that he was confident technology will provide an answer to climate change, and he said proponents of
ideas such as hard emissions-reduction goals were simplistic. ‘There is not going to be a ready set of solutions that are going to
fit the world's peoples’ because, Tillerson suggested, people in developing countries will want to achieve the same living
standards as those in the developed world, which will drive higher global demand for energy.” [Toronto Star, 5/28/14]
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And Claimed That Any One Country Attempting To Address Climate Change Would Be Useless
2007: Rex Tillerson: “Climate Change Is A Global Issue. […] So You Need An Approach For Global Participation.”
According to Platts Oilgram News, “The two executives also agreed on the need for increased access to potential resources in
the US. Delivering the keynote address, Tillerson discussed the controversial subject of climate change and also urged US
energy policies that would consider the industry’s track record for operating in an environmentally sound manner. On both
subjects, however, Tillerson stressed the importance of a global approach to help the industry fulfill its ultimate goal of
meeting the world’s need for affordable and reliable energy sources. ‘Climate change is a global issue,’ said Tillerson. ‘So you
need an approach for global participation.’ He emphasized the industry’s role in the climate change debate, calling the subject a
‘complex area of scientific study.’ Tillerson said: ‘Our industry has a responsibility to contribute to policy discussions on these
important is-sues, and to take concrete actions ourselves to reduce emissions.’ On the subject of increased access for
exploration, Tillerson said: ‘We are stuck in a time warp from the 1960s.’ He added: ‘It is time for the debate on access to
move forward.’ Tillerson said the industry has shown its ability to operate in harsh areas without creating problems.” [Platts
Oilgram News, 2/14/07]
2008: Rex Tillerson Claimed That Any One Country Attempting To Address Climate Change On Its Own Would Be
“Unlikely To Produce Any Meaningful Impact.” According to Fair Disclosure, “CRAIG ROSEBROWN,
SHAREHOLDER: […] Now ExxonMobil, I believe, it was around 2008 made a commitment to stop funding denialist
organizations and scientists whose purpose was to cast doubt on the reality of climate change and yet, in very recent news
coming out of the United Kingdom, investigators showed that ExxonMobil was still funding some of these denialist
organizations. So my question to you, Mr. Tillerson, in this now 2011 when there is consensus among the international
scientific community that human cause climate change is a real threat that needs to be remedied, an action needs to be taken,
will you make a personal promise on behalf of ExxonMobil to do what you can to stop funding denialist organizations and
admit once and for all that human cause climate change is real and ExxonMobil is going to lead the way to do something
about it. REX TILLERSON: Well, I'd be happy to respond to your question. I think our positions, we hope, have been made
as clear as we're able to make them. That we view the risk from climate change as serious and it's a risk that does need to be
managed in a very broad and global way. That trying to manage that risk --anyone country trying to manage that risk or
certainly anyone state trying to manage that risk is unlikely to produce any meaningful impact.” [Fair Disclosure, 5/25/11]
Tillerson Claimed Realistic Climate Change Policies Needed To Be Global
Rex Tillerson: “We Believe That Addressing The Risk Of Climate Change Is A Global Issue.” According to the New
York Times, “Exxon Mobil's chief executive, Rex W. Tillerson, addressed climate change as part of his remarks at the annual
meeting, citing the company's extensive research over the decades and its work with the Intergovernmental Panel on Climate
Change. ‘We believe that addressing the risk of climate change is a global issue’ that will require the cooperation of
governments, business and individuals, he said, and he repeated the company's support of a carbon tax. Mr. Tillerson also
predicted that oil and gas would long be an important part of the company's mix, be-cause ‘abundant energy supplies are vital
for modern life.’” [New York Times, 5/27/16]
Rex Tillerson Said That Climate Change Policies Should Be Implemented Evenly Across The World. According to
the National Post, “Exxon CEO Rex Tillerson said his company has long recognized that climate change is a serious risk and
might require action. But, he said, any policies should be implemented evenly across the world, allow market prices to pick
solutions, and be flexible enough to respond to economic ups and downs and ‘breakthroughs in climate science.’ Exxon
forecasts oil and gas will make up 60 per cent of the world's energy supply in 2040 - about the same share it holds today. Its
CEO said the company was balancing the need to produce more energy for grow-ing world demand with environmental
considerations. Tillerson said there is no alternative source that can replace the ubiquity of fossil fuels. He expressed
confidence that technology will provide the key to limiting carbon emissions.” [National Post, 5/26/16]
2007: Exxon Pushed A “Uniform And Predictable” Carbon Pricing System That Spanned Multiple
Economies
2007: Rex Tillerson Offered Support For A System Of “Uniform And Predictable” Pricing Of Carbon “Across The
Economy” To Reduce Carbon Emissions. According to Platts Oilgram News, “Efforts to reduce carbon emissions must
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maximize the use of market mechanisms, and achieving a uniform and predictable cost for carbon is crucial to the success of
these efforts, ExxonMobil CEO Rex Tillerson said June 21. ‘In general, we believe that maximizing the use of markets to
select and deploy technologies will best serve society’s interests in the long term and meet future energy needs,’ Tillerson said.
‘And we believe achieving a uniform and predictable cost for carbon across the economy will enable market mechanisms to
work effectively to this end.’” [Platts Oilgram News, 6/25/
Tillerson Claimed That Consumers, Not Companies Should Be Responsible For Addressing Climate
Change Solutions
2007: Rex Tillerson Said Ultimate Responsibility For Climate Change Fell On Consumers That Continue To
Demand Fossil Fuel And Not The Industry, Which Provides It. According to the Irish Times, “Chairman and chief
executive of Exxon Rex Tillerson said ultimate responsibility for controlling CO2 emissions lay with consumers of energy.
‘You can't talk about climate change without putting in the context of energy consumption . . . You can look at almost any
forecast and in the year 2030 that consumption is going to grow by 50 per cent.’ Mr Tillerson said alternative energy sources
would not provide a meaningful substitute in the foreseeable future. ‘Even with double digit growth in alternatives, those
alternatives will account for no more than 2 per cent in 2030.’” [Irish Times, 1/26/07]
TILLERSON REJECTED SHAREHOLDER EFFORTS TO FORCE EXXON TO
MORE ACTIVELY ADDRESS CLIMATE CHANGE
2011: Tillerson Opposed A Shareholder Proposal To Require Exxon To Report On Its Environmental
Impact Of Natural Gas Drilling
2011: Rex Tillerson Urged Shareholders To Vote Against A Failed Proposal For Exxon To Report On The
Environmental Impact Of Natural Gas Drilling. According to Dallas Morning News, “About 26 percent of the shares that
voted in the meeting supported a proposal for Exxon to report on the environmental impact of natural gas drilling. The
proposal states that any environmental impact and increased regulatory scrutiny could threaten Exxon’s ability to drill. The
Exxon board, led by Tillerson, recommended that shareholders vote against the proposal. None of the eight shareholder
proposals won a majority of votes.” [Dallas Morning News, 5/26/11]
2011: Tillerson Urged Exxon Directors To Reject A Resolution For The Company To Reduce Its
Greenhouse Gas Emissions
Rex Tillerson Urged The Board Of Directors To Reject A Resolution Calling On Exxon Mobil To Reduce
Greenhouse Gas Emissions From Its Operations And From Exxon Fuel Products. According to the Guardian,
“Separately, Daly is leading a group of activist shareholders calling on Exxon to come up with a plan to cut its greenhouse gas
emissions - not just emissions from extraction and refinement processes, but also from Exxon fuel products. This resolution
effectively calls on the group to set out a timeframe for a transition to becoming a non-carbon energy group, phasing out fossil
fuels. Again, it is opposed by Tillerson and his fellow directors, who in a letter to shareholders recommend they vote down the
resolution as impractical. They told investors: ‘Energy is required to produce and process oil and gas, so increases in
production volumes that are needed to meet the world's rising need for energy will lead to increases in emissions from our
operations and from end use by customers.’” [Guardian, 5/27/15]
Natural Gas Week: “Exxon Mobil Chief Executive Rex Tillerson Took A Vehement Stand Against Shareholders
Who Asked The Company To More Aggressively Address Greenhouse Gases.” According to Natural Gas Week,
“Exxon Mobil Chief Executive Rex Tillerson took a vehement stand against shareholders who asked the company to more
aggressively address greenhouse gases (GHGs) and other environmental issues at the Big Tiger’s annual meeting held recently
in Dallas. In particular, Tillerson highlighted Exxon’s recent successes at reducing its carbon footprint -- while imploring
stakeholders to consider other priorities, such as the link between energy costs and poverty.” [Natural Gas Week, 6/10/13]
2015: Tillerson Rejected Efforts To Include An Environmental Specialist On Exxon’s Board
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Rex Tillerson Urged The Board Of Directors To Vote Down A Resolution Calling For A Seat On The Board To Be
Reserved For An Environmental Specialist. According to the Guardian, “In a letter to shareholders before the Dallas
meeting, Tillerson and his fellow directors recommended voting against Crosby's resolution. They argued: ‘To set aside one
seat for an environmental specialist or for any single attribute or area of expertise would, in our view, not be in the best
interests of the company or its shareholders because it would dilute the breadth needed by all directors to make informed
decisions for the company.’” [Guardian, 5/27/15]
2015: TILLERSON CLAIMED THAT SOCIETY WOULD SIMPLY ADAPT TO
CLIMATE CHANGE
Rec Tillerson Argued That Climate Change Concerns Were Overblown And Argued That Society Would Adapt To
A Warming Planet. According to Detroit Free Press, “ExxonMobil CEO Rex Tillerson says fears about climate change,
drilling and energy dependence are overblown. In a speech Wednesday to the Council on Foreign Relations, Tillerson
acknowledged that burning of fossil fuels is warming the planet, but said society will adapt. The risks of oil and gas drilling are
well understood and can be mitigated, he said. Dependence on other nations for oil is not a concern as long as access to
supply is certain, he said. Tillerson blamed a public he called illiterate in science and math, a lazy press, and advocacy groups
that ‘manufacture fear.’ The oil executive questioned the ability of climate models to predict the magnitude of the impact, and
said that people would adapt to rising sea levels and changing climates that may force agricultural production to shift. ‘We
have spent our entire existence adapting. We’ll adapt,’ he said. ‘It’s an engineering problem and there will be an engineering
solution.’” [Associated Press, 6/28/12]
Rex Tillerson On Climate Change: “Solutions Will Present Themselves As Those Challenges Become Clear.”
According to the Globe and Mail, “Exxon CEO Rex Tillerson recently urged caution in adopting costly policies to move off
fossil fuels, saying climate models that predict calamity may be wrong and ‘solutions will present themselves as those
challenges become clear.’” [Globe and Mail, 6/2/15]
Tillerson Repeatedly Denied Climate Change Was A Pressing Generational Issue, Argued It Was Not
Worth Addressing If Regulations Imposed Restrictions On Humanity’s Development
Rex Tillerson On Taking Action To Combat Climate Change: “What Good Is It To Save The Planet If Humanity
Suffers?” According to the New York Times, “Also in the running: Rex Tillerson, the C.E.O. of ExxonMobil. Unlike
Representative Rohrabacher, Tillerson seems to believe that human beings have had an impact on the climate; he just doesn't
care. ("What good is it to save the planet if humanity suffers?")” [New York Times, 12/8/16]
Rex Tillerson Rejected The Notion That Global Warming Was The Greatest Challenge Of A Generation. According
to the Council on Foreign Relations, “MR. MURRAY: But let's stick with that for just a second. I mean, Exxon Mobil,
before you became CEO, was very aggressive and overt in challenging and mounting a public relations campaign against the
sorts of things that Mr. Fenton (sp) just managed. You changed that when you came in. But I guess the question I'd ask -- I
was at my daughter's graduation last weekend, and the graduation speaker said that global warming is the great challenge of
your generation. Do you agree with that? Would you agree that it's in -- at least one of the top five challenges of the
generation, or do you personally think that it's been way over-blown? MR. TILLERSON: No, I think it's -- I think it's a great
challenge, but I think it's a question back to priorities. And I think, as I just described based on our understanding of the
system and the models and the science and that there are engineering solutions to adapting, that we think it's solvable. And I
think there are much more pressing priorities that we as a -- as a human being race and society need to deal with.” [Council on
Foreign Relations, 6/27/12]
Tillerson Claimed That The Bigger Challenge Was Addressing Global Energy Needs
Rex Tillerson: “We Also See A Tremendous Challenge And That Is How To Meet The World’s Growing Energy
Needs While Also Reducing The Impact Of Energy Use On The Environment.” According to Platts Oilgram News,
“In releasing the report, ExxonMobil CEO Rex Tillerson said supplies of all economic fuel sources must be expanded. ‘In our
energy outlook, we see many hopeful things--economic recovery and growth, improved living standards and a reduction in
poverty, and promising new energy technologies,’ said Tillerson. ‘But we also see a tremendous challenge and that is how to
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meet the world’s growing energy needs while also reducing the impact of energy use on the environment,’ he added. With
expectations that global energy demand will rise at an average annual rate of 1.2% through 2030, the world would be using
35% more energy than it used in 2005, according to ExxonMobil.” [Platts Oilgram News, 12/9/09]
Rex Tillerson Said ExxonMobil Was Balancing Its Responsibility To Produce More Energy To Meet Growing
Demand With Environmental Considerations. According to the National Post, “Shareholders at Exxon's annual meeting
rejected several resolutions backed by environmentalists that would have pushed the company to take a stronger stand in
favour of steps to limit climate change. CEO Rex Tillerson said the company was balancing its responsibility to produce more
energy to meet growing demand with environmental considerations. Over the board's opposition, shareholders voted to ask
directors to adopt a proxy-access rule, which would make it easier for shareholders to propose board candidates and remove
incumbent directors.” [National Post, 5/26/16]
2015: NEW YORK STATE INVESTIGATED EXXON FOR MISLEADING THE
PUBLIC ON CLIMATE CHANGE
2015: Rex Tillerson’s ExxonMobil Came Under Investigation In New York State For Allegedly Misleading The
Public On Climate Change In 2014. According to the National Post, “At ExxonMobil's annual shareholders meeting in
May, Rex Tillerson, the silver-haired chief executive officer and chairman of the biggest oil company in the world, did
something he hadn't before in his last 10 such presentations: He addressed climate change head-on. For several minutes, he
talked about Exxon's investments in biofuel and carbon-capture technologies, its efforts to cut its greenhouse gas emissions by
8.8 million tonnes since 2011, equivalent to taking two mil-lion cars off the road, and how its scientists have spent decades
studying climate change, a risk he said ‘warrants thoughtful action.’ Tillerson had no choice but to address the elephant in the
room. Six months earlier, Exxon had come un-der investigation by New York's attorney general for allegedly misleading the
public on climate change. Its shareholders wanted answers, too.” [National Post, 10/29/16]
2015: EXXON LOBBIED THE VATICAN ON CLIMATE CHANGE
Exxon Mobile Sent A Lobbyist To The Vatican To “Brief the Vatican on Global Warming” Prior To Publication Of
The Pope’s Encyclical On The Environment. According to the Guardian, “ExxonMobil boss Rex Tillerson has a long
history of civil but strained sparring with Father Michael Crosby and Sister Pat Daly at its annual shareholder meetings. Crosby
is leading a group of investors calling for Exxon to give a seat on its board to an eminent climate expert, while Daly is pressing
for emission targets that would set the company on the the path away from fossil fuels. All this is taking place against a
backdrop of mounting external pressure on the oil group that makes the confrontation at this year's gathering in Dallas, Texas,
especially significant. It comes just weeks after Exxon dispatched a lobbyist and a planning executive to Rome in an attempt to
brief the Vatican on global warming. Pope Francis is shortly to publish his encyclical on the environment, which could make
uncom-fortable reading for many in the oil and gas industry.” [Guardian, 5/27/15]
Kyoto Protocol
CLAIMED KYOTO PROTOCOL DID NOT PRODUCE MEANINGFUL CHANGE
2006: Rex Tillerson Said He Would Not Have Signed The Kyoto Protocol Because It Excluded The Part Of The
World “That Is Going To Generate 80 To 85 Per Cent Of The Growth In Carbon Dioxide Emissions.” According to
the Sunday Telegraph, “So would he have signed up to the Kyoto Protocol? No, he says, noting that it excludes not just a large
part of the consuming world but also that part of the world ‘that is going to generate 80 to 85 per cent of the growth in carbon
dioxide emissions’. Will Exxon ever be a big investor in renewable energy like some of its peers, notably BP, which has
invested millions in a new business? Only if it makes economic sense.” [Sunday Telegraph, 8/27/06]
2006: Rex Tillerson Said “People May Sleep Better At Night In Europe Because They Are Signed On To Kyoto” But
It Didn’t Do Anything. According to the Sunday Telegraph, “The company has for years been criticized by
environmentalists for allegedly dismissing fears of global warming. Tillerson, however, said the company recognized that
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‘carbon emissions are one of the factors that contribute to climate change’. Nevertheless, he said he would not have signed up
to the Kyoto Protocol, arguing that it excludes a large part of the world that will be responsible for much of the growth in
CO2 emissions. ‘People may sleep better at night in Europe because they are signed on to Kyoto. When our children and
grandchildren deal with this 100 years from now and it hasn't made any difference, I'm not sure we've done anything for
them.’” [Sunday Telegraph, 8/27/06]
Greenhouse Gas Emissions
UNDER TILLERSON, EXXON VIEWED REGULATIONS ON GREENHOUSE GAS
EMISSIONS AS AN ECONOMIC THREAT
Exxon Predicted Long-Term Global Growth For Oil Demand, Unless Global Leaders Engaged In Large
Scale Efforts To Limit Greenhouse Gas Emissions
Exxon Was Convinced The Only Way The Global Oil Demand Would Not Continue To Rise Through 2030 Was A
Decision By Governments To Agree To Limit Greenhouse Gas Emissions. According to Private Empire: ExxonMobil and
American Power, “ExxonMobil ‘s 2030 exercise suggested, by implication, the distinctive role that climate policy would play in
oil’s medium-term future. The essence of the forecast’s message was that the development of the global economy and
population ensured that oil production would rise. By mid­ century, some breakthrough in battery technology or solar panel
arrays might reduce the costs of those energy sources so radically that they could compete economically with oil and coal in
free markets, but ExxonMo­ bil’s in-house scientists did not believe such a breakthrough was conceivable before 2030. Until
then, there was only one unexpected development, one ‘black swan’ intervention that could shift the curve of rising global oil
demand: a decision by governments to limit greenhouse gas emissions by heavily taxing or capping the use of carbon-based
fuels. The ExxonMobil forecast numbers suggested that to make an impact on oil demand, the world’s governments would
have to reach a unified conclusion that climate change presented an emergency on the scale of the Second World War-a threat
so profound and disruptive as to require massive national investments and taxes designed to change the global energy mix.”
[Private Empire: ExxonMobil and American Power, pg. 310, 2012]
Rex Tillerson Lamented The Long And Costly Process Of Any New Clean Energy And Warned Of “The
Consequences Of Policies To Curb Emissions.” According to Bbc Monitoring Asia Pacific - Political, “Exxon-Mobil chief
executive and chairman Rex Tillerson said, however, that the development and deployment of clean energy technology would
be a long and costly process -much longer than policymakers think. ‘Policy has to be grounded in reality,’ he said, arguing that
the consequences of policies to curb emissions must be taken into account by officials.” [Bbc Monitoring Asia Pacific -
Political, 11/15/09]
Keystone XL
SUPPORT
Rex Tillerson Supported The Keystone XL Pipeline. According to National Post, “After years of political wrangling,
President Barack Obama announced a little more than a year ago that he had denied a licence for the pipeline to cross the
border. The pipeline would have carried almost one-quarter of Canada's oil exports to the U.S. It was delayed by protests and
court fights, which could be rekindled by any attempt to revive the project. It's little surprise that Trump would favour the
project - it was part of his platform. He's also reportedly con-sidering naming the CEO of ExxonMobil as his secretary of
state, who would be in charge of the file. Oilman Rex Tillerson has long supported the project. He's also expressed a
preference for carbon taxes as his favoured form of climate policy, over cap-and-trade systems. Tillerson's rumoured
appointment drew considerable controversy over the weekend, mostly due to his yearslong personal relationship with Russian
leader Vladimir Putin.” [National Post, 12/12/16]
Believed It Was An Important Piece Of Infrastructure
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[Video] Tillerson: “Keystone Is An Important Piece Of Infrastructure For North America.” “Infrastructure is hugely
important and it is going to remain relevant because you must connect the energy supplies to the demand centers. Keystone is
an important piece of infrastructure for North America. It’s important for US/Canada, the interconnectedness. You know, the
Canadians are our best trading partners in the world. We want to remain connected to Canada. Canada wants to remain
connected to us. Part of how US consumers and the US economy will benefit from this enormous energy boom that we have
experienced is to connect North America all the way from Canada to Mexico and operate that North American system in a
very integrated fashion.” [“Squawk Box,” CNBC, 12/3/14; 141203_MM_96465]
Tillerson Claimed Keystone Opposition Was “Political Gamesmanship”
Rex Tillerson On Keystone XL: “Political Gamesmanship Continues To Delay A Pipeline That Would Create More
Than 20,000 Construction Jobs.” According to Engineering News-Record, “Construction labor is locking arms with the
petrochemical industry in hopes of clearing a political path for the Keystone XL pipeline and other stalled oil and gas projects.
Union presidents joined with industry leaders at the annual legislative conference of North America’s Building Trades, the
rebranded organized-labor umbrella group, to call for approval of the pipeline and other stalled petrochemical megaprojects.
Speakers at the mid-March event pointed to environmental and nation-al security studies that address concerns raised by
Keystone opponents, including a Jan. 31 State Dept. report that said the project would not lead to a significant greenhouse-gas
spike. ‘Together, we have ex-posed how political gamesmanship continues to delay a pipeline that would create more than
20,000 construction jobs,’ Rex Tillerson, CEO of Exxon Mobil Corp., told the 2,000 attendees. He noted union efforts to link
with industry in Marcellus shale states, including a partnership with the American Petroleum Institute to defeat an Ohio ballot
measure that would have halted hydrofracturing.” [Engineering News-Record, 3/17/14]
But Acknowledged That ExxonMobil Made Contingency Plans In Case The Keystone Was Not Approved
Rex Tillerson Said ExxonMobil Made Contingency Plans For Oil Transport In Case The U.S. Did Not Approve
Keystone XL. According to Platts Oilgram News, “The integrated major is also making contingency plans to transport oil
sands from the second phase of its Kearl development in Canada if the US does not approve the construction of the Keystone
XL pipeline, Tillerson said.” [Platts Oilgram News, 3/7/13]
Mackenzie Valley Pipeline
2005: Rex Tillerson Said He Expects The Mackenzie Pipeline That Was Bogged Down Over Discussions With The
Canadian Government And Native Americans To Move Ahead. According to the Financial Post, “Rex Tillerson, the
president of energy giant ExxonMobil Corp., said yesterday he expects the proposed $7-billion Mackenzie gas pipeline -- one
of many new sources of energy needed to meet rising global needs -- will move forward. Mr. Tillerson made the statement a
week before Imperial Oil Ltd., ExxonMobil's 70%-owned Canadian affili-ate and the project's leader, is expected to tell
Canadian regulators whether the project is ready to proceed with extensive public hearings. ‘It's a long process and there is
lots of interests that have to be addressed, but we continue to make good progress and my expectation is that we will
ultimately get across the finish line with this thing,’ Mr. Tillerson told reporters after a speech to business leaders here. The
pipeline, which would carry natural gas from three stranded fields in the Mackenzie Delta and feed it into the existing pipeline
system in Northern Alberta, has bogged down over discussions with the federal government on fiscal terms and with
aboriginals on benefits in exchange for backers of the project gaining access to their lands.” [Financial Post, 11/9/05]
2005: Rex Tillerson On The Mackenzie Valley Natural Gas Pipeline Getting Built: “My Expectation Is That We'll
Ultimately Get Across The Finish Line With This Thing.” According to the Globe and Mail, “The president of Exxon
Mobil Corp. says he believes the Mackenzie Valley natural gas pipeline will be built - ahead of a rival megaproject in Alaska - as
the deadline nears for its subsidiary Imperial Oil Ltd. to notify federal regulators that it wants to launch public hearings. ‘My
expectation is that we'll ultimately get across the finish line with this thing,’ Rex Tillerson, president of Exxon, the world's
largest oil company and the 69-per-cent owner of Imperial, said after a speech to the Canadian American Business Council. He
went on to praise the federal government's co-operation and support.” [Globe and Mail, 11/9/05]
2005: Rex Tillerson On The Mackenzie Valley Pipeline: “I Think There's Been Good Progress Made In Dealing
With A Number Of Long-Standing Issues Regarding Aboriginal Claims And Benefits And The Compensation That
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They Expect.” According to Natural Gas Week, “The president and heir apparent of Exxon Mobil, Rex Tillerson, said last
week that the $7 billion (US$5.9 billion) Mackenzie Valley pipeline will likely proceed, despite problems the pipeline
consortium have encountered while trying to nail down land access issues with native communities. ‘My expectation is the
Mackenzie pipeline will go forward,’ said Tillerson at a conference recently in Calgary. ‘I think there's been good progress
made in dealing with a number of long-standing issues regarding aboriginal claims and benefits and the compensation that they
expect.’ The project ran into trouble last April when the partners, led by Exxon-controlled Imperial Oil, stopped doing
physical work on the pipeline after they reached an impasse concerning land access, aboriginal benefits and difficulties
reaching a royalty and tax deal (NGW May9,p1).” [Natural Gas Week, 11/14/05]
TransCanada Pipeline
Rex Tillerson Hoped To Involve Exxon Mobil In Design And Construction Of The Proposed TransCanada Pipeline
To Bring Natural Gas From Alaska To The U.S. According to National Post's Financial Post & Fp Investing, “Exxon
Mobil Corp., the largest U. S. energy company, said it will be involved in the design and possibly construction of the $26-
billion TransCanada Corp. pipeline to carry Alaskan natural gas to U. S. markets. ‘We will be involved in the engineering and
design and if it goes forward we will be involved in the construction as well,’ chief executive Rex Tillerson told reporters at a
briefing in Groningen, the Netherlands. Mr. Tillerson declined to say what size its stake in the project would be or how much
it will invest. The 1,700-mile (2,700-km) link will transport gas from Alaska’s North Slope to a pipeline network in Alberta,
Canada, that serves industrial and residential demand in the U. S. Midwest. Irving, Texas-based Exxon is joining the pipeline
project. ‘The pipeline in our point of view continues to be the most likely best way to commercialize that gas,’ Mr. Tillerson
said.” [National Post's Financial Post & Fp Investing, 6/17/09]
Coal
SUPPORTED THE TRANSITION AWAY FROM COAL
Rex Tillerson Hailed The “Significant Recent Shift By Power Generators From Coal To Cleaner-Burning Natural
Gas.” According to Rex Tillerson, “Innovation on such scale is about more than economics. The results also are helping this
country meet shared environmental goals. U.S. energy information administration has estimated that the energy related U.S.
CO2 emission—the largest share of which comes from electric power generation—had fallen to their lowest level in more
than 15 years. We serve about 50 million additional U.S. energy consumers than we did in 1995 with about a 50% larger
economy than we had in 1995 and yet our CO2 emissions are close to what they were in 1995. This remarkable change did not
come about because of a new law or regulation. It largely came about because of continuing advances in energy efficiency
practices and technologies across all sectors of the U.S. economy as well as a significant recent shift by power generators from
coal to cleaner-burning natural gas.” [Rex Tillerson at University of Texas Alumni Business Conference, 2/21/13]
TILLERSON BELIEVED NATURAL GAS MADE COAL OBSOLETE
Rex Tillerson Said That Just As “Coal Replaced Trees” Coal And Oil Were In The Process Of Being Themselves
Replaced By Newer Sources Of Energy. According to the Charlie Rose Show, “REX TILLERSON: “Yes. So what`s
important is that as we look out there, there will be sufficient traditional fuels, oil, natural gas, coal to still power economies,
while these new, newer sources are growing. And as they grow, technology will improve. Next generation will be developed.
And a lot of the challenges that we are unable to overcome today in those sources will eventually be overcome. And as they
do, then they begin to grow just like coal replaced trees and oil replaced coal and I don`t think it will happen in my lifetime.
But it`s not beyond my view that eventually things will evolve to that.” [Charlie Rose Show 3/7/13]
Rex Tillerson Said Natural Gas Was Key To Environmental Progress Because Of Its Ability To Displace Coal.
According to Platts Oilgram News, “Tillerson placed gas at the forefront of the effort to meet future growth in energy
demand, which he saw as a constant challenge, despite talk of potential oversupply in the short term. ExxonMobil expects
unconventional gas production to rise 400% over the next three decades, he said, pointing out that by 2025 natural gas would
overtake coal as the second most important energy source after oil. Natural gas, he said, was key to combining environmental
progress with economic development, referring both to its flexibility as an energy source and its ability to displace coal.
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Tillerson’s comments came the same day as the International Energy Agency said it sees US’ break-neck pace of shale and
unconventional gas developments allowing the country top overtake Russia as the world’s biggest gas producer in 2017.”
[Platts Oilgram News, 6/6/12]
BELIEVED COAL POSED PUBLIC HEALTH CONCERNS
Rex Tillerson Described Natural Gas As Superior To Coal And Fuel Oil From An Environmental And Public Health
Standpoint. According to a Council on Foreign Relations Meeting with Rex W. Tillerson, “Natural gas obviously brings with
it a number of quality-of-life environmental benefits because it is a relatively clean-burning fuel. It has a CO2 footprint, but it
has no particulates. It has none of the other emissions elements that are of concern to public health that other forms of
power-generation fuels do have: coal, fuel oil, others.” [Council on Foreign Relations Meeting with Rex W. Tillerson,
6/27/12]
Rex Tillerson Said Coal Has “Emissions Elements That Are Of Concern To Public Health.” According to a Council
on Foreign Relations Meeting with Rex W. Tillerson, “Natural gas obviously brings with it a number of quality-of-life
environmental benefits because it is a relatively clean-burning fuel. It has a CO2 footprint, but it has no particulates. It has
none of the other emissions elements that are of concern to public health that other forms of power-generation fuels do have:
coal, fuel oil, others.” [Council on Foreign Relations Meeting with Rex W. Tillerson, 6/27/12]
Natural Gas
EXXON INVESTED HEAVILY IN NATURAL GAS
Natural Gas Represented 45% Of Exxon-XTO’s Combined Production. According to The Advertiser, “Exxon Mobil
chief Rex Tillerson said the company valued XTO for its expertise in ‘unconventional’ natural gas drilling - including shale gas,
coal bed methane and ‘tight gas’ locked in non-porous rock. XTO’s unconventional gas holdings, all in the US, complement
Exxon Mobil’s international presence. Natural gas will represent 45 per cent of the companies’ combined production.” [The
Advertis-er, 12/16/09]
Rex Tillerson: “We Expect Natural Gas To See A 65% Increase In Demand To Become The Second Most Used
Source Of Energy After Oil.” According to ICIS Chemical Business, “US-based ExxonMobil expects global energy demand
to rise by 35% from 2010 levels by 2040, led by higher growth in natural gas. ‘We expect natural gas to see a 65% increase in
demand to become the second most used source of energy after oil,’ said Rex Tillerson, chairman and CEO of ExxonMobil at
the company’s annual analyst meeting. Natural gas demand will grow by an average of 1.7%/year, higher than oil at 0.8%/year
and overtaking that of coal, which is projected to decline by 0.1%/year. Unconventional gas production will rise from less
than 15% of total gas production in 2010, to about a third of global gas production by 2040, noted Tillerson.” [ICIS Chemical
Business, 3/11/13]
Globe And Mail: Rex Tillerson “Said The Company Is Forecasting That Natural Gas Demand Will Significantly
Outpace Demand For Both Oil And Coal Over The Next Two Decades.” According to The Globe And Mail, “In a
conference call with analysts, Exxon CEO Rex Tillerson said the acquisition is meant to build the company’s asset base for the
next 20 to 30 years, and will complement its foreign unconventional gas as-sets, including its participation in the Montney and
Horn River shale plays in northeastern British Columbia. He said the company is forecasting that natural gas demand will
significantly outpace demand for both oil and coal over the next two decades, driven by growing consumption of electricity.
Natural gas is increasingly the fuel of choice for power providers because it emits less greenhouse gas pollution than coal, and
is more economical than coal or nuclear for smaller power plants.” [The Globe And Mail, 12/15/09]
Exxon Did Not Invest In Natural Gas For Environmental Reasons
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Environment Was Not A Concern That Led Tillerson To Invest In Natural Gas. According to Private Empire:
ExxonMobil and American Power, “ExxonMobil reentered American unconventional gas exploration and production on a
modest scale after prices rose enough to meet the Management Committee’s rigorous return-on-capital guidelines. After Tillerson
took charge, he pushed into onshore unconventional gas leasing more aggressively. The environmental issues did not seem
to concern him greatly. He conceded that there had been cases where the handling of fluids used to fracture rocks had ‘not
been done as well as it could be,’ but the ‘incidents’ constituted a ‘very, very, very small percentage’ in the context of total
production.” [Private Empire: ExxonMobil and American Power, pg. 586, 2012]
Rex Tillerson Acknowledged The Move Toward Natural Gas Was Not An Environmentally-Conscious Decision,
But Merely A Resource-Driven Business Decision. According to Forbes, “ExxonMobil isn’t going after gas out of a pure
love for the environment. It’s doing so because it’s running out of oil. The company’s production of crude is down 12% in the
past three years to 2.3 million barrels a day. In dollar value the company is still weighted toward petroleum. In energy content
its reserves are evenly divided. Tillerson says ExxonMobil is agnostic on whether a project contains oil or gas. ‘We never sit
down and say, ‘Gee, gas is going to perform better than oil,’ says Tillerson. ‘It’s really about finding resource opportunities
where we think profitability will be good.’” [Forbes, 8/24/09]
But Claimed Natural Gas Would Help The Company Address Environmental Concerns
Exxon President Of Project Development: “Natural Gas Is The Answer To Green-Energy Low-Carbon Concerns.”
According to Forbes, “Since taking the helm in 2006, ExxonMobil boss Rex W. Tillerson has worked hard to soften the
company’s stance on climate change; he is not as gruff and forceful as his predecessor Lee R. Raymond in dismissing globalwarming
alarmists. The engineering solution to the matter of carbon in the atmosphere: Drill for natural gas. Per unit of
energy delivered, methane releases 40% to 50% less carbon dioxide than coal and a quarter less than petroleum. Coal fuels half
of U.S. power generation. Replacing all of it with methane would cut CO2 emissions by 1 billion tons a year. Could windmills
come close to that in reducing greenhouse gases? Not easily. To get the same emissions reduction you would have to replace
half of power plant coal with 80,000 giant turbines covering 400,000 acres of ground. ‘Natural gas is the answer to greenenergy
low-carbon concerns,’ says Neil Duffin, president of ExxonMobil’s project development company.” [Forbes, 8/24/09]
Rex Tillerson: “Natural Gas Emits Up To 60 Percent Less Carbon Dioxide Than Coal When Used For Power
Generation.” According to “Natural Gas and the Policies of the Future,” “Our technologies have not only changed the
energy and economic landscape, they have brought tremendous environmental benefits. Because natural gas emits up to 60
percent less carbon dioxide than coal when used for power generation, natural gas from shale has been instrumental in
reducing U.S. carbon dioxide emissions to levels not seen since the 1990s. Remarkably, these environmental gains have come
even as the U.S. economy has grown 60 percent and added 50 million more consumers of energy than there were in the 1990s.
In addition, these gains have come despite the fact that United States has no comprehensive cost-of-carbon policy.” [Rex
Tillerson, “Natural Gas and the Policies of the Future,” World Gas Conference Paris, France, 6/2/15]
Claimed Overdevelopment Of Natural Gas Lead To Low Prices
Rex Tillerson Said The Gas Industry Had “Overdeveloped,” Leading To Lower Prices. According to Inside F.E.R.C.’S
Gas Market Report, “North American natural gas prices will have to rise significantly from current levels if producers hope to
recover their drilling costs, EXXONMOBILCEO Rex Tillerson said June 27. In an address to the Council on Foreign
Relations in New York, Tillerson said his company and other producers are ‘all losing our shirts’ with gas prices holding below
$3/MMBtu. Tillerson blamed the ramp-up in US gas production over the last several years, largely through the development
of shale gas basins. ‘Today we’re seeing these very low prices because the industry overshot when we had those six-, seven-,
eight- and nine-dollar prices. Now we have overdeveloped.’ He said producers are not covering their production costs at a gas
price of $2.50/MMBtu, adding that the industry will have to take steps to bring supply and demand back into balance.
‘Whatever price is necessary, the market will seek it.’” [Inside F.E.R.C.’S Gas Market Report, 7/6/12]
SUPPORTED EXPORTING NATURAL GAS RESERVES
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Rex Tillerson Called For The U.S. Government To Approve Keystone, Enable US Exports Of Oil And Natural Gas,
And Impose Fewer Regulations. According to Oil and Gas Journal, “The US government needs to adjust its energy policies
to ensure the country realizes all the benefits of the new era of energy abundance, said Rex W. Tillerson, ExxonMobil Corp.
chairman and chief executive of-ficer, during a Mar. 12 address to The Economic Club of Washington. Tillerson specifically
called for Congress and the White House to enable US exports of oil and natural gas, approve the Keystone XL crude oil
pipeline, and make the regulatory process less burdensome and more transparent.” [Oil and Gas Journal, 3/23/15]
Claimed Natural Gas Was Abundant
2004: Rex Tillerson Maintained That There Is Plenty Of Oil And Gas Reserves To Growing Energy Demand.
“Besides briefly addressing guidance for 2005, Tillerson also fielded questions about OPEC and the future of Russia's
Gazprom after emphasizing his primary message to the group. In those prepared remarks, Tillerson stressed his view the
world boasts plenty of oil and gas resources to meet the challenges of growing energy demand. But he warned the industry will
need new technologies and astute management to achieve it. Tillerson limited the audience and press to written questions,
choosing three from a large stack before leaving for a trip overseas. Asked about 2005 guidance, he cited this year's investment
of $16-bil, with $12-bil of that in upstream E&P and said: ‘That's about where we'll be next year and for the foreseeable
future.’” [Platts Oilgram News, 12/9/04]
2016: Tillerson Believed U.S. Natural Gas Reserves Provided “Enormous Spare Capacity” In The System
Rex Tillerson On U.S. Shale Extraction: “We Have Confirmed Viability Of Very Large Resource Base In North
America ... That Serves As Enormous Spare Capacity In The System.” According to the Independent, “But Tillerson,
who heads the world's largest listed oil and gas company, said that shale oil producers' resilience in cutting costs to make some
wells profitable at as low as $40 a barrel means that North America has effectively become a swing producer that will be able
to respond rapidly to any global supply shortage. ‘I don't quite share the same view that others have that we are somehow on
the edge of a precipice. I think because we have confirmed viability of very large resource base in North America ... that serves
as enormous spare capacity in the system,’ Tillerson told the Oil & Money conference.” [Independent, 10/21/16]
BELIEVED NATURAL GAS WAS COAL’S REPLACEMENT
Predicted Natural Gas Would Overtake Coal Within Twenty Years
Rex Tillerson Touted Natural Gas’ Ability To Displace Coal. According to Platts Oilgram News, “Tillerson placed gas at
the forefront of the effort to meet future growth in energy demand, which he saw as a constant challenge, despite talk of
potential oversupply in the short term. ExxonMobil expects unconventional gas production to rise 400% over the next three
decades, he said, pointing out that by 2025 natural gas would overtake coal as the second most important energy source after
oil. Natural gas, he said, was key to combining environmental progress with economic development, referring both to its
flexibility as an energy source and its ability to displace coal. Tillerson’s comments came the same day as the International
Energy Agency said it sees US’ break-neck pace of shale and unconventional gas developments allowing the country top
overtake Russia as the world’s biggest gas producer in 2017.” [Platts Oilgram News, 6/6/12]
2015: Rex Tillerson Said Exxonmobil Predicted “Natural Gas To Overtake Coal As The Second Most
Significant” Energy Source By 2025. According to “Natural Gas and the Policies of the Future,” “Natural gas is
increasingly recognized as a reliable and affordable fuel with a wide variety of uses. For these reasons, we project global
demand for natural gas will rise by 65 percent from 2010 to 2040. This will be the largest volume growth of any energy
source. In fact, around the year 2025, we expect natural gas to overtake coal as the second most significant contributor
behind oil in meeting global energy needs. Projecting out to 2040, natural gas supplies from conventional sources will
remain the majority of production. Nevertheless, because of new technologies, unconventional natural gas supplies are
likely to grow by about 300 percent.” [Rex Tillerson, “Natural Gas and the Policies of the Future,” World Gas
Conference Paris, France, 6/2/15]
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Rex Tillerson Said Gas Would Overtake Coal As The Second Biggest Energy Source By 2025. According to
Natural Gas Week, “Echoing the IEA’s rosier projections for natural gas, Exxon Chief Executive Rex Tillerson said gas
will overtake coal as the second-biggest contributor to the global energy mix by 2025.” [Natural Gas Week, 6/11/12]
Globe And Mail: Tillerson “Said The Company Is Forecasting That Natural Gas Demand Will Significantly
Outpace Demand For Both Oil And Coal Over The Next Two Decades.” According to The Globe And Mail, “In a
conference call with analysts, Exxon CEO Rex Tillerson said the acquisition is meant to build the company’s asset base for the
next 20 to 30 years, and will complement its foreign unconventional gas as-sets, including its participation in the Montney and
Horn River shale plays in northeastern British Columbia. He said the company is forecasting that natural gas demand will
significantly outpace demand for both oil and coal over the next two decades, driven by growing consumption of electricity.
Natural gas is increasingly the fuel of choice for power providers because it emits less greenhouse gas pollution than coal, and
is more economical than coal or nuclear for smaller power plants.” [The Globe And Mail, 12/15/09]
Exxon Mobil Analysis Predicted Gas Would “Overtake Coal As The Second-Largest Energy Source Behind Oil.”
According to Platts Coal Outlook, “Economic growth worldwide will drive demand for electricity powered by natural gas over
the next 20 years, according to an annual outlook released by ExxonMobil January 27. Global demand for energy of all kinds
will increase by 35% by 2030, with demand in emerging countries rising by more than 70%, according to the outlook, which
ExxonMobil uses to help guide its global invest-ment decisions. That demand will increasingly be met by gas, which is
expected to overtake coal as the second-largest energy source behind oil, the outlook predicts.” [Platts Coal Outlook, 1/31/11]
Argued Natural Gas Was A Cleaner And More Affordable Way To Meet Energy Needs
Rex Tillerson: “The Forecasts Also Show A Shift Toward Natural Gas As Businesses And Governments Look For
Reliable, Affordable And Cleaner Ways To Meet Energy Needs.” According to Platts Coal Outlook, “‘Our energy
outlook clearly points to a growing demand for energy globally which reflects improving living standards for millions of
people around the world,’ ExxonMobil Chairman and CEO Rex Tillerson said in a statement. ‘The forecasts also show a shift
toward natural gas as businesses and governments look for reliable, affordable and cleaner ways to meet energy needs. Newly
unlocked supplies of shale gas and other unconventional energy sources will be vital in meeting this demand.’” [Platts Coal
Outlook, 1/31/11]
Exxon Mobil: “Under Any Scenario, Natural Gas Is An Attractive Fuel Choice For Power Generation. It Is
Abundant And Produces Up To 60% Less CO2 Emissions Than Coal.” According to Global Power Report, “In the
developed world, gas will overtake coal as the dominant fuel for electricity production, ExxonMobil predicted. ‘Under any
scenario, natural gas is an attractive fuel choice for power generation. It is abundant and produces up to 60% less CO2
emissions than coal.’ Also, ‘gas-fired generation plants are based on proven technology, can be built quickly and are already
cost-effective today,’ the supermajor said. ‘ExxonMobil expects demand for natural gas for power generation to rise by about
85% [globally] from 2005 to 2030. By 2030, gas will be providing more than 25% of the world’s electricity needs and will be
well positioned to become the top source for electricity production.’” [Global Power Report, 2/3/11]
Rex Tillerson Said ExxonMobil Believes Natural Gas Superior To Coal In “Power Generation” And “Producing
Fewer Greenhouse Gas Emissions.” According to The Dallas Morning News, “Exxon officials expect demand for natural
gas to grow strongly. They plan to develop XTO into a global company to develop ‘unconventional’ resources, or natural gas
and oil in fields that require new technology to drill. Shale gas is an example. ‘Exxon Mobil’s energy outlook indicates that gas
will grow more rapidly than any other major energy source given its availability and relatively low carbon profile,’ Exxon chief
executive Rex Tillerson said. ‘We believe gas is the fuel of choice for power generation, producing fewer greenhouse gas
emissions than other electrical-generation fuels, such as coal.’” [The Dallas Morning News, 6/26/10]
Claimed Natural Gas Would Be The Fastest Growing Source Of Energy
2005: Rex Tillerson Predicted That Natural Gas Will Be The Fastest Growing Source Of Energy And That Markets
For More Traditional Sources Of Energy Have “Either Plateaued Or Are Beginning To Decline.” “‘Among the
various sources to supply the energy demand, gas will be the fastest-growing,’ said Mr. Tillerson at ExxonMobil, which expects
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it to provide about a quarter of the world's energy by 2030. ‘Supplies that have historically fed [industrialized] markets have
either plateaued or are beginning to decline. And that's what's creating this global LNG trade.’” [Financial Times, 3/4/05]
Exxon Mobil Predicted Natural Gas “As The Fuel Of The Future” And Expected North American Shale To “Help
The US Meet More Than Half Of Its Gas Needs” By 2030. According to Platts Oilgram News, “Natural gas is emerging
as the fuel of the future as developing nations increase their power generation needs through 2030, according to global energy
behemoth ExxonMobil. And the industry will need trillions of dollars in investment during the next two decades to meet
global energy demand, which is expected to grow by 65% in developing nations, the company concluded December 8 in its
annual ‘Outlook for Energy: A View to 2030.’ But the world’s largest oil company also said it expects the development of
North American shale plays will help the US meet more than half of its gas needs from unconventional supplies by 2030.
‘There will be an expansion of natural gas supply, particularly in the US where unconventional gas supplies are expected to
satisfy more than 50% of gas demand by 2030,’ the company said.” [Platts Oilgram News, 12/9/09]
Supported Using Natural Gas For Power Generation, Rather Than Cars Or Trucks
Rex Tillerson Wanted Natural Gas To Be Used In Power Generation, Not As Fuel For Cars Or Trucks. According to
The Dallas Morning News, “Exxon Mobil Corp. chief executive Rex Tillerson, it seems, has not joined the T. Boone Pickens
army. Pickens has been stumping for the past two years for Americans to shift to natural gas as a vehicle fuel, particularly for
heavy duty trucks. He says the move would help wean the U.S. off of foreign oil, support domestic natural gas, cut energy
costs and reduce pollution. Tillerson said he doubts natural gas would accomplish all of that. And he isn’t just promoting his
own petroleum products - he’s investing billions of dollars to boost Exxon’s natural gas production. He just thinks we’ll need
more natural gas for power generation, not for cars and trucks. For one thing, refueling stations are costly, as much as $1
million, he said. ‘If you’re a mom-and-pop retailer, that’s almost impossible to do without a lot of help,’ Tillerson said. For
long-haul trucks, ‘I can’t make the math work on why anybody would do that,’ he said, since the trucking industry relies on
service stations across the country.” [The Dallas Morning News, 3/12/10]
2010: Rex Tillerson: “We Believe Gas Is The Fuel Of Choice For Power Generation, Producing Fewer Greenhouse
Gas Emissions Than Other Electrical-Generation Fuels, Such As Coal.” According to The Dallas Morning News,
“Exxon officials expect demand for natural gas to grow strongly. They plan to develop XTO into a global company to develop
‘unconventional’ resources, or natural gas and oil in fields that require new technology to drill. Shale gas is an example. ‘Exxon
Mobil’s energy outlook indicates that gas will grow more rapidly than any other major energy source given its availability and
relatively low carbon profile,’ Exxon chief executive Rex Tillerson said. ‘We believe gas is the fuel of choice for power
generation, producing fewer greenhouse gas emissions than other electrical-generation fuels, such as coal.’” [The Dallas
Morning News, 6/26/10]
OPPOSED NATURAL GAS MANDATES & REGULATIONS
Exxon Mobil Vice President: “We Support Including Natural Gas Among Clean Energy Alternatives. We Do Not
Support Mandates.” According to Oil & Gas Journal, “Federal tax subsidies for oil and gas which US President Barack
Obama mentioned in his 2011 State of the Union address on Jan. 25 equal about $3/MMbtu, compared to $5/ MMBtu for
ethanol, according to William Colton, ExxonMobil’s vice-president for corporate strategic planning, who also participated in
the teleconference. ‘We support including natural gas among clean energy alternatives. We do not support mandates,’ he said.
‘Any intervention by government into markets comes at a cost to consumers and the economy. Picking winners and losers
would be dangerous. It would hurt this country’s ability to compete.’” [Oil & Gas Journal, 2/7/11]
Rex Tillerson Said That Governments That Strictly Regulated Natural Gas Development Were “Walking
Backwards.” According to Oil & Gas Journal, “Governments that implement overly stringent policies for the development
of natural gas resources, including shale gas and coal-seam methane, could hinder economic growth and risk seeing their
economies go ‘backwards,’ ExxonMobil Corp. Chief Executive Rex Tillerson warned recently. Speaking June 5 to the World
Gas Conference in Kuala Lumpur, Malaysia, Tillerson stopped short of addressing his remarks toward any specific country.
He said industry and governments can study and learn from the successes and shortcomings of the North American shale
experience. ‘Governments must be prudent so as not to stifle development or the investments in innovation that improve
safety and performance,’ Tillerson said. ‘Regulations must strike an appropriate balance between proper risk management and
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economic viability. ‘Governing or setting policy and regulation based upon the precautionary principle will stifle innovation
and investment and bring development to a standstill. I recognize this is, in fact, the objective of some. But if governments put
development of these new sources of energy at a standstill, they will find their economies walking backwards,’ Tillerson said.”
[Oil & Gas Journal, 7/2/12]
FRACKING
Opposed Fracking Regulations
Tillerson Opposed Federal Involvement In Hydraulic Fracking Regulation
Rex Tillerson Opposed Federal Involvement In Regulating Hydraulic Fracking. According to a Hearing on the
ExxonMobil-XTO Merger, “TILLERSON: I do think, as Congressman Doyle so in great detail described, the state regulation
in the state of Pennsylvania is not unusual. And most states have very detailed regulations around our drilling activities and
our hydraulic fracturing activities that govern the protection of the drinking water aquifers in all states. Those, I think, have
been tested, and they've been proven to be quite adequate. There have been over a million wells hydraulically fractured in the
history of the industry. And there is not one -- not one -- reported case of a fresh water aquifer having ever been
contaminated from hydraulic fracturing. Not one. The EPA has testified before the Congress last summer that they cannot
document a single case. The New York Water Resources Development Board investigated hydraulic fracturing. They could
not document any threat to safe drinking water. So I think the real question is, well, what's the need for federal oversight,
other than it's just going to add another layer to the states. That will add cost. A uniform regulation, Congressman Doyle,
would not be preferable, because the water aquifers and the geology and the structure is different for every state. And they
know their water resources and their requirements better than anyone up here is going to know. And they're going to protect
them better. And so, the states are regulating this well, and a uniform rule would actually add a layer of complexity, I think,
for the state regulator. [Rep. Edward J. Markey Holds a Hearing on the ExxonMobil-XTO Merger, 1/20/10]
2010: Tillerson Claimed State Regulations Were Adequate
Rex Tillerson Insisted Increased Regulation Of Fracking Would Only Harm Production Levels And Argued State-
Level Regulation Was Adequate. According to The Dallas Morning News, “Energy companies insist hydraulic fracturing is
safe and hasn’t contaminated water sources. While some companies say they don’t object to disclosing ‘fracking’ chemicals,
they worry that handing regulation to the Environmental Protection Agency could lead to expensive new rules or a ban on the
practice. ‘Anytime you add a layer [of regulation], you add a cost,’ Exxon chief executive Rex Tillerson told lawmakers. ‘And
when you add a cost, you just knocked off an increment of production because somewhere out there is the marginal-cost well,
and it doesn’t get drilled.’ Oil and gas companies say state regulators, such as the Texas Railroad Commission, adequately
oversee the production techniques that are used in the Barnett Shale and other fields.” [The Dallas Morning News, 1/21/10]
2010: Only Four States Had Laws Directly Regulating Hydraulic Fracturing. According to The Dallas Morning
News, “But Rep. Diana DeGette, D-Colo., the bill’s author, said Wednesday that only four states have laws directly
regulating hydraulic fracturing. Her legislation would subject the activity to regulation under the federal Safe Drinking
Water Act.” [The Dallas Morning News, 1/21/10]
Tillerson Claimed Additional Regulation Would Impede Energy Development
Rex Tillerson Said Regulation Of Fracking Was Impeding Development Of Gas Fields “Vital To America’s
Economic Success.” According to Sydney Morning Herald, “EXXONMOBIL plans an advertising campaign to defend
natural-gas drilling techniques that landowners and environmental groups say are contaminating drinking water, causing cluster
earthquakes and polluting soil and air. Overzealous regulation of hydraulic fracturing (fracking) - used to extract tightly held
gas in deeply buried shale beds - is impeding development of gas fields ‘vital to America’s economic success’, the chief
executive of Exxon, Rex Tillerson, said yesterday after the company’s annual meeting in Dallas.” [Sydney Morning Herald,
5/27/11]
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Rex Tillerson Said Regulation Was Holding Back The Potential Of Fracking And Said Opponents To Fracking
Were Misinformed. According to MSNBC’s All in with Chris Hayes, “HAYES: So for ExxonMobil, fracking is the future.
And they`d like it with as little regulation as possible. TILLERSON: It`s largely, I think, regulatory policy is what could upset
the realization of this tremendous potential for our economy. HAYES: As for people who are concerned about fracking in
their backyards -- well, they`re misinformed. TILLERSON: There has not been a documented case of substantial or even, I
would argue, insignificant contamination or freshwater as a result of hydraulic fracturing. So I think the fears are misplaced.
Some has been through a lot of less than perfect information that`s been provided.” [MSNBC’s All In with Chris Hayes,
2/24/14]
Tillerson Pointed To U.S. Fracking To Pressure Europe To Allow It
Rex Tillerson Pushed European Governments To Drop Objections To Hydraulic Fracking. According to Platts
Oilgram News, “European governments should grant companies access to natural gas reserves by dropping objections to
hydraulic fracturing in order for the industry to meet future growth for the fuel, ExxonMobil CEO Rex Tillerson said
Tuesday. Europe could have ‘significant and meaningful’ natural gas potential, but countries including Germany and France
had effectively banned fracking on environmental grounds, Tillerson told the World Gas Conference in Paris. Tillerson
pointed to data from the US and Canadian experience showing shale gas produc-tion could be carried out safely.” [Platts
Oilgram News, 6/3/15]
Exxon Mobile Ran Ads In Support Of Fracking
Rex Tillerson Announced That ExxonMobil Was Running Advertisements In Support Of Fracking. According to the
Detroit Free Press, “Exxon Mobil’s big push into natural gas is threatened by opposition to drilling techniques that have
unlocked buried reserves. Now the oil giant is trying to change public opinion about how it gets the gas. CEO Rex Tillerson
said Wednesday that the company is running advertisements, conducting town hall meetings and talking to regulators to
convince Americans that drilling using a method known as fracking is safe. Exxon is also paying for polling, but Tillerson said
it’s too soon to know whether its campaign is working.” [Detroit Free Press, 5/26/11]
Claimed Environmental Concerns Related To Hydraulic Fracking “Manufactured Fear”
2011: Rex Tillerson Called Opposition To Hydraulic Fracturing And Concerns Around Its Environmental Impact
“Manufactured Fear.” According to the Washington Ideas Forum, TILLERSON: “A lot of the opposition around shale gas
today and a hydraulic fracturing of storing is all manufactured fear. People have manufactured this fear. If you look at the
facts, and there have been studies that have been done by the EPA, there have been studies done by air quality bureaus, there
is no measurable health threat from hydraulic fracturing to fresh water. There is no measurable health threat related to air
emissions associated with hydraulic fracturing and that’s what the facts are. So the opponents-- I have to just characterize them
as manufacturing fear, because they have no facts to stand behind their assertions.” [Rex Tillerson at the Washington Ideas
Forum (via CSPAN), 10/6/11]
Tillerson Claimed That The Public Was “Illiterate” On Fracking
Rex Tillerson Said Public Opposition To Fracking Was A Result Of “Energy Illiteracy Of The Public.” According to
Dallas Morning News, “Chief executive Rex Tillerson blames the public opposition to fracking on ignorance. At the Exxon
annual meeting this year, Tillerson spoke of the ‘energy illiteracy of the public, and I don’t mean that in a derogatory sense. It’s
a subject that people are just not that interested in until the price at the pump hits a certain level.’ He also scolded reporters:
‘You want to help with this, do your job. A lot of you all do a terrible job digging into the facts.’” [Dallas Morning News,
8/5/12]
Tillerson Claimed The Media Perpetuated Falsehoods About Fracking
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Rex Tillerson Blamed The “Manufacturers Of Fear” For Driving A Negative Narrative Surrounding Hydraulic
Fracturing. According to the Council on Foreign Relations, “MR. MURRAY: I want to open it up to questions from the
group, but before I do, I think I should probably ask about your media comments. At the time of the Deepwater Horizon oil
spill, folks in your company urged us not to treat all oil companies the same. So I wonder if I could ask you if perhaps you're
painting with a very broad brush when you talk about media covering hydraulic fracturing. MR. TILLERSON: There's
probably a couple of camel hairs in the brush that I would say don't apply. (Laughter.) But this is an ongoing dialogue I've
been having with people in your profession now for some time; that for whatever reason, a large number of people in the
journalism profession simply are unwilling to do their work. They're unwilling to do the homework. And so they get
something delivered to them from the manufacturers of fear; it makes a great story. I mean, it -- I mean, it does. It makes a
great story. People love that kind of stuff. The consuming public loves it, because it goes to what, you know, their fears are.”
[Council on Foreign Relations, 6/27/12]
Rex Tillerson On Media: “What I Would Wish And Hope That People Would Do Is Return To A Journalism
Standard That Says, You Know, I Need To Check And See What's What Before I Run With This.” According to
the Council on Foreign Relations, “What I would wish and hope that people would do is return to a journalism standard
that says, you know, I need to check and see what's what before I run with this. And there's not a lot of that going on,
quite frankly. And it's not because we're not trying. We provide a lot of information. There are a lot of sources of
science- based information. There are a lot of sources that can debunk claims that are made specific -- you know, specific
examples.” [Council on Foreign Relations, 6/27/12]
Tillerson Claimed Gasland Documentary Had Been Debunked
Rex Tillerson Stated That Every Aspect Of The Critical Fracking Documentary, “Gasland,” Had Been Debunked.
Council on Foreign Relations, “The fears are real. We don't discount that people's fears are their fears. We have to address
that. We want to address it with sound science, we want to address it with real data, and somehow we have to overcome the
manufactured fear which gets most of the headlines. The ‘Gasland’ movie did more to set us back in this endeavor than
anything else out there, and yet every aspect of that movie has been completely, scientifically debunked. Nobody's written that
story. I don't know why, but nobody's written that story.” [Council on Foreign Relations, 6/27/12]
Tillerson Claimed That Fracking Unfairly Had A Bad Name Due To “Early Detractors”
Rex Tillerson On Fracking: “As Often Happens With These Things, The Early Detractors Slap A Label On
Something And It Takes A Long Time To Peel It Off.” According to Dallas Morning News, “Exxon Mobil Corp. chief
executive Rex Tillerson defended natural gas drilling Wednesday and said he expects the company to double its North
American production in the next decade. Tillerson acknowledged at the company’s annual shareholder meeting that hydraulic
fracturing, a technique used in North Texas and elsewhere on wells, has risks, such as air pollution and water handling. But
they aren’t the risk that the public fears - groundwater contamination - and they are risks the industry can handle. Tillerson
also took the media to task for focusing on the water contamination issue. ‘As often happens with these things, the early
detractors slap a label on something and it takes a long time to peel it off. And you guys help them slap it on there,’ Tillerson
said to journalists after the shareholder meeting.” [Dallas Morning News, 5/26/11]
Claimed There Was No Proof Fracking Contaminated Water Supplies
Rex Tillerson Said That Suggestions That Fracking Can Contaminate Drinking Water Were “Just Simply Not
Backed Up By Facts.” According to Natural Gas Week, “As the largest natural gas producer in the US, Exxon Mobil has a
lot at stake in the debate about the growing use of hydraulic fracturing. So Exxon Chief Executive Rex Tillerson did not mince
words when he addressed the issue at the company’s annual shareholder meeting in Dallas last week. ‘There are risks
[associated with fracturing] and I’m not trying to say that there aren’t. ... But there are a lot of pretty casual -- to be kind --
statements that are just simply not backed up by facts,’ Tillerson told reporters after the meeting. Tillerson was referring to
suggestions that hydraulic fracturing can contaminate drinking water supplies with methane -- the main component of natural
gas -- and various harmful chemicals. Such claims are frequently made by environmentalists, journalists, politicians and peo-ple
who live near drilling sites.” [Natural Gas Week, 5/30/11]
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Rex Tillerson: “There Is Not One, Not One, Reported Case Of A Freshwater Aquifer Having Ever Been
Contaminated From Hydraulic Fracturing.” According to the International Herald Tribune, “‘There have been over a
million wells hydraulically fractured in the history of the industry, and there is not one, not one, reported case of a freshwater
aquifer having ever been contaminated from hydraulic fracturing. Not one,’ Rex W. Tillerson, the chief executive of Exxon
Mobil, said last year at a Congressional hearing on drilling in Washington. It is a refrain that not only drilling proponents, but
also lawmakers and even past and present directors of the U.S. Environmental Protection Agency, have repeated often. But
there is in fact a documented case, and the E.P.A. report that discussed it suggests there may be more. Researchers, however,
were unable to investigate many suspected cases because their details were sealed from the public when energy companies
settled lawsuits with landown-ers.” [International Herald Tribune, 8/5/11]
Tillerson Claimed Water Table Contamination Could Have Been Caused By “Old Wells” Or Some Other
Reason, Not Fracking
Rex Tillerson Claimed Water Table Contamination Was Caused By Old Wells, Not Fracking. According to Dallas
Morning News, “Tillerson said he understands well the three main concerns about fracking: contamination of groundwater,
handling of used frack water and air pollution. He said there’s no evidence that current natural gas drilling causes gas to
contaminate underground water supplies. People who, after a nearby gas well goes in, can light their faucets on fire because of
the natural gas contamination are suffering because of some other reason, he said. Maybe an old gas well was disturbed and
began leaking. Or maybe when the population grows in rural areas, people drill more water wells and draw more water from
the underground table, stirring up naturally occurring gas, or gas that leaked many decades ago. ‘You don’t have to be too
much of a snoop-dog reporter to think there were probably wells drilled in the 1920s, and that people didn’t care about
contaminating the water table,’ he said. ‘All of that water withdrawal has moved a lot of this contamination around and made it
very difficult to know where it originated.’” [Dallas Morning News, 5/26/11]
Tillerson: “In Most Cases We’ve Investigated, We Find Contamination Of Fresh Water More Often Than
Not Has Been Associated With The Remnants Of What Happened Many Years Ago.” According to Platts
Oilgram News, “At a post-meeting press conference, Tillerson noted that in Texas, oil and gas production has taken
place for more than 100 years, and has been around for 150 years in Pennsylvania, where shale gas production has
boomed in recent years with exploitation of the huge Marcellus Shale field there. Fracturing ‘has been portrayed as a
new technology, but it’s been around 50-60 years,’ he said. ‘We just changed the application of it.’ He said
contamination of groundwater that has occurred--a widespread concern cited by fracking opponents--has largely been
in these mature areas that now host a lot of renewed activity. Withdrawal of water over the years from aquifers due to
population growth ‘has moved a lot of this contamination around,’ he said. ‘In most cases we’ve investigated, we find
contamination of fresh water more often than not has been associated with the remnants of what happened many
years ago,’ Tillerson said.” [Platts Oilgram News, 5/26/11]
Tillerson Claimed Contaminated Drinking Water Was Caused By Suburbia Expansion, Not Fracking
Rex Tillerson Said That Contaminated Drinking Water Was Caused By Population Increases And The Expansion
Of Suburbia, Not Fracking. According to Natural Gas Week, “The Exxon chief went on to note that any methane found in
aquifers that was not the result of natural seepage was likely left over from drilling operations that took place decades ago.
Much of the current shale gas development in the US brings operators back to old producing areas that were abandoned by
the industry after the cheaper, conventional resources were depleted. These areas are often home to thousands of abandoned
wells, many of which were drilled long before such contamination issues were well understood, Tillerson said. So why is
methane suddenly appearing in the water system? One reason is population growth and the continuing expansion of suburbia,
Tillerson said.” [Natural Gas Week, 5/30/11]
Claimed Fracking Risks Were “Manageable”
Rex Tillerson Said The Risks From Fracking And Horizontal Drilling Were “Entirely Manageable.” According to
Inside F.E.R.C.’S Gas Market Report, “Tillerson also predicted that over the longer term, the dramatic growth of recoverable
US gas reserves and supplies will have a transformative effect on the economy. And he contended that the exploration-andproduction
industry is capable of safely mitigating the risks inherent in the production of oil and gas. ‘If you look at
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technologies that are front and center around shale resources such as hydraulic fracturing and horizontal drilling, and how we
protect groundwater zones and reduce emissions, these risks are entirely manageable,’ he said.” [Inside F.E.R.C.’S Gas Market
Re-port, 7/6/12]
Claimed There Was Only A “Low-Risk” To Drinking Water
Tillerson Declared That Fracking Was A “Very Low” Risk To Underground Drinking Water. “He also
declared that the threat to under­ ground drinking water from such drilling was ‘very low.’ Tillerson’s emphatic tone
echoed Lee Raymond’s early confidence about the evidence on climate change, but he was unabashed. Within
ExxonMobil, there was controversy about shale gas, but it did not involve environmental issues. It concerned the
company’s strategies for replacing the amount of oil and gas it pumped and sold annually.” [Private Empire:
ExxonMobil and American Power, pg. 586, 2012]
2012: Tillerson Supported Efforts To Disclose Chemicals Used In Hydraulic Fracturing Process
Rex Tillerson Said Oil Companies Should Support Efforts To Disclose All Materials Used In Hydraulic Fracking.
According to The Dallas Morning News, “Tillerson also urged more industry involvement with the communities where the
companies want to drill. He said the companies should support efforts to disclose all materials used in hydraulic fracturing,
both in the United States and in Europe, where France and Bulgaria have imposed moratoriums on the practice.” [The Dallas
Morning News, 3/10/12]
Federal Land
SUPPORTED OPENING FEDERAL LANDS TO OIL EXPLORATION & DRILLING
2006: Tillerson Admitted More “Mishaps” Would Occur By Allowing More Oil Exploration On US Lands
And Waters
2006: Rex Tillerson On The Environmental Impact Of Allowing More Oil Exploration On US Lands And Waters:
“Are We Going To Have Mishaps? Yes, But We're Able To Manage Them, Mitigate The Effects, And Move On.”
According to the Boston Globe, “Currently, Tillerson said, government policies ban exploration of areas of the United States
containing 31 billion barrels of oil and 105 trillion cubic feet of gas. Companies like Exxon could tap them ‘safely and with a
minimal environmental imprint,’ Tillerson said, but ‘what we lack is permission to access them.’ ‘Ours is the only country in
the world with major oil and natural gas resources that, as a matter of policy, denies its own citizens the economic benefits of
developing and utilizing those resources that belong to its citizens,’ Tillerson said. In a later question and answer session,
Tillerson elaborated on the potential environmental impact. ‘Are we going to have mishaps? Yes, but we're able to manage
them, mitigate the effects, and move on,’ he said.” [Boston Globe, 12/1/06]
Tillerson Repeatedly Called For Opening Federal Land Reserves
2012: Rex Tillerson Supported The Idea Of Opening Up Any Areas Where Oil Might Be Available For Exploration
And Drilling. According to NBC, “LAUER: One of the things he's calling for is open everything up... Mr. TILLERSON:
Right. LAUER: ...everything for exploration and drilling, and that's going to--just the even thought of that, that all that oil
might be available, would bring prices down. Mr. TILLERSON: Well, I've never taken myself to the business of trying to
predict prices. What I think's important in developing our own natural resources is to know that we do influence that market
by having supplies that are stable, that are not subject to geopolitical interruption. The revenues are staying here, the taxes that
are generated are staying here, and very importantly, the jobs that are created are staying here.” [NBC, 3/9/12]
2011: Rex Tillerson Suggested ExxonMobil Would Like To Exploit The Remaining Undeveloped Oil And Gas
Resources Under Federal Lands. According to the Washington Ideas Forum, TILLERSON: “We would do more in the
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United States if we are given the opportunity to do so. We have said this many times. It is all about access. When you have
two-thirds of the remaining conventional oil resource potential sits under federal lands that we have no access to, 40% of
natural gas resource potential sits under federal lands that we have no access to. We don’t have access--we can’t invest; we
can’t spend the money.” [Rex Tillerson at the Washington Ideas Forum (via CSPAN), 10/6/11]
2010: Rex Tillerson Advocated For Drilling On Federal Lands. According to Nightly Business Report, “GHARIB: Mr.
Tillerson, today President Obama said that he would like the U.S. to double its exports over the next five years. What can
Exxon do to help meet that goal? TILLERSON: There are large swathes of land with resource potential that are held by the
Federal government. And it`s our view that we need to move those into the space where the industry can begin to work on
those. Capture the job creation, capture the energy supplies that we can use locally, curtail some of the imports. We`re never
going to curtail them all. And that would be supportive of growing the economy first. You can`t export if you are not making
it.” [Nightly Business Report, 3/11/10]
2006: Rex Tillerson Said Government Should Open Additional Areas To Exploration And Drilling If It Is Serious
About Boosting Domestically-Produced Oil Supply. According to the Wall Street Journal, “Jeffrey Ball The Week Ahead
column predicts petroleum executives will argue that government needs to help them find new supplies of oil and natural gas;
Exxon Mobil Corp Chmn and CEO Rex Tillerson rejects as flawed policy idea that US can really become energy independent;
says government should open additional areas to exploration and drilling if it is serious about boosting domestically-produced
oil supply.” [Wall Street Journal, 3/11/06]
2011: Tillerson Claimed Increased Domestic Oil Production Would Increase U.S. Tax Revenue
Rex Tillerson Argued The US Should “Lift Restrictions On Developing ‘Our Nation’s Enormous Untapped Energy
Supplies” To Raise Revenue. According to The Christian Science Monitor, “At issue is whether the Big Five oil companies
- which to-gether made more than $35 billion in profits in the first quarter of 2011 - need help from taxpayers, espe-cially with
oil selling for more than $100 a barrel. […] Legislation pending in the Senate would cut tax breaks to the top oil producers by
$21 billion over 10 years - and use the savings to reduce the national deficit. Industry CEOs say such a move would be
discriminatory and would hurt US jobs and their ability to compete for resources with giant, state-owned rivals. The CEOs
represented companies ranging from Exxon Mobil, which made $69 billion in profit in the quarter ending March 31, to BP
America, which is still recovering from the Gulf oil spill. Others included Chevron, Conoco Philips, and the US branch of
Royal Dutch Shell. The CEOs asserted that the proposed tax changes would discourage domestic production, cut jobs, and
raise the costs of energy to American consumers. ‘It is not simply that [the proposed tax chang-es] are misinformed and
discriminatory. They are counterproductive,’ said Exxon Mobil CEO Rex Tillerson. The way to reduce energy prices and raise
revenue for government is to lift restrictions on developing ‘our nation’s enormous untapped energy supplies,’ he added.”
[The Christian Science Monitor, 5/12/11]
2008: Claimed U.S. Oil And Gas Resources Could Supply More Than 50 Percent Of Demand If Opened
Up
2008: Rex Tillerson: U.S. Oil And Gas Resources Meet 50% Of Domestic Demand But “Could Supply More If More
Of It Were Opened To Exploration, Development, And Production.” According to Oil & Gas Journal, “ExxonMobil
Chairman and Chief Executive Officer Rex W. Tillerson said the US can still boost its oil production. ‘The US was endowed
with the second largest oil and gas resource base in the world, and even after more than a century of development and
production is still ranked No. 5 in remaining oil and gas,’ he said. US resources meet 50% of domestic demand but ‘could
supply more if more of it were opened to exploration, development, and production,’ Tillerson said. ‘Federal and state
governments...have ruled off-limits an estimated 31 billion bbl of recoverable oil and 105 tcf of natural gas.’ The majority is in
the Rockies and offshore, not in the Arctic National Wildlife Refuge, and industry has the technology and experience to
produce safely and with minimal environmental footprint.” [Oil & Gas Journal, 1/7/08]
2007: Rex Tillerson Bemoaned That The U.S. Continues To Sit On “Billion Of Barrels” Of Potential Reserves
Which Oil Companies Have No Access To. According to Platts Oilgram News, “‘In the current high oil price
environment, some exporting and import-ing countries are losing sight of their interdependence,’ Tillerson said. ‘It is not a
resource problem, the world has plenty of oil resources, it has plenty of fossil fuel resources. It’s an issue of whether or not the
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investment dollars, the technology and the know-how to develop those resources...is going to be brought to bear on those
resources and that’s a decision for the host governments to make,’ he said. Many producing countries such as Russia and
Venezuela have been taking tighter control of their oil and gas industries over recent years, taking a bigger slice of growing oil
revenues and rewriting production contracts. Tillerson said the US is one of the countries which continues to sit on ‘billion of
barrels’ of potential reserves which oil companies have no access to. Tillerson said if this continued unchecked, resource
nationalism could have ‘severe consequences’ for the global economy and energy security over the longer term.” [Platts
Oilgram News, 11/13/07]
Tillerson Claimed Domestic Oil Production Would Lower Gasoline Prices
2006: Rex Tillerson Said The Best Hope For Lowering Gasoline Prices Is For Federal Officials To Allow More Oil
Exploration Off US Coasts And Under Federal Lands And National Parks. According to the Boston Globe, “Exxon
Mobil Corp.'s chief executive, making a Boston appearance yesterday, said the best hope for lowering gasoline prices is for
federal officials to allow more oil exploration off US coasts and under federal lands and national parks. Rex W. Tillerson,
speaking at the Boston College Chief Executives Club at the Boston Harbor Hotel, said: ‘It really is supply and demand driven.
If you want to bring the price down, you've got to increase supply, and access to our own resources would provide lower-cost
supply’ that could reduce gasoline prices. Currently, Tillerson said, government policies ban exploration of areas of the United
States containing 31 billion barrels of oil and 105 trillion cubic feet of gas. Companies like Exxon could tap them ‘safely and
with a minimal environmental imprint,’ Tillerson said, but ‘what we lack is permission to access them.’ ‘Ours is the only
country in the world with major oil and natural gas resources that, as a matter of policy, denies its own citizens the economic
benefits of developing and utilizing those resources that belong to its citizens,’ Tillerson said.” [Boston Globe, 12/1/06]
Rex Tillerson Laid Blame For Oil Prices On Political Regulation Inhibiting Access To Certain Areas The Might
Contain Oil And Gas. According to The New York Times, “Q.Globally, the picture for oil supplies looks pretty bleak.
Where are new supplies going to come from in the next five years? A. There is an access issue, in this country, and in many
countries around the world. The problem with the supply side of the equation is a problem of accessing the resources in the
ground so they can be explored and developed. That’s a political question where governments have made choices. This is
something where the United States has to look at the mirror first.” [The New York Times, 7/19/08]
2006: Tillerson Claimed The U.S. Government Was Denying Citizens “Economic Benefits” By Refusing
To Open Up Oil And Natural Gas Resources
2006: Rex Tillerson: “Ours Is The Only Country In The World With Major Oil And Natural Gas Resources That, As
A Matter Of Policy, Denies Its Own Citizens The Economic Benefits Of Developing And Utilizing Those
Resources That Belong To Its Citizens.” According to the Boston Globe, “Rex W. Tillerson, speaking at the Boston
College Chief Executives Club at the Boston Harbor Hotel, said: ‘It really is supply and demand driven. If you want to bring
the price down, you've got to increase supply, and access to our own resources would provide lower-cost supply’ that could
reduce gasoline prices. Currently, Tillerson said, government policies ban exploration of areas of the United States containing
31 billion barrels of oil and 105 trillion cubic feet of gas. Companies like Exxon could tap them ‘safely and with a minimal
environmental imprint,’ Tillerson said, but ‘what we lack is permission to access them.’ ‘Ours is the only country in the world
with major oil and natural gas resources that, as a matter of policy, denies its own citizens the economic benefits of developing
and utilizing those resources that belong to its citizens,’ Tillerson said.” [Boston Globe, 12/1/06]
Senator Chuck Schumer: Exxon Earned Record Profits As It Called For Opening Up More Land To Drilling
Sen. Chuck Schumer Criticized Exxon’s Record Profits And Call For Opening Up More Land To Drilling, Instead
Of Investing Of Alternative Energy Opportunities. According to The Washington Post, “Later, Kenneth P. Cohen,
Exxon’s vice president for public affairs, said the company would like to ‘do more’ and urged Congress to open up areas off
U.S. shores to oil and gas drilling. ‘Our Congress needs to give us access to areas currently off-limits to the industry,’ he said.
‘The best way to bring downward pressure on prices is by bringing on new supply while doing everything we can to use energy
efficiently.’ Leading Democrats, who have opposed opening up areas off-limits to drilling, reacted sharply. ‘What’s shocking is
that Big Oil is plowing these profits into stock buybacks in-stead of increasing production or investing in alternative energy,’
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said Sen. Charles E. Schumer (D-N.Y.). ‘Why do they need more land to drill on when all their money is going into buying up
stock?’” [The Washington Post, 8/1/08]
Oil and Gas Industry
FOSSIL FUELS, GENERALLY
2016: Claimed Cuts In Oil Production Would Be Unacceptable For “Humanity”
2016: Rex Tillerson Said That Cutting Oil Production Was “Not Acceptable For Humanity.” According to the
Guardian, “Rex Tillerson, the boss of oil giant ExxonMobil, said cutting oil production was ‘not acceptable for humanity’ as
he fought off shareholders' and activists' attempts to force the company to fully acknowledge the impact of climate change on
the environment and Exxon's future profits. During a long and fractious annual meeting in Dallas on Wednesday, Tillerson,
who serves as Exxon's chairman and chief executive, beat back several proposals to force the company to take more action on
climate change. However, dissident shareholders won a vote that could make it easier for them to propose board candidates
concerned about climate change and remove incumbent directors.” [Guardian, 5/26/16]
Claimed There Was No “Plausible” Alternative To Oil
Rex Tillerson Routinely Argued There Was “No Plausible Alternative To Oil.” According to The Australian, “As a
result of these perverse incentives, Western energy executives invariably insist that there is no plausible alternative to oil. For
example, Rex Tillerson, chairman of Exxon, re-marked last year that he was not interested in biofuel research because ‘I do
not have a lot of technology to add to moonshine’.” [The Australian, 7/4/08]
Believed Fossil Fuels Would Continue To Play A Significant And Important Role
Rex Tillerson Insisted The World Would Rely On Fossil Fuels For Generations To Come “Whether People Like It
Or Not.” According to the Independent, “The boss of ExxonMobil said sky-high oil prices would only start to come down
when demand eased but he warned that the world would be reliant on fossil fuels for generations to come, ‘whether people
like it or not’. And Exxon itself would remain a petrochemical company, he insisted, after beating back dissident investors'
proposals which demanded that Exxon plough money into alternative energy, including wind and solar power.” [Independent,
5/29/08]
Rex Tillerson: “We Continue To Believe Fossil Fuels Will Have A Significant And Important Role To Play For As
Far As We Can See.” According to the New York Times, “At the same time, Exxon Mobil, Royal Dutch Shell and many
other companies are investing heavily in nat-ural gas as a lower-carbon answer to growing global energy needs. They view gas
as a clean fuel of the future. ‘We continue to believe fossil fuels will have a significant and important role to play for as far as
we can see,’ Exxon Mobil's chief executive, Rex W. Tillerson, said at the company's annual shareholders meeting in May.”
[New York Times, 11/8/16]
2006: Rex Tillerson: “Fossil Fuels Will Remain The Dominant Energy Source For The Fore-Seeable Future.”
According to the Boston Globe, “Exxon Mobil has been criticized by environmental groups for downplaying the possibility of
catastrophic climate change induced by growing fossil-fuel consumption. Tillerson, a 32-year company veteran who became
chief executive in January, stressed yesterday Exxon thinks ‘we should continue to fund ongoing scientific research, without
conditions or preconceived out-comes,’ aimed at documenting what climate change is happening and how best to deal with it.
Tillerson scoffed, however, at the idea that wind, solar power, or plant-derived ethanol will substantially replace oil, gas, and
coal anytime soon. ‘Fossil fuels will remain the dominant energy source for the fore-seeable future,’ Tillerson said.” [Boston
Globe, 12/1/06]
Tillerson Did Not Believe Reliance On Fossil Fuels Would Drastically Change In 20 Years
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2010: Rex Tillerson Said ExxonMobil Will Be “Not Much Different” In 20 Years Because The Energy Mix Over
That Span “Is Not Going To Be Markedly Different.” According to Newsweek, “It has surpassed Walmart as the U.S.
corporation with the largest revenue. Its placid CEO, Rex Tillerson, is Big Oil in a blue suit, his serenity grounded in a
certainty: His company can continue providing fossil fuels for a world that for the foreseeable future--at least 20 years--will
demand them in ever larger quantities. ‘You can’t rise above the facts,’ says Tillerson, who was born in Texas’s oil patch:
Wichita Falls. His foundational fact is that his company will be ‘not much different’ in 20 years because the energy mix over
that span ‘is not going to be markedly different.’ Eighty percent of the world’s energy comes from oil, natural gas, and coal.”
[Newsweek, 10/18/10]
Exxon Predicted Long-Term Global Growth For Oil Demand
Exxon Was Convinced The Only Way The Global Oil Demand Would Not Continue To Rise Through 2030 Was A
Decision By Governments To Agree To Limit Greenhouse Gas Emissions. According to Private Empire: ExxonMobil and
American Power, “ExxonMobil ‘s 2030 exercise suggested, by implication, the distinctive role that climate policy would play in
oil’s medium-term future. The essence of the forecast’s message was that the development of the global economy and
population ensured that oil production would rise. By mid­ century, some breakthrough in battery technology or solar panel
arrays might reduce the costs of those energy sources so radically that they could compete economically with oil and coal in
free markets, but ExxonMo­ bil’s in-house scientists did not believe such a breakthrough was conceivable before 2030. Until
then, there was only one unexpected development, one ‘black swan’ intervention that could shift the curve of rising global oil
demand: a decision by governments to limit greenhouse gas emissions by heavily taxing or capping the use of carbon-based
fuels. The ExxonMobil forecast numbers suggested that to make an impact on oil demand, the world’s governments would
have to reach a unified conclusion that climate change presented an emergency on the scale of the Second World War-a threat
so profound and disruptive as to require massive national investments and taxes designed to change the global energy mix.”
[Private Empire: ExxonMobil and American Power, pg. 310, 2012]
Dismissed Concerns Of Hitting Peak Oil Production
Tillerson: “With New Technology, We’re Always Finding More Oil. . . .We Will Achieve A Peak, Because It Is A
Finite Resource. But That Time Is Well Beyond Where We Are Today.” According to Private Empire: ExxonMobil and
American Power, “Time and again, forecasters failed to anticipate how technological innovation would free up or ‘discover’ oil
previously thought to be unrecoverable, ExxonMobil executives argued in their slide shows. The corporation demonstrated
that in 1925, the U.S. Geological Survey estimated the world’s conventional oil reserves to be only 60 billion barrels. By 1950,
mainstream estimates had risen to between 750 billion and 1.5 trillion barrels. By 1975, typical estimates were in the range of 2
trillion barrels. By 2000, they had grown to between 2.5 trillion and 3.5 trillion. These swelling numbers did not even account
for extra-heavy oil and tar sands oil deposits in places such as Venezuela, Canada, and Russia-perhaps another 4 trillion barrels.
Obviously, the actual amount of geological oil had not changed during these decades; all that had changed was the ability of
engineers to locate it and pump it profitably. As Tillerson put it: ‘With new technology, we’re always finding more oil. . . .We
will achieve a peak, because it is a finite resource. But that time is well beyond where we are today.’ The problem in the global
oil markets, Tillerson and his colleagues declared again and again-and the reason Americans so often gasped and sputtered
about prices when they pulled into their local stations after 2005-had not to do with geology. It was a result of geopolitics.”
[Private Empire: ExxonMobil and American Power, pg. 421, 2012]
September 2005: Rex Tillerson Claimed Conservative Estimates Of Remaining Global Oil Reserves Were “More
Than Twice All The Oil Recovered Up To Now In All Of Human History.” According to the Independent,
“Separately, Exxon's Mr Tillerson told the convention in South Africa that his company estimated that global energy demand
would increase by 50 per cent over the next 25 years. Mr Tillerson said that by some estimates there was as much as 7 trillion
barrels of oil yet to be discovered. On a more conservative basis, the world still had more than 3 trillion barrels from
conventional fields, oil sands deposits and other sources. 'That is more than twice all the oil recovered up to now in all of
human history,' Mr Tillerson said. Craig Pennington, energy analyst at Schroders in London, said: 'The message from these
two [Naimi and Tillerson] is that, 'Don't worry. We do have enough oil. Just give us time to bring it in.’” [Independent,
9/28/05]
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Claimed Oil Reserves Were Plentiful
2004: Rex Tillerson Maintained That There Is Plenty Of Oil And Gas Reserves To Growing Energy Demand.
“Besides briefly addressing guidance for 2005, Tillerson also fielded questions about OPEC and the future of Russia's
Gazprom after emphasizing his primary message to the group. In those prepared remarks, Tillerson stressed his view the
world boasts plenty of oil and gas resources to meet the challenges of growing energy demand. But he warned the industry will
need new technologies and astute management to achieve it. Tillerson limited the audience and press to written questions,
choosing three from a large stack before leaving for a trip overseas. Asked about 2005 guidance, he cited this year's investment
of $16-bil, with $12-bil of that in upstream E&P and said: ‘That's about where we'll be next year and for the foreseeable
future.’” [Platts Oilgram News, 12/9/04]
2010: Rex Tillerson: “We’ll Probably Never Exhaust The World’s Supply.” According to Newsweek, “When the first
commercial incandescent lightbulb was produced in 1879, 75 percent of U.S. energy demand was supplied by burning wood.
In the 1880s, coal surpassed timber; in the 1950s, oil surpassed coal. ‘Once we started using oil seriously,’ Tillerson notes, ‘it
still took 75 years to replace half of coal’s portion’ of the energy mix. What about the ‘peak oil’ theory--that we have passed
the point of maximum production? ‘We are,’ he says, ‘very good at [predicting] demand’ but regarding supply ‘we have blown
it every time.’ He estimates that the world has used ‘probably well less than half’ the re-coverable oil. In fact, he says, ‘we’ll
probably never exhaust the world’s supply’ of oil because recovering the last, say, 10 percent would be so costly that alternative
energy forms would make economic sense.” [Newsweek, 10/18/10]
Said Concerns Over A Global Energy Supply Crunch Were Exaggerated
Rex Tillerson Told Saudi Arabia’s Energy Minister That Fears Of A Global Energy Supply Crunch Were
Exaggerated. According to the Independent, “Exxon Mobil's boss Rex Tillerson told Saudi Arabia's energy minister on
Wednesday that fears of a new global oil supply crunch were exaggerated as the US oil industry was adapting to the low price
shock and was set to resume growth. The remarks by Tillerson, who is due to retire before March next year, about the
resilience of the US oil industry come as the Saudis have effectively abandoned their strategy to drive higher cost producers
out of the market by ramping up cheap supplies from their own fields.” [Independent, 10/21/16]
DEPENDENCE ON FOREIGN OIL
Tillerson Supported A Free Trade Global Oil Policy
Exxon’s Preferred Foreign And Energy Policy Would Accept “The Interconnectedness Of Global Oil Markets” And
Reject Fantasies Of Independence, And Recognize The Centrality Of Oil And Gas To The Energy Economy For
Decades. According to Private Empire: ExxonMobil and American Power, “To Tillerson and other ExxonMobil executives, Bush’s
speech signaled how flawed and politicized American energy policy had become. If Tillerson and his Management Committee
could write their own foreign and energy policy for the United States, it would involve, first, an acceptance of the
interconnectedness of global oil markets-and an end to fantasies about national ‘independence’ from those markets; and
second, a recognition that carbon-based fuels would be central to the energy economy for decades, even if a significant tax on
carbon was imposed eventually to address the risks of global warming. From those premises, ExxonMobil’s executives would
construct a deliberate, country-by-country strategy to maximize oil and gas supply through free-market competition and to
enforce the sanctity of commercial contracts to support that effort.” [Private Empire: ExxonMobil and American Power, pg.
440-441, 2012]
2007: Rex Tillerson: “The Global Free Market For Energy Provides The Most Effective Means Of Achieving U.S.
Energy Security.” According to The Dallas Morning News, “The U.S. needs to promote better access to oil and gas from
around the globe instead of trying to achieve energy independence by looking at homegrown alternatives to petroleum, Exxon
Mobil Corp.’s top executive said Friday. ‘The global free market for energy provides the most effective means of achieving
U.S. energy security,’ Rex Tillerson, chairman, president and chief executive of the Irving-based energy giant, said in a speech
at the Council on Foreign Relations in New York.” [The Dallas Morning News, 3/10/07]
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Rex Tillerson: “The Global Free Market For Energy Provides The Most Effective Means Of Achieving U.S. Energy
Security.” According to Private Empire: ExxonMobil and American Power, ExxonMobil ran its own war game scenarios about oil
supply disruptions. The company’s political risk analysts asked themselves what would happen in the most extreme case
imaginable-for example, if Iran’s 2.3 million barrels per day of oil exports were removed from world markets because of a war,
while turmoil in Venezuela simultaneously removed another million barrels per day. The shock of losing 3.3 million barrels a
day of exports would certainly create price spikes, and soaring oil prices could produce economic turmoil in the United States
and Europe. Physical delivery of oil, however, did not look like a catastrophic problem, the planners concluded, at least not in
a crisis that lasted less than six months. The strategic petroleum reserve would help cushion any disruptions. After a certain
number of months, if the reserve ran low, governments might be forced to ration. But the extremity and unlikelihood of the
imagined events needed to produce such a physical supply problem suggested to ExxonMobil’ s risk analysts that there was ‘an
element of surge capacity in the global system,’ as the corporation’s Rex Tillerson put it. The company’s war gaming implied
that the global oil markets had become more resilient and flexible than some analysts assumed. At the same time, the threat of
disruption to physical supply from rogue states ‘is not very well understood, in terms of what would really happen,’ Tillerson
believed.26 ‘The central reality is this: The global free market for energy provides the most effective means of achieving U.S.
energy security,’ Tillerson said.” [Private Empire: ExxonMobil and American Power, pg. 245-246, 2012]
Tillerson Believed American Dependence On Foreign Oil Was A “Manifestation Of American Freedom”
Tillerson Viewed America’s Excessive Oil Consumption As “Simply Another Manifestation Of American Freedom.”
According to Private Empire: ExxonMobil and American Power, “Americans in their S.U.V.s and six-cylinder sedans consumed
much more gasoline than any other people on earth. This relative overconsumption was, for many conservatives, including
ExxonMobil’s Lee Raymond and Rex Tillerson, simply another manifestation of American freedom. A European or Asian
authoritarian government might have attacked the problem of overconsumption of gasoline by taxing, planning, regulating, or
otherwise mandating change. Yet Bush and Republican leaders in Congress made no serious effort to require Americans to
drive more fuel­ efficient cars.” [Private Empire: ExxonMobil and American Power, pg. 437, 2012]
2006: Called George W. Bush’s Remarks about America’s “Addition” To Oil “An Unfortunate Choice Of
Words”
Rex Tillesron: To Say The U.S. Was Addicted To Oil Was “‘An Unfortunate Choice Of Words, Quite Frankly,’ […]
‘To Say That You’re Addicted To Oil And Natural Gas Seems To Me To Say You’re Addicted To Economic
Growth.’” According to Private Empire: ExxonMobil and American Power, “ExxonMobil’s executives regarded the president’s
romanticism about energy ‘independence’ and alternative technologies as misguided. Describing the United States as addicted
to oil was ‘an unfortunate choice of words, quite frankly,’ Tillerson said. ‘To say that you’re addicted to oil and natural gas
seems to me to say you’re addicted to economic growth.’3 ExxonMobil executives privately traded theories of psychological
analysis about Bush-perhaps the president felt compelled to distance himself from his family’s history in the oil business or he
feared his legacy as president would be ‘oiled’ if he did not forcefully endorse alternative energy investments.” [Private Empire:
ExxonMobil and American Power, pg. 437, 2012]
2006: Rex Tillerson Called President George W. Bush’s Reference To America’s “Addition To Oil” An “Unfortunate
Choice Of Words.” According to the New York Times, “In contrast to rivals at BP and Royal Dutch Shell, which plan to
invest billions of dollars in the next decade to develop renewable energy sources like wind and solar power, Mr. Tillerson sees
Exxon's future as still firmly tied to oil and natural gas. The answer to today's high prices? ‘More supplies.’ President Bush's
reference to America's ‘addiction to oil’? ‘An unfortunate choice of words.’ Exxon's role in society? ‘A good business, and
what we do brings good things to people.’ ‘To say suddenly that there is something wrong about that,’ he said, ‘I can't connect
with that.’” [New York Times, 3/30/06]
Tillerson Believed President Bush’s Push For Energy Independence Was “Misguided”
Tillerson Sided With Saudi Officials And Diplomats Insulted By Bush’s Rhetoric And Argued That Pursuing
Energy Independence Was “Not Attainable” And “Misguided.” According to Private Empire: ExxonMobil and American
Power, “After the speech was delivered, Saudi officials and diplomats from other oil producers aligned with the United States,
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who felt they had been insulted, protested formally to the White House. ‘It upset the Saudis,’ the senior official recalled.
‘Demarches followed that speech.’4 In Irving, Rex Tillerson sided with the Saudis. He believed, as did ExxonMobil’s
Management Committee, that ‘energy independence is not attainable, not any time in the foreseeable future,’ and that its
pursuit was not desirable because it would set the United States on ‘misguided courses’ that might raise the cost of energy in
the American economy, destroy jobs, and disrupt trade alliances around the world.5 As for Middle Eastern oil, in particular, it
represented less than a quarter of American oil imports, and the percentage seemed likely to decline in the future, as African,
Canadian, and other sources of supply grew. Most Middle Eastern oil went to Asia, and more would head east in the future.”
[Private Empire: ExxonMobil and American Power, pg. 439, 2012]
2007: Rex Tillerson Rebuffed Concerns About America’s Reliance On Foreign Oil, Explaining, As Long As Trade
Lines Are Open, The Global Energy Market Works “Very Elegantly.” According to The Dallas Morning News, “Exxon
Mobil, the world’s largest publicly traded oil company, predicts that global energy demand will increase 50 percent between
2005 and 2030. Concern that reliance on foreign oil raises costs for U.S. consumers is unfounded, Mr. Tillerson said, because
as long as trade lines are open, the market works ‘very elegantly’ by attracting supplies to where they’re needed to lower costs.
Eight of the world’s 10 largest economies are net importers of oil, he said. ‘It should not be an area of concern,’ he said. The
Bush administration and Congress are putting increasing attention on alternatives to fossil fuels, from wind to ethanol, in part
to mitigate the influence of unfriendly oil-exporting nations on U.S. foreign policy.” [The Dallas Morning News, 3/10/07]
Claimed American Energy Independence Was “Impossible”
2007: Rex Tillerson Said It Is “Impossible” For Countries Like The U.S. To Achieve Energy Independence,
Explaining That Their Economies Need Diverse Sources Of Oil And Gas. According to The Globe and Mail, “In the
round-table, Mr. Tillerson said that it is ‘impossible’ for countries such as the U.S. to secure energy independence, stating that
access for countries to diverse sources of oil and gas were essential in order to minimize supply disruptions from events such
as hurricane Katrina. A cornerstone of U.S. President George W. Bush’s energy policy has been to develop domestic sources
of energy in order to reduce foreign dependence. ‘History shows this approach is often counterproductive, leads to
inefficiencies, higher prices, supply shortages and at times even trade wars,’ he said. Mr. Tillerson said that increased energy
efficiency was crucial if rising global energy demand, particularly from developing countries such as China, was to be met. He
added that that rising energy prices would ultimately force consumers to make more energy efficient lifestyle choices.” [The
Globe and Mail, 9/8/07]
2006: Rex Tillerson Rejected As Flawed Policy The Idea That US Can Really Become Energy Independent.
According to the Wall Street Journal, “Jeffrey Ball The Week Ahead column predicts petroleum executives will argue that
government needs to help them find new supplies of oil and natural gas; Exxon Mobil Corp Chmn and CEO Rex Tillerson
rejects as flawed policy idea that US can really become energy independent; says government should open additional areas to
exploration and drilling if it is serious about boosting domestically-produced oil supply.” [Wall Street Journal, 3/11/06]
Considered U.S. Energy Independence Push Unrealistic
Rex Tillerson: “I Think Energy Independence Is Not Realistic For The United States Or Almost Any Other
Country.” According to ABC News, “CHARLES GIBSON (ABC NEWS) (Off-camera) Let me talk politics for you for a
little bit because energy is very much in the political sphere right now. We keep hearing from politicians that we need to get
energy independence. Is that a pipe dream? REX TILLERSON (CHAIRMAN & CEO Well. I think energy independence is
not realistic for the United States or almost any other country. We are going to continue to require imports of our energy for
as long as anyone can foresee, certainly well into the middle of this century.” [ABC News, 8/13/08]
Tillerson Claimed That American Energy Independence Would Lead To A Trade War
2007: Rex Tillerson On Efforts To Achieve Energy Independence: “History Shows This Approach Is Often
Counterproductive, Leads To Inefficiencies, Higher Prices, Supply Shortages And At Times Even Trade Wars.”
According to The Globe and Mail, “In the round-table, Mr. Tillerson said that it is ‘impossible’ for countries such as the U.S.
to secure energy independence, stating that access for countries to diverse sources of oil and gas were essential in order to
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minimize supply disruptions from events such as hurricane Katrina. A cornerstone of U.S. President George W. Bush’s energy
policy has been to develop domestic sources of energy in order to reduce foreign dependence. ‘History shows this approach is
often counterproductive, leads to inefficiencies, higher prices, supply shortages and at times even trade wars,’ he said. Mr.
Tillerson said that increased energy efficiency was crucial if rising global energy demand, particularly from developing
countries such as China, was to be met. He added that that rising energy prices would ultimately force consumers to make
more energy efficient lifestyle choices.” [The Globe and Mail, 9/8/07]
2007: Rex Tillerson Warned That Policies Of Energy Independence Enacted By Large Oil Consuming Nations
Such As The U.S. Could Have A “Chilling Effect” On The International Energy Trade. According to The Times,
“Speaking at the World Energy Congress in Rome, Mr Tillerson criticised Wash-ington for keeping its huge unexploited oil
and gas reserves off limits to development. The United States imports 15 million barrels of oil per day, about 30 per cent of its
daily energy demand, he said. ‘If the US is serious about energy policy, it has to make positive decisions,’ he added. Mr
Tillerson described the politi-cal climate for oil companies as one of retrenchment on the part of some governments, with, on
one hand, calls for energy independence and, on the other, efforts to build energy superpowers. He said that energy
independence was unrealistic for big consuming nations, such as America, and could have a ‘chilling effect’ on its energy
trading partners, increasing uncertainty and hindering investment in new resources.” [“Exxon's chief attacks 'resource
nationalism,” The Times, 11/13/07]
Tillerson Claimed Congressional Proposal To Achieve Energy Independence Hurt Investment In Oil And
Gas
2007: Rex Tillerson Criticized Energy Bills Under Consideration By Congress Because They Created Obstacles To
Investing In Oil And Gas And Misguidedly Pursed A Policy Of Energy Independence. According to Platts Oilgram
News, “Pausing outside an API board meeting room, ExxonMobil CEO Rex Tillerson criticized the current parade of energy
bills under consideration by Congress, saying ‘They just have a number of flaws.’ […] The ExxonMobil chief commented on
the US energy legislation after a reporter asked him about a reported recent meeting he had with US House Speaker Nancy
Pelosi to discuss the elimination of $15 billion in tax breaks to the oil industry. But neither Tillerson nor an ExxonMobil
spokesman would confirm that he actually met with Pelosi. Tillerson said the legislation raises obstacles in the way of
investments for oil and gas interests. He said the bills are misguided in pursuing energy independence, which he noted is
different from energy security.” [Platts Oilgram News, 10/16/07]
Claimed Energy Independence Would Produce No Impact On U.S. –Middle East Relations
Rex Tillerson Believed The U.S. National Security Relationship In The Middle East Would Not Fundamentally
Change If The U.S. Became Independent Of The Need For Middle Eastern Oil. According to the Council on Foreign
Relations, MR. MURRAY: So oil doesn't drive those relationships and won't even if we could wean ourselves from all their
oil. MR. TILLERSON: I have never felt oil drove the -- were the only underpinnings in those relationships. It is important
not just because we get our oil, because if you really look at the amount of oil we physically get, it's important, but we could
replace it with a little higher cost. It's more a question of the importance of that region to global economic stability. And
we're going to still be interested in that. So if you have a supply -- if we're no longer getting any oil from the Middle East
because we're secure here, a disruption of oil supplies from that region will have devastating impacts on global economies.
Now is that important to us? Prob-ably so. So I'm not sure it changes the relationship dramatically. I think it may redefine the
priorities around the relationship, but I'm not sure it changes it dramatically.” [Council on Foreign Relations, 6/27/12]
But, Tillerson Advocated For “Energy Independence” When Lobbying To Reduce Regulations And Open
Up Land To Domestic Oil Drilling
Private Empire: Tillerson Pandered To A Nationalist Desire For “Energy Independence” In An Effort To Reduce
Regulation And Open Up More Land To Domestic Oil Drilling. According to Private Empire: ExxonMobil and American
Power, “Washington needed ‘long-range thinking’; rising global demand for oil and gas, through 2030, was inevitable; America,
therefore, needed to develop ‘all our energy resources’; and it was particularly urgent to open up offshore and other domestic
territory to drilling. Normally, the Exxon­ Mobil chairman resisted arguments that pandered to the American yearning for
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‘energy independence,’ since he regarded the very idea as misguided. Yet if measured appeals to American nationalism were
necessary to win approval for domestic oil drilling, he was willing to make them: ‘There is enough oil and natural gas offshore
and in non-wilderness and non-park lands to fuel fifty million cars and heat nearly one hundred million homes for the next
twenty-five years,’ he declared.” [Private Empire: ExxonMobil and American Power, pg. 534-535, 2012]
DEVELOPMENT
2005: Exxon Shifted Focus To Production In Russia, Caspian Basin And Africa
2005: Rex Tillerson Said That Oil And Gas “Production Is Shifting From Mature Areas In North America And
Europe To New Supply Sources In Russia, The Caspian Basin And…Africa.” According to the Dallas Morning News,
“Exxon Mobil earlier this month laid out the challenges the company faces in its annual long-term energy outlook. The
company predicted global demand for energy will rise 50 percent by 2030, and oil will remain the dominant fuel. Extracting
that oil will require expensive technological improvements and access to politically risky areas of the world. ‘The challenge
comes at a time when the energy map is in flux,’ Mr. Tillerson said in a September speech in Johannesburg, South Africa.
‘Although the Middle East is and will long remain the epicenter, other production is shifting from mature areas in North
America and Europe to new supply sources in Russia, the Caspian Basin and here in Africa.’” [Dallas Morning News,
12/25/05]
Mnuchin Defended Exxon’s Decision To Invest More Heavily In Oil Than Natural Gas
Rex Tillerson On Investing More In Oil Than Natural Gas: “At The End Of The Day, What You Put In Your Bank
Account Are Dollars. You Don’t Put Oil Or Gas Molecules In The Bank Account.” According to The Dallas Morning
News, “Eighty percent of Exxon’s new production over the next five years is expected to be oil from Canada, Iraq,
Kazakhstan and Russia. The Irving-based company says more oil will be needed in Asia, where consumption is growing as
living standards rise and more cars hit the road. Exxon’s profit, which totaled $30.5 billion last year, increases when oil prices
skyrocket, as they’ve done in recent weeks. Even so, Exxon isn’t second-guessing its natural gas strategy to chase more oil,
chief executive Rex Tillerson told the company’s annual gathering of analysts at the New York Stock Exchange. ‘There is no
bias for us one way or the other,’ Tillerson told reporters after the meeting. ‘At the end of the day, what you put in your bank
account are dollars. You don’t put oil or gas molecules in the bank account.’ So far, Exxon doesn’t think U.S. consumers are
curbing their appetite for oil because of higher prices, Till-erson said. High prices last depressed demand for gasoline in 2008,
when prices eclipsed $4 per gallon.” [The Dallas Morning News, 3/10/11]
ANTI-TRUST
2006: Tillerson Testified Before Congress On The Issue Of Price Collusion
March 2006: Rex Tillerson Testified Before Congress On The Issue Of Price Collusion In The Oil Industry, Stated
That He Intended To “Advance People’s Understanding Of The Industry.” According to CNBC/Dow Jones Business,
“BARTIROMO: You and other executives are testifying next week in front of Congress on the issue of price collusion. How
do you feel about being called? What do you expect to say? TILLERSON: Well, I hope what we can do in the hearings next
week is just advance people`s understanding of this industry. I think one of the big challenges the industry faces today, and it`s
faced for probably the whole existence, is the absence of understanding of, first, the enormity of the oil petroleum industry. It
affects everyone`s life in so many ways and I think there is a real lack of understanding of how huge it is, the timelines
involved with this industry, when you want -- when you need to take steps to respond to supply situations. They take a long
time to play out. Our decisions take decades to play out and that`s something that`s not easy for people to get their arms
around. I think to the extent that we can have a meaningful discussion to help advance the people`s understanding and
knowledge of how energy is supplied to them, how long term supplies are developed, and how those are made reliable and
affordable, if we can accomplish that, maybe we take a step forward in helping everyone understand it.” [CNBC/Dow Jones
Business Video, 3/8/06]
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Tillerson Denied Accusations That Large Oil Companies Colluded On Price Gouging
March, 2006: Rex Tillerson Testified Before Congress That Recent Mergers And Acquisition In The Oil And Gas
Industry Had Not Lead To Higher Gas Prices. According to the New York Times, “The nation's top oil executives were
called before Congress again yesterday to defend their industry's recent mergers and record profits, in the face of public
outrage over high oil and gasoline prices. […] ‘With respect to the committee's specific question -- whether mergers and
acquisitions in our industry have contributed to higher prices at the pump -- my answer is no,’ Rex W. Tillerson, Exxon
Mobil's chair-man and chief executive since January, said in response to Senator Specter. ‘We need U.S. energy companies
that have the scale and financial strength to make the investments, undertake the risks and develop the new technologies
necessary to provide Americans with greater energy access and greater energy security,’ he said.” [New York Times, 3/15/06]
Rex Tillerson Adamantly Denied Any Price Gouging Or Manipulation By Large Oil Companies. According to NBC’s
Today Show, “Mr. TILLERSON: Well, obviously, the truth is that we do not get together and manipulate prices. That would
be illegal. There have been any number of investigations into our industry over the last 20 to 30 years. None of those have
ever found any evidence of price collusion. In terms of our influence on the market, even after the merger of ExxonMobil, we
have a little over 13,000 branded service stations around the country. That represents only 8 percent of the market and our
market share of gasoline sales is actually down from where it was in pre-merger.” [NBC’s Today Show, 5/3/06]
Tillerson Defended Oil Company Mergers, Denied It Impacted Consumer Prices
Rex Tillerson Denied That Mergers Of Large Oil Companies, Limiting Competition, Had Anything To Do With On
Universally Higher Prices For Consumers. According to NBC’s Today Show, “LAUER: But if you--you look back in 1999
I think there was something like 11 really large oil companies. We've had six mergers. There are now five or six, depending on
what your definition of a major oil company is. So why shouldn't a consumer say that this decrease in competition has helped
fuel higher prices? Mr. TILLERSON: Well, again, it's--the competition at the pump is actually more intense. There have been
more entry of new participants into the--the retail fuels business. Grocers, retailers, hyper markets, a lot of petropreneurs, we
call them, like Race Track, Quick Trip, Wawa. It's a very competitive business at the pump. The mergers were really driven by-
-by issues globally that were unrelated to the retail side of the business. LAUER: So it hasn't affected the consumer, in your
opinion. Mr. TILLERSON: Not in my opinion.” [NBC’s Today Show, 5/3/06]
2006: Tillerson Claimed That U.S. Energy Mergers Provided Americans With Greater Energy Security.
March, 2006: Rex Tillerson Said Mergers Gave U.S. Energy Companies The “Scale And Financial Strength” To
“Americans With Greater Energy Access And Greater Energy Security.” According to the New York Times, “The
nation's top oil executives were called before Congress again yesterday to defend their industry's recent mergers and record
profits, in the face of public outrage over high oil and gasoline prices. […] ‘With respect to the committee's specific question -
- whether mergers and acquisitions in our industry have contributed to higher prices at the pump -- my answer is no,’ Rex W.
Tillerson, Exxon Mobil's chair-man and chief executive since January, said in response to Senator Specter. ‘We need U.S.
energy companies that have the scale and financial strength to make the investments, undertake the risks and develop the new
technologies necessary to provide Americans with greater energy access and greater energy security,’ he said.” [New York
Times, 3/15/06]
Tillerson Claimed That Strengthened Anti-Trust Laws Would Hinder Gasoline Supply Reliability
March, 2006: Rex Tillerson Told The Senate Judiciary Committee That Tightening Antitrust Laws Would Make It
More Difficult For His Company To Be A Reliable National Supplier Of Gasoline. According to the Globe and Mail
(Canada), “A proposal to place further restrictions on oil company mergers and marketing tactics appears to be gaining
support among U.S. Senate Judiciary Committee members who see the approach as a way to respond to consumer complaints
about soaring prices for gasoline and natural gas. But the industry doesn't see it that way, and the effort could face significant
hurdles. The chief executive officers of six of the nation's largest energy companies told the committee yesterday that they
need the bigger size and financial power created by recent mergers to find new oil and natural gas and to compete for supplies
in increasingly tight international markets. ‘The energy industry follows what I call the law of large numbers,’ said Rex
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Tillerson, chairman and chief executive officer of ExxonMobil Corp. He said that tightening antitrust laws would make it
more difficult for his company to be a reliable national supplier of gasoline.” [Globe and Mail (Canada), 3/15/06]
OIL PRICES
Tillerson Claimed That High Crude Oil Prices Undermined Economic Growth
2006: Rex Tillerson Said That Current High Crude Oil Prices Are Undermining Economic Growth In Countries
Around The World. According to the Globe and Mail, “Exxon Mobil Corp. chairman and chief executive officer Rex
Tillerson said that current high crude oil prices are undermining economic growth in countries around the world. ‘Prices at
these levels are not healthy for economies anywhere,’ he said. Mr. Tillerson was speaking to reporters at an offshore oil and
gas conference in Stavanger, Norway. Mr. Tillerson said that Exxon didn't have any oil production shut in Nigeria, where
rebels have attacked a series of pipelines over the past nine months. ‘All our operations there are operating normally,’ he said.
Mr. Tillerson added that he believed Exxon facilities had been immune from attacks because most of its operations aren't in
the Niger Delta, where most of the attacks have occurred.” [Globe and Mail (Canada), 8/23/06]
2006: Tillerson Claimed That U.S. Energy Mergers Provided Americans With Greater Energy Security.
March, 2006: Rex Tillerson Said Mergers Gave U.S. Energy Companies The “Scale And Financial Strength” To
“Americans With Greater Energy Access And Greater Energy Security.” According to the New York Times, “The
nation's top oil executives were called before Congress again yesterday to defend their industry's recent mergers and record
profits, in the face of public outrage over high oil and gasoline prices. […] ‘With respect to the committee's specific question -
- whether mergers and acquisitions in our industry have contributed to higher prices at the pump -- my answer is no,’ Rex W.
Tillerson, Exxon Mobil's chair-man and chief executive since January, said in response to Senator Specter. ‘We need U.S.
energy companies that have the scale and financial strength to make the investments, undertake the risks and develop the new
technologies necessary to provide Americans with greater energy access and greater energy security,’ he said.” [New York
Times, 3/15/06]
Tillerson Claimed That Strengthened Anti-Trust Laws Would Hinder Gasoline Supply Reliability
March, 2006: Rex Tillerson Told The Senate Judiciary Committee That Tightening Antitrust Laws Would Make It
More Difficult For His Company To Be A Reliable National Supplier Of Gasoline. According to the Globe and Mail
(Canada), “A proposal to place further restrictions on oil company mergers and marketing tactics appears to be gaining
support among U.S. Senate Judiciary Committee members who see the approach as a way to respond to consumer complaints
about soaring prices for gasoline and natural gas. But the industry doesn't see it that way, and the effort could face significant
hurdles. The chief executive officers of six of the nation's largest energy companies told the committee yesterday that they
need the bigger size and financial power created by recent mergers to find new oil and natural gas and to compete for supplies
in increasingly tight international markets. ‘The energy industry follows what I call the law of large numbers,’ said Rex
Tillerson, chairman and chief executive officer of ExxonMobil Corp. He said that tightening antitrust laws would make it
more difficult for his company to be a reliable national supplier of gasoline.” [Globe and Mail (Canada), 3/15/06]
During Congressional Hearings On Price Gouging, Lawyer David Boies Alleged ExxonMobil And Other
Oil Companies Refused To Build Pipeline Infrastructure In Order To Control The Market And Maximize
Profits
Tillerson Denied The Accusations
March, 2006: Rex Tillerson Denied Allegations Before The Senate Judiciary Committee That ExxonMobil And
Others Rejected Proposals To Build A Pipeline To The Lower 48 States From Alaska To Control The Market And
Maximize Profits. According to Oil and Gas Journal, “Another lawyer, David Boies, chairman of Boies, Schiller & Flexner
LLP in Armonk, NY, charged that Alaska North Slope producers rejected proposals to build a natural gas pipeline to the
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Lower 48 states to control the market and maximize profits. He said many proposals have been made to bring the gas to
market, including one by a company he represents. ‘Every single one of them was refused. The reason is that this allows the
oil companies to keep control. They know that by refusing, they prevent the development of a pipeline to bring gas to the
Lower 48 states,’ Boies said. Asked about this later in the hearing, ExxonMobil Corp. Chief Executive Officer Rex W.
Tillerson responded, ‘It's regrettable that Mr. Boies decided to try his case in front of this committee. We believe his
allegations are untrue and intend to defend it in court.’ Regarding the pipeline project proposals that Boies mentioned,
Tillerson said later, ‘Those proposals had a number of flaws in them that, in our view, made them nonfinanceable.’” [Oil and
Gas Journal, 3/20/06]
May 2006: Tillerson Met With Speaker Hastert To Oppose Legislation That Outlawed Price Gouging
May, 2006: Rex Tillerson Met With Speaker Dennis Hastert Amid Pressure To Show Congress Was Taking
Escalating Gasoline Prices Seriously. “Even as they distanced themselves from the rebate proposal, Republicans sought to
show they were taking escalating gasoline prices seriously. Speaker J. Dennis Hastert met privately with Rex W. Tillerson,
chairman of ExxonMobil, and House Republicans planned to consider bills on Wednesday that outlaw price gouging and
encourage new refinery capacity.” [New York Times, 5/3/06]
Aide Described Rex Tillerson’s Meeting With Speaker Dennis Hastert As “Not A Friendly Meeting.” According
to the LA Times, “With the reelection season heating up, anxiety over energy prices is reaching a fever pitch on Capitol
Hill. House Speaker J. Dennis Hastert (R-Ill.) even met with the new chief executive of Exxon Mobil, Rex Tillerson -- an
encounter one aide described as ‘not a friendly meeting.’” [LA Times, 5/3/06]
Senior Aide Said That Speaker Dennis Hastert Pressed Rex Tillerson About The Supply Of Domestic Oil.
According to the LA Times, “A senior Republican aide said Hastert made a similar point in his meeting with Exxon
Mobil's Tillerson. The speaker complained that domestic supplies were too tight, the aide said, and Tillerson responded
that global supplies were just fine.” [LA Times, 5/3/06]
2006: Rex Tillerson Was Among A Number Of Big Oil Executives Who Argued That Energy Prices Were High
Because Demand For Oil Was Outpacing Supply In Order To Stave-Off New Laws That Would Jeopardize
Profit. According to the Dallas Morning News, “John Hofmeister, president of Shell Oil Co., kicked off a 50-city public
relations tour Friday in Dallas, the latest attempt by a big oil executive to explain that consumers aren't getting ripped off.
The head of Royal Dutch Shell PLC's U.S. operations outlined a plan to ensure that the U.S. has plenty of affordable
energy: Diversify U.S. fuel sources, become more energy-efficient, and allow oil companies to drill in regions of the
country that are now off-limits. ‘I firmly believe that we can secure energy supply in the U.S. and improve the prices that
we pay for it,’ Mr. Hofmeister said at a luncheon given by the Dallas Friday Club. ‘The optimism we feel should be felt by
the American people.’ A number of big oil executives, including Mr. Hofmeister and Exxon Mobil Corp.'s Rex Tillerson,
are lobbying the public these days. They want people to understand that energy prices are high because demand for oil and
gas is rising faster than supply. If they can't convince average Americans that is true, the industry risks getting slapped with
new laws that jeopardize oil company growth and profit. So oil executives have been taking out advertisements, holding
news conferences, and granting journalists interviews, in order to defend their record profits and high gasoline prices.”
[Dallas Morning News, 6/17/06]
OIL PRICES
2006: Claimed High Energy Prices Were The Result Of Speculation
2006: Rex Tillerson Said The Current High Oil Prices Were “Not Sustainable” And Attributed Them To A
“Disconnect Between Fundamental Supply And Demand, And Prices.” According to the Dallas Morning News, “Mr.
Tillerson said his plans for the company don't depend on high oil prices - which he said he can't ex-plain. ‘When you look at
prices where they are today, my view is, it's not sustainable. I can't explain to you why prices are at $60 a barrel," he said.
‘Somewhere there's been a disconnect between fundamental supply and demand, and prices.’” [Dallas Morning News,
3/9/06]
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2006: Rex Tillerson Claimed That High Energy Prices Were The Result Of Speculation About Possible Future
Supply Shocks, Rather Than Any Actual Reserve Shortfall. According to the Economist, “Exxon pursues only projects
that will turn a profit even in the leanest years, Mr Tillerson explains; so in the fattest ones, the returns are eye-catching. True
to that policy, he will not be seduced into making expensive investments on the assumption that the oil price will remain high.
Indeed, he assumes the reverse: that it will inevitably fall. Traders, he argues, are pushing the price up on speculation about
possible future supply shocks, rather than any actual shortfall. Exxon, after all, refines even more oil than it pumps, yet has
never had any trouble buying supplies to feed its refineries.” [Economist, 4/29/06]
December 2006: Tillerson Claimed Increasing Domestic Oil Production Would Lower Energy Costs
2006: Rex Tillerson Said The Best Hope For Lowering Gasoline Prices Is For Federal Officials To Allow More Oil
Exploration Off US Coasts And Under Federal Lands And National Parks. According to the Boston Globe, “Exxon
Mobil Corp.'s chief executive, making a Boston appearance yesterday, said the best hope for lowering gasoline prices is for
federal officials to allow more oil exploration off US coasts and under federal lands and national parks. Rex W. Tillerson,
speaking at the Boston College Chief Executives Club at the Boston Harbor Hotel, said: ‘It really is supply and demand driven.
If you want to bring the price down, you've got to increase supply, and access to our own resources would provide lower-cost
supply’ that could reduce gasoline prices. Currently, Tillerson said, government policies ban exploration of areas of the United
States containing 31 billion barrels of oil and 105 trillion cubic feet of gas. Companies like Exxon could tap them ‘safely and
with a minimal environmental imprint,’ Tillerson said, but ‘what we lack is permission to access them.’ ‘Ours is the only
country in the world with major oil and natural gas resources that, as a matter of policy, denies its own citizens the economic
benefits of developing and utilizing those resources that belong to its citizens,’ Tillerson said.” [Boston Globe, 12/1/06]
2006: Rex Tillerson: “Ours Is The Only Country In The World With Major Oil And Natural Gas Resources That,
As A Matter Of Policy, Denies Its Own Citizens The Economic Benefits Of Developing And Utilizing Those
Resources That Belong To Its Citizens.” According to the Boston Globe, “Rex W. Tillerson, speaking at the Boston
College Chief Executives Club at the Boston Harbor Hotel, said: ‘It really is supply and demand driven. If you want to
bring the price down, you've got to increase supply, and access to our own resources would provide lower-cost supply’
that could reduce gasoline prices. Currently, Tillerson said, government policies ban exploration of areas of the United
States containing 31 billion barrels of oil and 105 trillion cubic feet of gas. Companies like Exxon could tap them ‘safely
and with a minimal environmental imprint,’ Tillerson said, but ‘what we lack is permission to access them.’ ‘Ours is the
only country in the world with major oil and natural gas resources that, as a matter of policy, denies its own citizens the
economic benefits of developing and utilizing those resources that belong to its citizens,’ Tillerson said.” [Boston Globe,
12/1/06]
2007: Tillerson Blamed Rising Energy Prices On Increased Demand For Oil
2007: Rex Tillerson Said Consumers, Not Producers, Were To Blame For Rising Energy Prices. “According to The
Washington Post, “Rex W. Tillerson, chief executive of Exxon Mobil, blames rising prices on consumers, who are using about
1.5 percent more gasoline this year than last despite the high prices. ‘The industry is producing record volumes of gasoline
today, but the consumer is burning record volumes of gasoline today,’ he said at Exxon’s recent annual meeting.” [The
Washington Post, 6/22/07]
2006: Rex Tillerson Stated He Agreed With The Assessment That Supply And Demand Never Justified Oil Prices
To Be Above $30 Per Barrel. According to Nightly Business Report, “REX TILLERSON, CHAIRMAN & CEO,
EXXONMOBIL: We look at the long-term fundamentals of supply and demand, recognize that there are going to be a lot of
ups and downs in that price, often times due to events that aren`t related to supply and demand. I think that`s the situation we
find ourselves in today. GHARIB: Mr. Tillerson, your predecessor, Lee Raymond (ph) told me many times that he did not
believe that it justified for oil prices to be above $30 a barrel. Do you share his view? TILLERSON: I do agree with that
observation. I think this notion that some have put forward that the days of easy oil are over, I don`t agree with it. I`ve been
in this business for more than 30 years now. I don`t ever remember any easy days for oil and that`s because we`ve always been
on the edge of the technology ad-vances, finding the way to access the next new resource opportunity, deeper water, arctic
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conditions, harsher environments, new cultures, whatever the challenge may be. There`s never been anything easy about it,
and that`s not any different than we find ourselves today.” [Nightly Business Report, 3/8/06]
2008: Tillerson Blamed Rising Oil Costs On Regulation
2008: Rex Tillerson Laid Blame For Oil Prices On Political Regulation Inhibiting Access To Certain Areas The
Might Contain Oil And Gas. According to The New York Times, “Q.Globally, the picture for oil supplies looks pretty
bleak. Where are new supplies going to come from in the next five years? A. There is an access issue, in this country, and in
many countries around the world. The problem with the supply side of the equation is a problem of accessing the resources in
the ground so they can be explored and developed. That’s a political question where governments have made choices. This is
something where the United States has to look at the mirror first.” [The New York Times, 7/19/08]
STATE-RUN OIL COMPANIES
Tillerson Predicted State-Run Oil Companies Would Increasingly Turn To Private Entities To Provide
The Technological Expertise To Develop Oil And Gas Resources
2007: Rex Tillerson Said, Unlike Exxonmobil, Foreign State-Run Oil Companies Did Not Have The Expertise And
Technology To Fully Develop Oil And Gas Resources In Their Respective Countries. According to the Financial Post,
“Mr. Tillerson, who agrees there’s no shortage of resource around the world, said restricting access to private oil companies
has ignored the progress made by industry to develop and produce energy under the most challenging conditions. Already,
more than 75% of the world’s oil resources are controlled by national oil companies, said Mr. Tillerson, noting that Exxon
Mobil, the industry’s largest publicly traded corporation, accounts for only 3% of the pie. While their view of the challenges is
similar, the approach each one of these titans is contemplating to chart a way forward is slightly different. Mr. Tillerson sees
the answer in technology. He believes that governments that are taking control of resources will eventually turn once again for
help from companies like ExxonMobil because they don’t have the ability to fully take advantage of their resources. ‘As we go
for-ward...national oil companies are going to have to construct a proper joint-venture arrangement so they can have access to
technology,’ he said. ‘We will come in with technology, know-how, project management, and take that resource and make it
(larger). That creates the space for (them) to share that with us, and (they) end up with more. If there is no room to share,
there is no room for us.’” [Financial Post, 9/11/07]
GULF OF MEXICO DRILLING
Opposed Increasing Fees To Drill In Gulf Of Mexico
March, 2006: Rex Tillerson Warned Congress That Attempts To Raise Drilling Fees In The Gulf Of Mexico Would
Reduce Oil And Gas Exploration When Consumers Need Lower Energy Prices. “Rex Tillerson, the chairman of Exxon
Mobil, warned the U.S. Congress on Wednesday that attempts to raise drilling fees in the Gulf of Mexico would reduce
exploration when more oil and gas was needed to lower prices. Lawmakers, including Senator Dianne Feinstein, a California
Democrat, say the royalty payment system amounts to a ‘handout’ to energy companies. Exxon Mobil also said that its
spending on oil and gas drilling, refining and chemicals manufacturing would rise from about $18 billion this year to almost
$20 billion a year between 2007 and 2010.” [International Herald Tribune, 3/9/06]
Paris Climate Accord
Rex Tillerson’s ExxonMobil Supported A Carbon Tax And The Paris Climate Agreement. According to the New York
Times, “Mr. Tillerson assumed the role of chairman and chief executive of Exxon Mobil in January 2006, and during his
tenure the company acknowledged, for the first time, the science underlying climate change. It has said it supports the creation
of a carbon tax, which most Republicans have opposed, and it also supported the Paris climate agreement, a major focus of
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Mr. Kerry's time in office. Mr. Trump has vowed to abandon the climate pact. In May, Mr. Tillerson told shareholders that ‘we
believe that addressing the risk of climate change is a global issue,’ adding that it would require the cooperation of
governments, businesses and individuals.” [New York Times, 12/10/16]
BP Horizon Oil Spill
CRITICIZED BP DECISION TO DRILL ON DEEPWATER HORIZON
2010: Rex Tillerson On The BP Oil Spill: “This Incident Represents A Dramatic Departure From Industry Norms In
Deepwater Drilling […] We Do Not Proceed With Operations If We Cannot Do So Safely.” According to The
Guardian, “ExxonMobil would have been as powerless as BP to stop the Gulf of Mexico gusher, the chief of the world’s
biggest oil company told Congress yesterday in a contentious hearing into the oil spill. […] But the other oil executives were
blocked in their attempts to cast the spill as a rare event directly linked to shoddy safety procedures by BP when it emerged
they had virtually identical spill response plans. No company could have averted a disaster in the case of a blowout like the one
suffered by BP, it turned out. […] Tillerson and others said their companies would have stopped drilling when confronted
with the problems in well control experienced on the Deepwater Horizon. ‘This incident represents a dramatic departure from
industry norms in deepwater drilling,’ he said. ‘We do not proceed with operations if we cannot do so safely.’” [The Guardian,
6/16/10]
Rex Tillerson Acknowledged Exxon And Other Oil Companies Were Not Well-Equipped To Deal With Oil
Spills, But Instead Placed Emphasis On Preventing Them.. According to NPR, “SHOGREN: Exxon's Tillerson
says that his company puts its emphasis on preventing a spill because it's impossible to adequately respond to one once it
happens. Mr. TILLERSON: When these things happen, we are not well-equipped to deal with them.” [NPR, 6/15/10]
BUT OPPOSED A DEEP WATER DRILLING BAN
2010: Rex Tillerson Called The Ban On Deep Water Drilling Implemented In The Aftermath Of The BP Oil Spill
“Unnecessary” And Said That It Should Be “Revisited.” According to USA Today, “Big oil industry executives defended
the safety of offshore drilling in front of Congress on Tuesday and said common industry standards weren’t deployed at the
BP-owned well that’s caused the worst U.S. oil spill in history. […] The spill prompted the U.S. government last month to
put a six-month ban on new deep-water drilling in the Gulf pending investigations into the spill. The moratorium threatens
expansion plans of big oil producers and thousands of Gulf Coast jobs. Tillerson said the ban on new drilling in depths of
water greater than 500 feet was ‘unnecessary’ and should be ‘revisited.’ Chevron, which had plans to drill four new wells in
Gulf deep water this year, has said ‘responsible drilling’ should continue.” [USA Today, 6/16/10]
Wind
Tillerson On Wind Power: “We Sell A Lot Of Lubricant Oil To The Windmill Operators. . . . The More Windmills
Are Built, The More Oil We Sell.” According to Private Empire: ExxonMobil and American Power, “Another asked about solar
and wind power. ‘ExxonMobil is not really against renewables,’ Tillerson replied mirthfully. ‘We sell a lot of lubricant oil to the
windmill operators. . . . The more windmills are built, the more oil we sell.’” [Private Empire: ExxonMobil and American
Power, pg. 599, 2012]
Section Overview:
FOREIGN POLICY AND INTERNATIONAL TRADE
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Tillerson was a vocal supporter of free trade, including the free trade of human talent, and frequently opposed tariffs and
other forms of protectionism. In 2014, Tillerson characterized his views on free trade as a “net-net” positive for all
involved.
Under Tillerson, Exxon did not oppose the Iran Nuclear Deal and indicated that if it fostered the ability for U.S.
companies to invest in Iran, the company would consider it.
Tillerson supported the Trans-Pacific Partnership, calling it in 2013 “one of the most promising developments” for
“international cooperation and energy trade.”
In 2012, Rex Tillerson praised NAFTA for fostering a “close relationship” between Canada, Mexico and the United
States’ economies.
In 2012, Tillerson claimed that he was not enough of an “expert” to determine whether it would be positive or negative
for China or another major nation to take over the U.S.’s security role in the Middle East.
In 2011, under Tillerson, Exxon negotiated separate oil contracts with Iraq’s Kurdish regional government, infuriating the
Maliki government and directly contradicting the U.S. One Iraq policy. In response, the Maliki government threatened to
do “anything it takes to preserve national wealth” and warned the contracts could throw the country into civil war.
Tillerson met with Maliki in 2013, and ultimately, Iraq agreed to allow Exxon to keep its contracts with the Kurdish
regional government.
Foreign Policy, Generally
TILLERSON HELD LIMITED FOREIGN POLICY KNOWLEDGE
2012: Tillerson Did Not Know If It Would Be Good Or Bad If Another Large Nation Took Over The U.S.
Security Role In The Middle East
Rex Tillerson Said He Was “Not Expert” Enough To Determine Whether It Would Be Good Or Bad If China Or
Another Large Nation Stepped In And Took Over The U.S. Security Role In The Middle East. According to the
Council on Foreign Relations, “MR. MURRAY: But I think also people would ask the question, if we halve our reliance on oil
from the Middle East, does that reduce our involvement in the problems of the Middle East? MR. TILLERSON: Well, that --
and that's -- that's a very interesting question, too. If you -- if you said the U.S. never, ever again needed to import a barrel of
crude oil for -- through the Persian Gulf, then it becomes a national security question. It changes our economic
interdependencies with that region because that is really the source of our economic interdependencies, is our energy
dependency. There's not a lot of eco-nomic activity between us -- some. Now it becomes a question of what's our national
security interest in the region, because you have an enormous -- as all of you know, enormous national defense footprint in the
Middle East because of our in-terest in the area. So if then the U.S. said, well, we can now redeploy those defense resources
elsewhere in the world, the question you have to ask is, well, then who steps into that void? And most likely it's going to be a
large consuming country is going to step into that void. If that happens --MR. MURRAY: You mean a China? MR.
TILLERSON: Well, they're a large consuming country. (Laughter.) MR. MURRAY: (Chuckles.) OK. Right. MR.
TILLERSON: So -- well, they step into the void, and given the history of the region and all of the issues and challenges of the
region, and how that has spilled over onto us, the American people, is that a good thing, from a national security standpoint,
that someone else then steps into that void, or is it a bad thing? Well, I'm not expert enough on that one to say, but you have
to anticipate what happens then and what do you -- and when you say we're no longer dependent on them, so it changes our
relationship, well, it may redefine the priorities of the relationship, but does it fundamentally change the relationship and our
interest in the region and our interest in that -- those peoples and their issues?” [Council on Foreign Relations, 6/27/12]
Limited Knowledge Of Political Economies In Poor Countries
Private Empire: Tillerson’s “Feel For Political Economies In Poor Countries Was Limited.” According to Private
Empire: ExxonMobil and American Power, “Tillerson was perhaps not ideally suited to assess Nigeria’s moral swamps. His feel for
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political economies in poor countries was limited. Even during his rise within ExxonMobil’ s international divisions, he had
never lived outside the United States.” [Private Empire: ExxonMobil and American Power, pg. 464, 2012]
YET LEANED TOWARD AN INTERNATIONALIST VIEW
Rex Tillerson Endorsed The View Of Elihu Root That The U.S. Must Maintain An Internationalist Foreign Policy
Over An Isolationist One. According to the Council on Foreign Relations, “Now, [Elihu] Root wrote this at a time when
Americans were debating whether to choose an isolationist foreign policy or an internationalist one. The Council on Foreign
Relations advocated the latter, and thankfully, this view eventually carried the day.” [Council on Foreign Relations, 3/9/07]
TILLERSON DID NOT BELIEVE U.S. SECURITY WAS DEFINED BY
CONSUMPTION OF MIDDLE EASTERN OIL
Rex Tillerson Believed The U.S. National Security Relationship In The Middle East Would Not Fundamentally
Change If The U.S. Became Independent Of The Need For Middle Eastern Oil. According to the Council on Foreign
Relations, MR. MURRAY: So oil doesn't drive those relationships and won't even if we could wean ourselves from all their
oil. MR. TILLERSON: I have never felt oil drove the -- were the only underpinnings in those relationships. It is important
not just because we get our oil, because if you really look at the amount of oil we physically get, it's important, but we could
replace it with a little higher cost. It's more a question of the importance of that region to global economic stability. And
we're going to still be interested in that. So if you have a supply -- if we're no longer getting any oil from the Middle East
because we're secure here, a disruption of oil supplies from that region will have devastating impacts on global economies.
Now is that important to us? Prob-ably so. So I'm not sure it changes the relationship dramatically. I think it may redefine the
priorities around the relationship, but I'm not sure it changes it dramatically.” [Council on Foreign Relations, 6/27/12]
Trade, Generally
TILLERSON WAS A VOCAL SUPPORTER OF FREE TRADE
Tillerson On Free Trade: “Net-Net It Is Positive”
2013: Rex Tillerson: “We Are Strong Proponents Of Free And Open Markets.” According to the UT Alumni Business
Conference, "We are strong proponents of free and open markets, we're strong proponents of allowing innovation and
technology to come to bare on the problem. [...] So wherever the barrels come from, you know when you burn it in your
automobile, or you put it in a gas fire generator; a molecule a is molecule, a molecule is a molecule. And the economy value
created from the other side of burning that molecule is the same. It doesn't matter if whether it's a Saudi barrel, a Canadian
barrel, a US barrel, or a Venezuelan barrel. It's all about acquiring supplies at an affordable reliable level, putting them into the
economic system and generating something of value." [Rex Tillerson at UT Alumni Business Conference, 2/21/13]
Rex Tillerson: “I Am A Free Trade Proponent. And I Think Net-Net It Is Positive […] Anytime You Eliminate
Barriers To Our Ability To Move […] Our Products […] To Achieve The Highest Value, That's A Good Thing For
Us. According to the Exxon Mobil Corporation 2014 Analyst Meeting, REX TILLERSON: “I am not agnostic, because I
am a free trade proponent. And I think net-net it is positive for -- it is positive for everyone first, but it's positive for us.
Anytime you eliminate barriers to our ability to move our feedstocks, or our products or our molecules around to get -- to
achieve the highest value, that's a good thing for us. And I think it's a good thing for US economic and trade policy as well.
That's the pitch we make always is this is a great opportunity to allow the US to get the highest value for its own natural
resources, and to allow the manufacturers to utilize these molecules, whether you are refiner, a petrochemical plant or an
industrial process that uses natural gas or whatever, to have access to the best slate of feedstocks they can put their hands on.”
[Exxon Mobil Corporation 2014 Analyst Meeting, 3/5/14]
Tillerson Supported The Free Flow Of Energy, Capital, And Human Talent Across Borders
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Rex Tillerson: “We Must Embrace The Free Flow Of Energy, Capital, And Human Talent Across Oceans And
Borders.” According to the Asia Society Global Forum, “We must embrace the free flow of energy, capital, and human talent
across oceans and borders. If we do, the energy industry has proven that we will forge the long-term partnerships and develop
the new technologies to unlock sources of energy safely and responsibly. We will strengthen energy security for all nations.
And we will build new bridges of trade and progress between countries and continents.” [Rex Tillerson, Asia Society Global
Forum, 6/13/13]
Tillerson Supported Free Trade Even If It Meant Energy Was Not Made In America
Rex Tillerson: “Energy Made In America Is Not As Important As Energy Simply Made Wherever It Is Most
Economic.” According to Private Empire: ExxonMobil and American Power, “‘The central reality is this: The global free market
for energy pro­ vides the most effective means of achieving U.S. energy security,’Tillerson said. ‘In the global market, the
nationality of the resource is of little relevance. . . .Energy made in America is not as important as energy simply made
wherever it is most economic.’ Punishing sanctions and uneconomic supply lockups such as those sometimes pursued by
China did undermine American security, but only because the United States should be ‘enlarging this global energy pool, not
dividing it.’” [Private Empire: ExxonMobil and American Power, pg. 246, 2012]
Tillerson Claimed Free Trade Was Important For Energy Security
Rex Tillerson: “The Global Free Market For Energy Provides The Most Effective Means Of Achieving U.S. Energy
Security.” According to Private Empire: ExxonMobil and American Power, ExxonMobil ran its own war game scenarios about oil
supply disruptions. The company’s political risk analysts asked themselves what would happen in the most extreme case
imaginable-for example, if Iran’s 2.3 million barrels per day of oil exports were removed from world markets because of a war,
while turmoil in Venezuela simultaneously removed another million barrels per day. The shock of losing 3.3 million barrels a
day of exports would certainly create price spikes, and soaring oil prices could produce economic turmoil in the United States
and Europe. Physical delivery of oil, however, did not look like a catastrophic problem, the planners concluded, at least not in
a crisis that lasted less than six months. The strategic petroleum reserve would help cushion any disruptions. After a certain
number of months, if the reserve ran low, governments might be forced to ration. But the extremity and unlikelihood of the
imagined events needed to produce such a physical supply problem suggested to ExxonMobil’ s risk analysts that there was ‘an
element of surge capacity in the global system,’ as the corporation’s Rex Tillerson put it. The company’s war gaming implied
that the global oil markets had become more resilient and flexible than some analysts assumed. At the same time, the threat of
disruption to physical supply from rogue states ‘is not very well understood, in terms of what would really happen,’ Tillerson
believed.26 ‘The central reality is this: The global free market for energy provides the most effective means of achieving U.S.
energy security,’ Tillerson said.” [Private Empire: ExxonMobil and American Power, pg. 245-246, 2012]
Under Tillerson, Exxon Pushed To Reject A “Fantasy” Of Energy Independence
Exxon’s Preferred Foreign And Energy Policy Would Accept “The Interconnectedness Of Global Oil Markets” And
Reject Fantasies Of Independence, And Recognize The Centrality Of Oil And Gas To The Energy Economy For
Decades. According to Private Empire: ExxonMobil and American Power, “To Tillerson and other ExxonMobil executives, Bush’s
speech signaled how flawed and politicized American energy policy had become. If Tillerson and his Management Committee
could write their own foreign and energy policy for the United States, it would involve, first, an acceptance of the
interconnectedness of global oil markets-and an end to fantasies about national ‘independence’ from those markets; and
second, a recognition that carbon-based fuels would be central to the energy economy for decades, even if a significant tax on
carbon was imposed eventually to address the risks of global warming. From those premises, ExxonMobil’s executives would
construct a deliberate, country-by-country strategy to maximize oil and gas supply through free-market competition and to
enforce the sanctity of commercial contracts to support that effort.” [Private Empire: ExxonMobil and American Power, pg.
440-441, 2012]
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2007: Tillerson Argued Innovation And Creativity In The Energy Industry Relied On “Strong International
Partnerships”
2007: Rex Tillerson: “The Key To Innovation And Creativity Needed To Address Global Energy Challenges Lies In
Free Markets And Strong International Partnerships.” According to Oil & Gas Journal, “Resource nationalism is
threatening the world’s economy and energy se-curity in the long term, Rex Tillerson, ExxonMobil Corp. chairman and chief
executive officer, told the World Energy Congress last week in Rome. ‘The key to innovation and creativity needed to address
global energy challenges lies in free markets and strong international partnerships,’ he said.” [Oil & Gas Journal, 11/19/07]
Rex Tillerson Endorsed Free Trade And Strong Global Partnerships To Grow The Energy Industry. According to the
Council on Foreign Relations, “A more effective means of strengthening U.S. energy security is by facilitating free trade and
investment, promoting stable fiscal, tax and regulatory systems, strengthening partnerships between producing and consuming
countries and taking other steps that expand and fortify a global free market for energy.” [Council on Foreign Relations,
3/9/07]
2015: Tillerson Argued That Free Trade Improved The “Lives Of People Across Borders, Regions And
Oceans”
Rex Tillerson: “History Is Clear And Unequivocal: Free Trade Lifts The Prospects Of Nations And Improves The
Lives Of People Across Borders, Regions, And Oceans.” According to World Gas Conference, “In recent weeks, there
have positive signs on this front in the United States. Congress has been debating Trade Promotion Authority. If passed, it
would give President Obama authority to move forward on two major, pending free-trade agreements: the Trans-Pacific
Partnership, which would strengthen the economic relations among 11 nations in the Asia-Pacific region, and the Transatlantic
Trade and Investment Partnership, which would increase trade between the U.S. and European Union. Completing such
agreements would revitalize the global discussion of – and renew the appreciation for – the value of international trade and
investment. History is clear and unequivocal: Free trade lifts the prospects of nations and improves the lives of people across
borders, regions, and oceans.” [Rex Tillerson, World Gas Conference, Paris, France, 6/2/15]
UNDER TILLERSON, EXXON WAS A VOCAL OPPONENT OF PROTECTIONISM
Tillerson Claimed Protectionism Was An “Unhealthy Attitude”
Rex Tillerson Called Protectionism “An Unhealthy Attitude” That “Sends The Wrong Message As To What
America Really Is About To The Rest Of The World.” According to CNBC/Dow Jones Business, “BARTIROMO: Do
you worry that we`re getting too protectionist? I mean first it was the CNOOC acquiring Unocal. There was a big problem
with that. And then it was Dubai. Are we getting too protectionist in the country? TILERSON: I think it`s an unhealthy
attitude for our country because we are looked at by the rest of the world as the home of free enterprise, the home of
freedom, and openness, and yet we erect these barriers. And I think it sends the wrong message as to what America really is
about to the rest of the world. That`s not what America is about.” [CNBC/Dow Jones Business Video, 3/8/06]
At Exxon, Tillerson Opposed Trade Barriers, Punitive Taxes, And Other Market Manipulations
Rex Tillerson Spoke Out Against Trade Barriers And Punitive Taxes In Terms Of The Negative Impact That
Would Have On The Global Energy Market. According to the Council on Foreign Relations, “This has important
implications for policymaking. Trade barriers, punitive taxes, artificial subsidies and other market manipulations may appear
to some to be in the interest of U.S. energy security. But to the extent they inhibit development and diversification of global
economic energy supply, they clearly are not.” [Council on Foreign Relations, 3/9/07]
Rex Tillerson: “Trade Barriers, Punitive Taxes, Artificial Subsidies And Other Market Manipulations” Hurt U.S.
Energy Security. “Trade barriers, punitive taxes, artificial subsidies and other market manipulations may appear to some to
be in the interest of U.S. energy security. But to the extent they inhibit development and diversification of global economic
energy supply, they clearly are not. A more effective means of strengthening U.S. energy security is by facilitating free trade
and investment, promoting stable fiscal, tax and regulatory systems, strengthening partnerships between producing and
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consuming countries and taking other steps that expand and fortify a global free market for energy. [Rex Tillerson, Council on
Foreign Relations Meeting, 3/9/07]
Rex Tillerson: “Trade Barriers, Punitive Taxes, Artificial Subsidies And Other Market Manipulations” Hurt U.S.
Energy Security. “Trade barriers, punitive taxes, artificial subsidies and other market manipulations may appear to some to
be in the interest of U.S. energy security. But to the extent they inhibit development and diversification of global economic
energy supply, they clearly are not. A more effective means of strengthening U.S. energy security is by facilitating free trade
and investment, promoting stable fiscal, tax and regulatory systems, strengthening partnerships between producing and
consuming countries and taking other steps that expand and fortify a global free market for energy. [Rex Tillerson, Council on
Foreign Relations Meeting, 3/9/07]
UNDER TILLERSON, EXXON REGULARLY OPPOSED ECONOMIC SANCTIONS
AGAINST OIL PRODUCERS
Private Empire: Exxon “Promoted Free-Trade Philosophies At Every Turn And Opposed Economic Sanctions
Against Oil Producers, Except In The Most Egregious Cases.” According to Private Empire: ExxonMobil and American
Power, “The economic interests of ExxonMobil and other international oil companies lay squarely in the realm of Douglas
Feith’s idealized vision of oil globalization, not in the realization of Mearsheimer ‘s pessimism. ExxonMobil’s oil and gas
holdings were so widely scattered around the world that the corporation and its shareholders were at least as vulnerable to
transport and production disruptions as China’s government. This understanding of risk shaped some of ExxonMobil’s
lobbying on foreign policy issues in Washington. The corporation promoted free-trade philosophies at every turn and opposed
economic sanctions against oil producers, except in the most egregious cases.” [Private Empire: ExxonMobil and American
Power, pg. 246, 2012]
Under Tillerson, Exxon Opposed Oil Sanctions On Iran, Libya And Syria
Exxon Opposed All Oil Sanctions On Libya, Iran, And Syria Prior To The September 11 Terrorist Attacks. According
to Private Empire: ExxonMobil and American Power, “The corporation promoted free-trade philosophies at every turn and
opposed economic sanctions against oil producers, except in the most egregious cases; until September 11, Exxon­ Mobil
lobbyists in Congress had opposed oil sanctions imposed on Libya, Iran, and Syria. The corporation ‘s economic self-interest
on the sanctions issue was obvious, but the policy arguments mounted on PowerPoint slides by its in-house advocates were
broad: The creation of a free-flowing global oil pool, one shaped to the greatest possible degree by market incentives, would
promote American national security, ExxonMobil’s representatives insisted.” [Private Empire: ExxonMobil and American
Power, pg. 246, 2012]
Trans-Pacific Partnership
2015: TILLERSON SUPPORTED THE TRANS-PACIFIC PARTNERSHIP (TPP)
Rex Tillerson Supported The Trans-Pacific Partnership And Said It Would “Strengthen The Economic Relations
Among 11 Nations In The Asia-Pacific Region.” According to World Gas Conference, “In recent weeks, there have
positive signs on this front in the United States. Congress has been debating Trade Promotion Authority. If passed, it would
give President Obama authority to move forward on two major, pending free-trade agreements: the Trans-Pacific Partnership,
which would strengthen the economic relations among 11 nations in the Asia-Pacific region, and the Transatlantic Trade and
Investment Partnership, which would increase trade between the U.S. and European Union. Completing such agreements
would revitalize the global discussion of – and renew the appreciation for – the value of international trade and investment.
History is clear and unequivocal: Free trade lifts the prospects of nations and improves the lives of people across borders,
regions, and oceans.” [Rex Tillerson, World Gas Conference, Paris, France, 6/2/15]
Rex Tillerson Called The Trans-Pacific Partnership “One Of The Most Promising Developments” For
“International Cooperation And Energy Trade.” According to the Asia Society Global Forum, “Even when a nation
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does not have a rich endowment of resources, we have learned that open markets and free trade can bring nations the energy
supplies they need. But only governments can open the avenues of free trade. In the years ahead, as the economy and energy
landscape evolves worldwide, leaders in the United States and Asia will need to examine how their own policies can support
international cooperation and energy trade. One of the most promising developments on this front is the ongoing effort for
the Trans-Pacific Partnership. The eleven nations that have been working to lower trade barriers and end protectionist
policies under this Partnership are a diverse mix of developed and developing economies. But all of them understand the value
of open markets to growth and progress for every nation. The prospects for the Trans-Pacific Partnership were recently
strengthened as the participating nations announced they will welcome Japan’s entry into the Partnership.” [Rex Tillerson,
Asia Society Global Forum, 6/13/13]
NAFTA
2012: TILLERSON PRAISED NAFTA
Rex Tillerson Praised NAFTA For Fostering A “Close Relationship” Between Canada, Mexico And The United
States’ Economies. “So again, coming back to North America and the size of the resource endowment, Canada has a huge
resource endowment; the United States has a huge resource endowment; Mexico has a huge resource endowment. All three
countries manage that resource endowment differently, but these three countries also have a long-standing historic relationship
in free trade through NAFTA and, because of NAFTA, have a close relationship through their economies, through coinvesting
in one another. And certainly between the three of us, there's a long historical relationship in energy supply.”
[Council on Foreign Relations Meeting with Rex W. Tillerson, 6/27/12]
Human Rights
UNDER TILLERSON, EXXON ARGUED OPERATING IN COUNTRIES WITH
ACCUSED OF ABUSES BENEFITED HUMAN RIGHTS
Exxon Talking Points On Human Rights Argued For Condemnation Of Abuses But Argued That Operating In
Countries Rife With Human Rights Abuses Was More Beneficial To Advancement Than Isolation. According to
Private Empire: ExxonMobil and American Power, “ExxonMobil’s policy about working in Equatorial Guinea, approved by
headquarters in Irving and distributed as talking points to public affairs officers worldwide, echoed the arguments that
Anton Smith made in his cables to the incoming Obama administration. The policy was reflected in 2009 talking points
on human rights that were issued for use when uncomfortable questions arose. The talking points reflected the evolution
of ExxonMobil’s attitudes toward human rights matters since the days of the Aceh civil war, but also the continuity of its
commitment to work with any government that would agree to acceptable legal contract terms, and that was not subject
to prohibitive sanctions under American or international law. ‘We publicly condemn the violation of human rights in any
form and actively express our views to governments around the world,’ the prepared talking points said. ‘We have been
dealing with these issues for many years and believe that our efforts improve the quality of life in communities where we
operate. ExxonMobil is very concerned about human rights. However, we also believe that engagement enhances the
cause of human rights far more than political isolation. Our practices are designed to ensure respect for human rights in
our sphere of influence, which may by example have its effect on others.’” [Private Empire: ExxonMobil and American
Power, pg. 521, 2012]
Exxon Argued That By Operating In Nations With Human Rights Abuse Records, It Provided Economic
Resources For Modernization, But That It Was Not Exxon’s Responsibility To Ensure “Rule Of Of Law,
Healht, Education”
Exxon’s Philosophy In Troubled Countries Was The Corporation Contributed Taxes And Royalties To The Host
Government Through Its Operations And It Was Up To The Government To Take Responsibility For “Rule Of
Law, Health, Education.” According to Private Empire: ExxonMobil and American Power, “Simeon Moats, the former State
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Department official who worked on Africa policy in ExxonMobil’s Washington office, developed a PowerPoint presentation
entitled ‘Business Practices & Transparency,’ which described, in simple and graphic form, the corporation’s philosophy about
the allocation of responsibilities in poor and troubled countries. ExxonMobil would contribute ‘taxes and royalties’ as well as
‘transparency’ to the host African government. The government would in turn take responsibility for the ‘rule of law, health,
education’ and the ‘business environment.’ ExxonMobil’ s disciplined, modern ‘business practices’ could also strengthen the
national economy.’” [Private Empire: ExxonMobil and American Power, pg. 527-528, 2012]
In Troubled Countries, Such As Equatorial Guinea, Exxon Argued Circumstances Beyond Their Control Often
Required Them To Do Business With Government Officials, And Exxon’s Obligation Was Only To Do Business
Ethically And Comply With U.S. Laws. According to Private Empire: ExxonMobil and American Power, “On May 4, 2009, Ken
Cohen wrote to Human Rights Watch to describe and defend the corporation’s policies in Equatorial Guinea. ‘ExxonMobil is
committed to being a good corporate citizen wherever we operate worldwide,’ Cohen wrote. ‘We maintain the highest ethical
standards, comply with all applicable laws and regulations, and respect local and national cultures.’ At the same time, ‘the
practical realities of doing business in developing countries are challenging. . . . E.G., like many developing nations, has a
limited number of local businesses and a small population of educated citizens. . . . Many businesses have some family
relations with a government official, and virtually all government officials have some business interests of their own, or
through a close relative. . . . ‘While it may be virtually impossible to do business in such countries without doing business with
a government official or a close relative of a government official, it is still possible-indeed, it is expected-that we do business
ethically and comply with all U.S. and local laws.’” [Private Empire: ExxonMobil and American Power, pg. 532-533, 2012]
China
EXXON PARTNERED WITH STATE-OWNED PETROCHINA
Exxon Mobil Signed A Long-Term Agreement To Sell Liquefied Natural Gas To Chinese Company Petrochina.
According to Natural Gas Week, “Exxon Mobil demonstrated again last week that its near-to-intermediate term opportunities
are in the natural gas realm rather than in oil when it signed a long-term agreement to supply liquefied natural gas to
PetroChina. The company said that it would provide the giant Chinese energy conglomerate with 300 million cubic feet of gas
per day from its share in the Gorgon LNG project on Australia’s North West Shelf in a 20-year sale and purchase agreement.”
[Natural Gas Week, 8/24/09]
2013: Exxon Mobil Corporation Partnered With PetroChina To Develop The West Qurna-1 Oil Field In Near Basra,
Iraq. According to Wall Street Journal, “Exxon Mobil Corp. agreed to sell stakes in its West Qurna-1 oil project in Iraq to
PetroChina Co. and PT Pertamina (Persero) of Indonesia. Exxon said Thursday that PetroChina would take a 25% stake in
the project and Pertamina would take a 10% stake. The West Qurna-1 field is located near Basra in southern Iraq. It is one of
several big fields that Western oil companies agreed in 2010 to help Iraq develop. After selling the stakes, Exxon will retain
25% of the field and continue as its operator. The rest of the field is owned by Royal Dutch Shell PLC and Iraq’s state-owned
South Oil Co.” [Wall Street Journal, 11/28/13]
Petrochina Was A Subsidiary Of The State-Owned China National Petreoleum Company. According to Financial
Times, “Wang Yilin, chairman of China’s largest energy group CNPC, has been earning just $107,000 a year — equal to
what ExxonMobil boss Rex Tillerson, Donald Trump’s nominee for secretary of state, earns in less than a day and a
half.[…] China’s two state-owned oil and gas majors, China National Petroleum Company (CNPC) and China
Petrochemical Corporation, revealed 2015 pay levels for their chairmen and top executives this week. […] The two energy
companies’ listed units, PetroChina and Sinopec, both disclose executive pay details in their annual reports, but
information on pay at the groups’ unlisted holding companies provides a fuller picture.” [Financial Times, 12/30/16]
Brazil
As Exxon Chief, Tillerson Withdrew The Company From Brazil Because He Believed Oil Discoveries There Would
Be Too Costly To Develop. According to International Oil Daily, “Exxon Mobil /Chief Executive Rex Tillerson recently
told Energy Intelligence that a key reason Exxon withdrew from Brazil was because the discoveries there would be too costly
to develop, and that he did not consider Brazil especially attractive. Gabrielli disagreed politely, but vehemently.” [International
Oil Daily, 5/10/11]
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Iran
IRAN NUCLEAR DEAL
As Exxon Chief, Tillerson Did Not Oppose The Iran Nuclear Deal, As It Could Potentially Open Markets For The
Company. While appearing on The Situation Room With Wolf Blitzer, Gloria Borger said, “GLORIA BORGER, CNN
CHIEF POLITICAL ANALYST: Look, I think we know what Donald Trump believes. At this point we don’t know what
Rex Tillerson believes. We know what he’s done as the CEO of Exxon, where he did an awful lot of business with Russia. He
became a friend of Vladimir Putin’s. But we also don’t know, for example, Wolf, what would he do on the Iran nuclear deal?
He wasn’t opposed to the Iran nuclear deal. I should say Exxon wasn’t necessarily, because it would open, potentially, oil
markets for them. They were for TPP at one point. They did not -- Tillerson did not oppose the Paris climate deal.”
[International Wire, 12/13/16]
2016: Tillerson Acknowledged Exxon Would Consider Operating In Iran
Tillerson On Iran: U.S. Companies Remained Unable To Conduct Business In Iran, But If “Things Open Up For
U.S. Companies. We Would Certainly Want To Take A Look.” According to CNBC, “REX TILLERSON: U.S.
companies like ours are still unable to conduct business in Iran. A lot of our European competitors are in, working actively. I
don’t know that-- that we’re necessarily at a disadvantage. The history of Iranian-- in foreign investment in the past, their
terms were always quite challenging, quite difficult. We--never had large investments in Iran for that reason. And I don’t know
that the Iranians are gonna be any different today. We’ll have to wait and see and there hasn’t been any contracts put out. But I
also learned a long time ago that sometimes being the first in is not necessarily best. We’ll wait and see if things open up for
U.S. companies. We would certainly take a look because it’s a huge resource-owning country.” [CNBC, 3/3/16]
2012: TILLERSON WARNED THAT INCREASED TENSIONS WITH IRAN WOULD
DRIVE UP CRUDE OIL PRICES
Rex Tillerson Said Iran-Related Tensions Could Drive Up Crude Oil Prices. According to Platts Oilgram News,
‘Reporters grilled Tillerson on his outlook for crude oil and gasoline prices. The CEO said he sees high crude prices, driven in
part by Iran-related tensions, as pressuring gasoline prices. Current gasoline prices are ‘entirely’ crude oil price driven, he said.
‘If the Strait of Hormuz was closed...clearly there would be a significant amount of volatility immediately’ in crude prices,
Tillerson said. While a recent run-up in crude prices was stimulated in part by solid economic performance, ‘of late’ crude
prices have been influenced by Iran-related concerns, he said. But state-owned strategic petroleum reserves in the US, Europe
and China can step in and ‘moderate the run at the pump,’ Tillerson said. ‘There’s a lot of things you can do to mitigate’ high
prices, he said.’ [Platts Oilgram News, 3/9/12]
Libya
TILLERSON CONTINUED BUSINESS OPERATIONS IN LIBYA, ADMIST
GADDAFI’S ANTI-WEST RHETORIC
February 2007: Tillerson Visited Tripoli To Attend The Signing Of An Energy Exploration Venture, Even As
Muammar Gaddafi’s Increased His Anti-Western Corporate Rhetoric. According to Reuters, “An upsurge in anti-
Western rhetoric is unlikely to scare foreign investors off Libya because Muammar Gaddafi has made clear his political views
will not block economic reform.The veteran ruler made stinging attacks on Western corporate "colonialism" in early March in
speeches marking the 30th anniversary of his state of the masses Jamahiriyah system which bans elections and political
parties.[…] But analysts consider that his opinions -- albeit heartfelt -- will not endanger pro-business reforms Gaddafi himself
has sponsored in the oil- and gas-exporting OPEC member country. […] Rex Tillerson, chairman of America’s Exxon Mobil,
the world’s largest publicly listed oil firm, visited Tripoli in February to attend the signing of an energy exploration venture.
Claire Spencer of Britain’s Royal Institute of International Affairs said the speeches may also have been a bid to signal that
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Libya still needs to be courted and remains important. ‘They feel they’ve been ignored since WMD,’ she said of the 2003
weapons move. ‘They suspect the U.S. thinks it’s dealt with Libya and they see that the more outrageous rhetoric these days
comes from Iran and Venezuela, which gets them the attention.’” [Reuters, 3/20/07]
Iraq
ONE IRAQ POLICY
2011: Under Tillerson, Exxon Negotiated Autonomous Deals With Iraq’s Kurdish Region, “Infuriating”
Baghdad
Under Tillerson, Exxon Infuriated Baghdad Government By Signing Separate Deals With Iraq’s Kurdish Region To
For Crude Exploration. According to The Washington Times, “Iraq’s prime minister met with the head of Exxon Mobil
Corp. on Monday to discuss the company’s plans in the country, raising the possibility that Baghdad could be mending its
dispute with America’s largest oil company. Exxon is helping to develop one of Iraq’s largest oil fields, but it has infuriated
Baghdad by signing separate deals with the OPEC member’s largely autonomous Kurdish region to hunt for crude there, too.
Baghdad and the country’s Kurdish minority have been at loggerheads for years over rights to develop Iraq’s vast oil wealth,
but tensions have been on the rise in recent months. The Kurds, who have their own armed forces, have signed dozens of
deals with foreign oil companies since the 2003 U.S.-led invasion.” [Washington Times, 1/21/13]
Exxon’s Deal Directly Contradicted Washington’s One Iraq Policy
Exxon’s Deal With The Iraq’s Regional Kurdish Government Contradicted Washington Diplomat’s “One Iraq”
Policy That Maintained Baghdad As The Sole Power Center In The Country. According to Politico, “When the regional
Kurdish government offered access to its oil resources under deals that would allow oil companies an ownership stake, several
small and midsize energy companies jumped in. And by late 2011, so did Exxon, becoming the only company to enter the
northern fields while holding a contract with the Iraqi government. That move infuriated Maliki, who was anxious to keep
control over the foreign investments pouring into Iraq and quell any move that offered the Kurdish government leverage for
more independence. It also put U.S. diplomats in an awkward position: Washington was backing a ‘one Iraq’ policy that
maintained Baghdad as the sole power center in the country, even as it courted support from the U.S.-friendly Kurds. ‘For the
Iraqi government, it was a question of national sovereignty,’ said a former U.S. official. ‘If regions could sign their own [deals],
it could lead to a devolution of revenue flows and powers [and] that threatened the viability of Iraq as a unified state.’”
[Politico, 12/27/16]
Tillerson Told State Department Officials That Exxon Had Negotiated A Separate Deal With Kurdish Regional
Officials. According to Politico, “Tillerson and his team of Exxon executives had negotiated their deal privately with the
Kurdish regional officials, and sources familiar with the oil industry in Iraq at the time disagreed about whether Maliki’s
government was fully informed about those talks. After the Kurdish deal was concluded in October 2011, Tillerson informed
State Department officials during a terse phone call that left some of the officials frustrated and angry. The Exxon chief made
it clear that the company intended to proceed with the deal despite certain opposition from the Iraqis.” [Politico, 12/27/16]
Government Official On The Incident: “I Think There Was A Calculated Decision [By Exxon] To See If They
Could Get Away With This.” According to Politico, “Part of the task, officials said, was convincing Iraq that the U.S.
government had no control over the activities of a private company like Exxon, even when it contradicted stated U.S. policy.
And under provisions of the newly adopted Iraqi constitution, Exxon’s contract with Kurdish government in city of Erbil did
not violate the law, which gave the regional authorities some power to develop their own resources. ‘I think there was a
calculated decision [by Exxon] to see if they could get away with this,’ another former government source said.” [Politico,
12/27/16]
Maliki’s Government Threatened To Throw The Country Into Civil War If Exxon Continued With Its
Deal
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Maliki’s Government Threatened Civil War If Exxon Pursued Its Deal With The Kurdish Regional Government.
According to Politico, “The outrage from Baghdad came quickly. Maliki’s media adviser said the Iraqi prime minister would
‘do anything necessary to preserve the national wealth,’ warning that the conflict could lead to civil war and that Exxon had to
choose between its Iraqi oil contracts or the Kurdish deal. Some of the six northern blocks that Exxon had agreed to explore
were in territories whose control was disputed between Iraq and the Kurds, and the oil company quickly agreed to freeze its
deal while it talked with Baghdad. Those discussions dragged on through the rest of the year, finally culminating in Tillerson’s
face-to-face meeting with Maliki in January 2013, and another one shortly thereafter with Kurdish regional President Masoud
Barzani in Switzerland. Finally, Iraq agreed to let the company keep both contracts.” [Politico, 12/27/16]
2013: Tillerson Met With Iraqi Prime Minister Nouri Al-Maliki To Discuss Working Conditions And Exxon’s
Operations In Iraq. According to The Washington Times, “Iraq announced the meeting between Prime Minister Nouri
al-Maliki and Exxon Chairman and CEO Rex Tillerson in a brief statement following the talks in Baghdad. It offered few
specifics, saying that the men discussed the company’s activities and working conditions in Iraq. Mr. Tillerson said Exxon
was eager to continue to expand its work in Iraq and ‘will take important decisions in this regard,’ according to the
statement.” [Washington Times, 1/21/13]
Tillerson Met With Maliki And Shortly Thereafter Met With Kurdish Regional President Masoud Barzani In
Switzerland. According to Politico, “Those discussions dragged on through the rest of the year, finally culminating in
Tillerson’s face-to-face meeting with Maliki in January 2013, and another one shortly thereafter with Kurdish regional
President Masoud Barzani in Switzerland. Finally, Iraq agreed to let the company keep both contracts.” [Politico, 12/27/16]
Iraq Only Ultimately Only Lightly Penalized Exxon
Iraq Finally Agreed To Let Exxon Keep Both Contracts, But Penalized The Company By Canceling A Service
Contract To Operate A Water-Injection Project For The Southern Oil Fields. According to Politico, “Finally, Iraq
agreed to let the company keep both contracts. Baghdad did hit the company with one penalty: It canceled a service contract
in which Exxon was to have operated a water-injection project for the southern oil fields. But unfortunately for Iraq, that
project had been designed to help maintain oil production volumes from wells operated by several companies, and its
cancellation ultimately hurt output from some of those wells.” [Politico, 12/27/16]
Saudi Arabia
Note: For more information on this incident, see the Energy and Environment Section.
Rex Tillerson Criticized President Bush For Calling On Saudi Arabia To Boost Oil Production But Not Opening Up
Offshore Areas And Increasing Production In The U.S. According to the Globe and Mail, ‘Last week, Exxon Mobil
Corp.’s chief executive Rex Tillerson chided President George W. Bush for asking Saudi Arabia to boost its production, while
not doing more to increase production at home in the U.S., particularly off the coasts of Florida and California. ‘There is no
question in my mind that there is significant conventional resources available,’ Mr. Tillerson said in an interview last week. ‘If
you are looking for larger fields, they will probably be found in the off-shore areas that are currently off limits.’ Those offshore
areas are closed to exploration and drilling under Congressional moratoriums and Presidential executive orders that command
broad support among elected officials in the politically powerful states of California and Florida. Opening these areas up could
prove nettlesome.’ [Globe and Mail, 5/23/08]
Russia
RUSSIA WELCOMED TILLERSON SERVING AS SECRETARY OF STATE…
Russia Indicated It Would Welcome Tillerson As Secretary Of State.According to CNN, “Russia has already indicated it
would welcome Tillerson being named America's top diplomat. ‘Trump continues to amaze,’ Alexey Pushkov, the head of the
foreign affairs committee in the lower house of Russian parliament, said on Twitter. He said that selecting Tillerson would be a
‘sensation’ and noted he has ‘a lot of experience working with Russia.’” [CNN, 12/11/16]
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The Guardian: “The Kremlin Praised The Professionalism Of Rex Tillerson.” According to the Guardian, “The
Kremlin has praised the professionalism of Rex Tillerson, thought to be Donald Trump’s leading contender for secretary of
state, the ExxonMobil CEO who has forged close ties to Russia.” [The Guardian, 12/12/16]
Vladimir Putin Spokesman Dmitry Peskov: Tillerson Has “Had Contacts With Our Representatives More Than
Once” And Has Fulfilled His Responsibilities In A “Highly Professional Manner.” According to the Guardian,
“‘On account of his work as the head of one of the largest oil companies, he had contacts with our representatives more
than once,’ President Vladimir Putin’s spokesman Dmitry Peskov told journalists on Monday. ‘He fulfills his
responsibilities in a highly professional manner.’” [The Guardian, 12/12/16]
At Exxon, Tillerson Sought To Foster Closer Ties With Russia
Tillerson Hoped The Exxon Deal Could Lead To Closer Ties Between Russia And The U.S. According to CNN,
‘Tillerson himself seemed hopeful that the Exxon deal could lead to even closer ties between the two countries. ‘It cannot be
anything but helpful to broadening the relationship between the American people and the Russian people,’ Tillerson said at the
time.’ [CNN, 12/11/16]
In 2011, Tillerson Struck A Deal With Rosneft, Hailed By Putin Ally Igor Sechin And Chairman Of Rosneft As A
‘Giant Leap Forward… More Ambitious Than Man’s First Walk In Space Or Sending A Man To The Moon.’
According to CNN, ‘Tillerson’s biggest deal in Russia was announced in 2011 with Rosneft. The companies were focused
on drilling for oil in three key Russian regions: the Arctic, the deepwaters of the Black Sea, and Siberia. In 2012, Igor
Sechin, a close ally of Putin and chairman of Rosneft, hailed the partnership as a ‘giant leap forward’ and argued it’s ‘more
ambitious than man’s first walk in space or sending a man to the moon.’’ [CNN, 12/11/16]
Tillerson Opposed Obama Administration Sanctions Against Russia, As Exxon Held An Agreement With
State-Owned Rosnetft To Expand Joint Drilling In The Arctic Ocean
As The Obama Administration Encouraged Distance From Russia And Prepared Sanctions Against Them,
Tillerson Was Pursuing An Agreement To Promote More Business With State-Owned Rosneft To Expand Joint
Drilling In The Arctic Ocean. According to the New York Times, “Mr. Tillerson’s clever maneuvering in Russia at a time of
growing tensions with the West was amply shown in 2014, shortly after the United States and its allies applied sanctions on
Russia for meddling in Ukraine. President Obama asked American business leaders not to attend a major business forum in
Russia that May, and Mr. Tillerson obeyed the president’s wishes. But Mr. Tillerson, Exxon Mobil’s chief executive, still found
a way to get a seat at the table. He sent his company’s top exploration official in his place. The official, Neil W. Duffin, signed
an agreement to promote more business with state-owned Rosneft to expand joint drilling in the Arctic Ocean, develop shale
fields with new technologies and cooperate on a gas export plant in Siberia. Tougher sanctions eventually froze the growth of
Exxon’s activities in Russia, but Mr. Tillerson had once again proved his commitment to doing business with the country’s
president, Vladimir V. Putin.” [New York Times, 12/11/16]
Tillerson Lobbied Against Sanctions To Preserve His Business Deal With Rosneft. According to Politico, “Shortly
before sending his emissary to St. Petersburg to sign the deal, Tillerson told reporters in Texas that he was lobbying
Washington against sanctions. ‘Our views are being heard at the highest levels,’ he said. ‘There has been no impact on any
of our business activities in Russia to this point, nor has there been any discernible impact on the relationship’ with
Rosneft, he added.” [Politico, 12/10/16]
Tillerson Has Opposed Sanctions On Russia Because He Saw Them As A Barrier To New Oil Development In
The Barents Sea And The Bazhenov Shale Field In Western Siberia. According to the New York Times, “Mr.
Tillerson has opposed sanctions on Russia, which are the single greatest obstacle to foreign investment in that country.
Russia has two enormous areas for new oil development, in the Barents Sea and the Bazhenov shale field in western
Siberia, that are essentially closed to development because of a lack of foreign capital and expertise. Exxon was poised to
invest in both areas before the sanctions.” [New York Times, 12/11/16]
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Tillerson Said Russia Claimed That Russia Had Worked With Exxon To Help Them Continue To Do Business In The Country
Tillerson: “We Are Very Anxious To Get Back To Work [In Russia.]” According to CNN, “‘We are very anxious to get
back to work there,’ Tillerson told industry analysts in March when asked if Exxon would be interested in restarting its venture
with Rosneft in Russia.” [CNN, 12/11/16]
Tillerson: The Russians Haven't Done Anything To “Make The Situation Worse,” To The Contrary, Russia
Has “Done Things To Help Us Hang On To The Rights We Have’ In The Wake Of The Sanctions.”
According to CNN, “Tillerson said he's ‘thankful’ the Russians haven't done anything to ‘make the situation worse.’
To the contrary, Tillerson said Russia has ‘done things to help us hang on to the rights we have’ in the wake of the
sanctions. ” [CNN, 12/11/16]
Tillerson Would Benefit From Lifting The Russian Sanctions
Tillerson’s Retirement Funds Could “Potentially Be Affected By State Department Activities” Including For
Example, His Benefitting “From Such Potential Department Actions As The Lifting Of Sanctions On Russia.
According to the Wall Street Journal, “Mr. Tillerson, who is slated to retire next year, has retirement funds worth tens of
millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit
from such potential department actions as the lifting of sanctions on Russia.” [Wall Street Journal, 12/10/16]
CNN: “Exxon Said It Could Have Lost Up To $1 Billion Due To The Sanctions” And Would Therefore Stand To
“Gain If Sanctions Are Lifted On Russia By The New Administration.” According to CNN, “In 2014, Exxon was hit
hard by a round of U.S. and European Union sanctions that targeted Russia for its intervention in Ukraine. Exxon said it
could have lost up to $1 billion due to the sanctions, according to regulatory filings. Exxon would likely stand to gain if
sanctions are lifted on Russia by the new administration.” [CNN, 12/11/16]
Republicans Expressed Concern Over Tillerson’s Ties To Putin
Marco Rubio: “Being A ‘Friend Of Vladimir’ Is Not An Attribute I Am Hoping For From A Secretary Of State.”
According to the New York Times, “Senator Marco Rubio, Republican of Florida, said on Twitter on Sunday, ‘Being a “friend
of Vladimir” is not an attribute I am hoping for from a Secretary of State.’” [New York Times, 12/11/16]
John McCain: “It’s A Matter Of Concern To Me That He Has Such A Close Personal Relationship With Vladimir
Putin And Obviously They’ve Done Enormous Deals Together. That Would Color His Approach To Vladimir Putin
And The Russian Threat.” According to Reuters, “‘It’s a matter of concern to me that he has such a close personal
relationship with Vladimir Putin and obviously they’ve done enormous deals together. That would color his approach to
Vladimir Putin and the Russian threat,’ Republican Senator John McCain told CBS.” [Reuters, 12/12/16
2008: TILLERSON CRITICIZED RUSSIA’S “RULE OF LAW”
2008, Rex Tillerson: ‘Russia ‘Must Improve The Functioning Of Its Judicial System And Its Judiciary. There Is No
Respect For The Rule Of Law In Russia Today.’’ According to the New York Times, ‘Rex Tillerson, chairman and chief
executive of Exxon Mobil, stressed that Russia ‘must improve the functioning of its judicial system and its judiciary. There is
no respect for the rule of law in Russia today.’ In both cases, differences stretch back beyond the past decade of prosperity to
the 1990s. In the West today, some paint Russia as newly defiant of NATO expansion, ignoring that Russia in the 1990s was
equally defiant but too weak to be convincing.’ [New York Times, 6/9/08]
Qatar
TILLERSON PRAISED QATAR AS A MODEL FOR HOW TO DO BUSINESS IN THE
MIDDLE EAST
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2011: Tillerson Praised Qatar As A Model For How To Do Business In The Middle East. ‘They have placed their
emphasis on education and technology development, but they have centered their investment approach to honoring contracts
and compliance with the rule of law and creating the right conditions where risks can be taken and rewards can be gained
between investors and the government as well. So it is a model, I think, of how to partner between national oil companies and
international oil companies with a very supportive government creating the right conditions for investments to perform well
for everyone.’ [‘Mornings with Maria,’ CNBC, 4/7/11; 110407_MM_96475]
2009: EXXON INVESTED IN NATURAL GAS FIELDS IN QATAR
Exxon Invested $30 Billion To Develop The World’s Largest Natural Gas Field In Qatar. According to Forbes,
‘ExxonMobil’s bet on natural gas best comes into focus 7,900 miles away from its Irving, Tex. headquarters, in the Persian
Gulf state of Qatar. There ExxonMobil is nearing completion of a $30 billion project to develop the world’s biggest natural
gas field. Four giant plants, the biggest of their kind, will chill the gas into liquefied natural gas for loading onto thermos-bottle
tankers (also the biggest) and shipment to ports around the world. The Qatar megaproject will by next year boost
ExxonMobil’s gas production 12% to 9.9 billion cubic feet a day, and vault the company into first place as the world’s biggest
natural gas producer not controlled by a government. Qatar volumes will help increase total oil and gas output roughly 5% to
the energy equivalent of 4.3 million barrels of oil a day. The country will contribute an estimated 7% of ExxonMobil’s pretax
earnings (which were $55 billion in the last 12 months). All the big oil companies are drifting away from petroleum into natural
gas, and for the same two reasons that Exxon is: Gas is cleaner-burning and still plentiful. With Qatar, Exxon has gotten ahead
of its competition.’ [Forbes, 8/24/09]
Niger Delta
UNDER TILLERSON, EXXON OIL LEAKS CONTRIBUTED TO NIGER DELTA’S
POVERTY
As The Result Of Repeated Oil Spills In The Niger Delta, Including Exxon Oil Lines, Fewer Than Half
Of The Population Had Access To Clean Water
Under Tillerson, Exxon Mobil Was Partially Responsible For A Series Of Oil Spills That Polluted The Niger Delta
And Contributed To Ongoing Illness And Poverty In The Country. According to The Week, “A series of spills, some of
them the responsibility of the American multinational ExxonMobil, have been polluting the Niger delta for five decades. One
estimate says the amount spilled in the region over nearly 50 years totals 10.5 million barrels. That is more than five times the
worst estimate of the spillage so far from the Deepwater Horizon leak in the Gulf. Yes despite the pollution, illness and
poverty caused by the ongoing leaks in Nigeria, they rarely make the international headlines. And there has been no highprofile
effort to correct the situation.” [Week, 6/17/10]
Nigerian Academic Groups And Environmentalists Alleged That Due To Repeat Oil Leaks In The Niger Delta,
Less Than Half The Population Had Adequate Access To Clean Water. According to The Week, “The Niger delta is
the source of light Nigerian crude – the world’s best quality oil – and supplies 40 per cent of all crude imported by the United
States. With 606 oil fields, the region is covered in hundreds of pipelines, many of which are more than 40 years old and in
need of repair. Nigerian academics and environmental groups argue that multinational oil companies have acted so recklessly
in the region that much of the delta has been destroyed by leaks. Life expectancy in its rural communities has fallen to just
over 40 years, while at least half the population have little or no access to clean water.” [Week, 6/17/10]
May 2010: Exxon Failed To Properly Stop A Massive Oil Leak In The Niger Delta For More Than A Week
Under Tillerson, Exxon Mobil Was Partially Responsible For A Series Of Oil Spills That Polluted The Niger Delta
And Contributed To Ongoing Illness And Poverty In The Country. According to The Week, “A series of spills, some of
them the responsibility of the American multinational ExxonMobil, have been polluting the Niger delta for five decades. One
estimate says the amount spilled in the region over nearly 50 years totals 10.5 million barrels. That is more than five times the
worst estimate of the spillage so far from the Deepwater Horizon leak in the Gulf. Yes despite the pollution, illness and
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poverty caused by the ongoing leaks in Nigeria, they rarely make the international headlines. And there has been no highprofile
effort to correct the situation.” [Week, 6/17/10]
Residents Of The Niger Delta Alleged That Exxon Failed To Compensate Them For The Leak, And That
Oil Continued To Wash Ashore For Weeks After The Leak
Resident Of The Niger Delta Alleged That Exxon Failed To Properly Clean Up The Oil And Failed To Compensate
Them For The Illness And Loss Of Income Suffered As A Result Of The Leak. According to The Week, “Residents
who demonstrated against ExxonMobil claim they were attacked by security guards. They say their calls for $1bn in
compensation for the illness and loss of income suffered as a result of the leak have been ignored by the multinational. Six
weeks after the pipeline ruptured, thick balls of tar are still being washed up on the beach.” [Week, 6/17/10]
Residents Claimed Exxon Security Guards Attacked Them When They Protested Exxon’s Response
Residents Of The Niger Delta Alleged That Exxon Mobil Security Guards Attacked Them When They Protested
The Company’s Response. According to The Week, “Residents who demonstrated against ExxonMobil claim they were
attacked by security guards. They say their calls for $1bn in compensation for the illness and loss of income suffered as a result
of the leak have been ignored by the multinational. Six weeks after the pipeline ruptured, thick balls of tar are still being
washed up on the beach.” [Week, 6/17/10]
Tillerson Admitted That Exxon Deliberately Had No Controls In Place To Stop Ruptures Like That In
The Niger Delta Once They Occurred
Shortly After The May 2010 Leak In The Niger Delta, Tillerson Admitted That Exxon Did Not Have Adequate
Means To Stop Ruptures Once They Occurred. According to The Week, “‘It happens all the year round,’ said Nnimo
Bassey, the Nigerian head of Friends of the Earth International, in a recent interview with the Observer. ‘The whole
environment is devastated. The latest revelations highlight the massive difference in the response to oil spills. In Nigeria, both
companies and government have come to treat an extraordinary level of oil spills as the norm.’ It will not have been lost on
Bassey and other campaigners for Nigeria that Rex Tillerson, chairman and chief executive of ExxonMobil, told the US
Congress on Tuesday that his corporation would have been just as powerless as BP to stop the catastrophic Gulf oil leak.
‘When these things happen we are not very well equipped to handle them,’ said Tillerson. ‘There is no response capability that
will guarantee you will never have an impact. It does not exist.’” [Week, 6/17/10]
Venezuela
2008: HUGO CHAVEZ SEIZED EXXON ASSETS
Venezuela President Hugo Chavez Seized Exxon Assets In Venezuela As He Sought To Nationalize The Countries’
Oil Operations. According to Reuters, “The United States on Wednesday backed Exxon Mobil Corp’s effort to win
compensation from Venezuela for seized assets in a case that has prompted the OPEC nation to threaten to cut off oil
supplies to America. Venezuelan President Hugo Chavez, a foe of the United States, says Exxon court victories that resulted
in $12 billion in Venezuelan assets being frozen over the seizure is part of an ‘economic war’ to unseat him directed by the
Bush administration. Despite its support for Exxon, the United States denies it is working to oust Chavez and has distanced
itself from the specific legal case. ‘We fully support the efforts of Exxon Mobil to get a just and fair compensation package for
their assets according to the standards of international law,’ said State Department spokesman Sean McCormack. ‘But we are
not involved in that dispute. It is something that has to be litigated between Venezuela and Exxon Mobil and various courts
around the world,’ he added.[…] Chavez stopped oil exports to Exxon on Tuesday, escalating Venezuela's multibillion-dollar
fight with the U.S. company over his nationalization of a project last year that was part-owned by Exxon and Britain's BP.”
[Reuters, 2/13/08]
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GOVERNMENT AND CAMPAIGN REFORM
Section Overview:
While CEO of ExxonMobil, Tillerson rejected proposals giving shareholders more of say in Exxon’s political
contributions and requiring complete disclosure of the company’s political spending.
ExxonMobil was a top political donor to Representative Barton while Barton was helping Exxon extract concessions on
the Consumer Product Safety Improvement Act.
Tillerson criticized the United States tax code, and “subsidies and loopholes,” and said he would give up loopholes in
exchange for a simpler tax code.
Tillerson criticized the “propensity” of the government to enact regulations and said they hinder competitiveness and the
ability to extract oil and gas.
Campaign Finance
TILLERSON REJECTED A PROPOSAL ALLOWING EXXON SHAREHOLDERS TO
HAVE MORE OF A SAY IN EXXON’S POLITICAL CONTRIBUTIONS ALLOWED
UNDER CITIZENS UNITED
During A Shareholders Meeting, Rex Tillerson On Behalf Of The Board, Rejected A Proposal That Would Allow
Shareholders To Have More Of A Say In Exxon’s Political Contributions Allowed Under Citizens United. According
to Fair Disclosure, “PATRICIA DALY: You know that Citizens United now allows for unlimited financing and participation
for companies in the electoral process in our country. I can summarize Mr. Monks here by saying imagine what will happen to
the right of individual citizens and the basis of our right of freedom and to participate in our government when companies can
take over that process. It is essential to the integrity of democracy in America for the public to be informed on the course of
financing of political dialogue and if we as involved and interested owners cannot hold Exxon accountable for how company
funds are spend on politics, who can? Thank you for your time. REX TILLERSON: Thank you, Sister Pat. The board
recommends a vote against this proposal as outlined on page 59 of the proxy statement. The next share holder proposal calls
for a report on political contributions and is shown on pages 59 and 60 of the proxy statement. I understand that Ms. Michelle
Miller will present the proposal? Ms. Miller?” [Fair Disclosure, 5/25/11]
TILLERSON REJECTED A PROPOSAL REQUIRING COMPLETE DISCLOSURE
OF EXXON’S POLITICAL SPENDING
Rex Tillerson, On Behalf Of The Board Of Exxon, Rejected A Shareholder Proposal That Would Require
“Complete Disclosure” Of The Business’ Political Spending, “Including Payments To Trade Associations And
Other Tax Exempt Organizations For Political Purposes.” According to Fair Disclosure, “MICHELLE MILLER,
SHAREHOLDER: Disclosure is consistent with public policy in the best interest of the Company and its shareholders and
critical for the compliance with federal ethics laws. Moreover, the Supreme Court's citizens united decision recognized the
importance of political spending disclosure for shareholders when it said disclosures permits citizens and shareholders to react
to the speech of corporate entities in a proper way. This transparency enables the electorate to make informed decisions and
give proper weight to different speakers and messages. […] Our proposal simply protects the Company and its long term
shareholders from corporate decision makings that could result in a similar reputational risk. The proposal asks the Company
to disclose all of its political spending, including payments to trade associations and other tax exempt organizations for
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political purposes. This would bring our company in line with a growing number of leading companies including Aetna,
American Electric Power and Microsoft that support political disclosure and accountability and presents its information on
their website. The Company's board and its shareholders need complete disclosure to be -- to be fully able to evaluate the
political use of its corporate assets. Failure to do so could result in public embarrassments. Thus, we urge your support for this
critical governance reform. Thank you. REX TILLERSON: Thank you Ms. Miller. The board recommends a vote against this
proposal as outlined on pages 60 and 61 of the proxy statement.” [Fair Disclosure, 5/25/11]
EXXON WAS A TOP DONOR TO REPRESENTATIVE BARTON WHILE BARTON
HELPED EXXON RECEIVE CONCESSION IN THE CONSUMER PRODUCT
SAFETY IMPROVEMENT ACT
During 2008, Exxon Was A Top Donor To Rep. Barton For The First Time, Contributing More Than $38,000 To
His Campaign. According to Private Empire: ExxonMobil and American Power, “Public records collated by the Center for
Responsive Politics suggest that ExxonMobil took an especially strong interest in Barton during 2008, however. Barton
attracted donations during each two-year campaign cycle from many corporations, but in 2008 ExxonMobil was one of the
con­ gressman’s top three campaign donors for the only time in a decade. Com­ bining corporate, ExxonMobil Political
Action Committee, and individual employee contributions, ExxonMobil gave Barton $38,298 that year, more than 40 percent
more money than in any other cycle since 2000.” [Private Empire: ExxonMobil and American Power, pg. 494, 2012]
Following A Fight On Capitol Hill During Which Rep. Joe Barton Helped Exxon Receive Concessions In The
Consumer Product Safety Improvement Act, Exxon Employees Bundled More Than $10,000 To Barton In Two
Weeks. “President Bush signed the Consumer Product Safety Improvement Act into law on August 14, 2008. Its final
provisions on phthalates could not be described as a triumph for ExxonMobil-the consumer lobbyists had gotten more of
what they wanted than the corporation.Yet Joe Barton had hung in there and had won significant concessions. ExxonMobil
had a long record of persuading the Consumer Product Safety Commission to see phthalate regulation its way, and now the
future of DINP manufactur­ ing would be back before the commission, with ExxonMobil ‘s lobbyists once again involved in a
detailed review of phthalate science and risk management. The corporation apparently decided that Joe Barton deserved to be
rewarded for his summer of stubbornness. In the world of political campaign contributions, there is a technique referred to as
‘bundling,’ by which employees of the same company, law firm, or other organized group simultaneously make contributions
to the same political candidate, to create a booster effect with their money injection.[…] About a week later,on September 2,
2008, ExxonMobil chairman and chief executive Rex Tillerson led a second wave of giving to the Barton committee, with a
donation of $l ,500; Sara Tays, a public affairs executive, gave $350; Stephen Pryor, the president of ExxonMobil Chemical,
gave $350; Henry Hubble, in charge of the corporation’s Wall Street relations, gave $350; and Ken Cohen gave $500. Jeanne
Mitchell, ExxonMobil’s lobbyist in the House of Representatives, soon gave another $1,000. When the recorded contributions
stopped on October 2, about six weeks after the toy safety bill’s passage, Barton had received $10,150.” [Private Empire:
ExxonMobil and American Power, pg. 494, 2012]
Tax Reform
2011: TILLERSON SAID THE TAX CODE HINDERED COMPETITIVENESS AND
FAVORED A “VERY SIMPLE TAX CODE”
2011: Rex Tillerson Said Exxonmobil Favors “Comprehensive Tax Reform” Whereby The Corporate Tax Code
“Doesn’t Pick Winners And Losers,” But Treats Corporations Across All Industries Equally. According to the
Washington Ideas Forum, TILLERSON: “Broadly, for U.S. economic competitiveness and U.S. business competitiveness in
this country, clearly we have got to tackle the tax code. We have long been an advocate of comprehensive tax reform both on
the corporate side, and it is difficult to reform corporate tax without touching the personal because of the small business inner
linkage that exists there. So I think we have got to undertake a comprehensive tax reform. We and I think the business
community at large has said that we're ready to put everything on the table, and what we tell our counterparts and our
colleagues is look -- you can't have anything that you're going to say, ‘I’m going to stick this in my pocket, I’m never going to
give it up. You’ve got to put everything on the table, and all we're just looking for is a treatment that is equal across all
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industries, that doesn’t pick winners and losers, particularly in the energy space. You just can’t decide we like this but don't like
that. So we want equal treatment across the tax code.” [Rex Tillerson at the Washington Ideas Forum (via CSPAN), 10/6/11]
2011: Rex Tillerson Said The U.S. Tax Code Hinders Competitiveness And The Country’s Ability To Attract
Investment. According to the Washington Ideas Forum, BARTIROMO: “When you say competitive you’re saying,
competitive with the rest of the world?” TILLERSON: “Competitive with the rest of the world. Because, in effect that is
what the U.S. is doing, the U.S. is in competition for investment dollars, today it’s not very competitive. It is not competitive
with its own internal tax code; we are not particularly competitive internationally.” [Rex Tillerson at the Washington Ideas
Forum (via CSPAN), 10/6/11]
2011: Rex Tillerson Said Exxonmobil Would Like For There To Be “A Very Simple Tax Code.” According to the
Washington Ideas Forum, BARTIROMO: “Would you like to see then loopholes go away? What about lobbying?”
TILLERSON: “We would love to see a very simple tax code. My tax department will be sorry to hear that, but they are smart
people and I will find something else for them to do. a simplification that means eliminating all of the -- you have loopholes or
subsidies, what those really are, are patches to fix a defect in the tax code. What happened is we got to a point where
somebody said, ‘oh my gosh,’ we can't compete in manufacturing. We can't compete in some area globally so we put a patch in
it. And it looks like a loophole, but what it really is, is a patch to fix a problem that was recognized before that made us
uncompetitive. Rather than keep sticking patches on this thing, which makes it very complicated, let's clean all that up.” [Rex
Tillerson at the Washington Ideas Forum (via CSPAN), 10/6/11]
2011: TILLERSON CRITICIZED “LOOPHOLES OR SUBSIDIES” IN THE U.S. TAX
CODE
2011: Rex Tillerson Said “Loopholes Or Subsidies” Were “Patches” Put On The U.S. Tax Codes To Allow The
Country To Remain Economically Competitive. According to the Washington Ideas Forum, BARTIROMO: “Would you
like to see then loopholes go away? What about lobbying?” TILLERSON: “We would love to see a very simple tax code. My
tax department will be sorry to hear that, but they are smart people and I will find something else for them to do. a
simplification that means eliminating all of the -- you have loopholes or subsidies, what those really are, are patches to fix a
defect in the tax code. What happened is we got to a point where somebody said, ‘oh my gosh,’ we can't compete in
manufacturing. We can't compete in some area globally so we put a patch in it. And it looks like a loophole, but what it really
is, is a patch to fix a problem that was recognized before that made us uncompetitive. Rather than keep sticking patches on
this thing, which makes it very complicated, let's clean all that up.” [Rex Tillerson at the Washington Ideas Forum (via
CSPAN), 10/6/11]
Rex Tillerson Said He Would Be Willing To Give Up Tax Loopholes In Exchange For Comprehensive Tax Reform.
According to Platts Oilgram News, “Tillerson, who was interviewed at the event by CNBC anchor Maria Bartiromo, also said
he would be willing to relinquish various provisions of the federal tax code that benefit oil and natural gas companies in
exchange for comprehensive tax reform. ‘We, and I think the business community at large, has said we’re ready to put
everything on the table,’ Tillerson said. ‘All we’re looking for is a treatment that is equal across all industries, that doesn’t pick
winners and losers, particularly across the energy space. And get a corporate tax rate that is competitive and get an
international tax code that is also competitive.’” [Platts Oilgram News, 10/7/11]
Rex Tillerson On Tax Loopholes: “What Those Really Are, Are Patches To Fix A Defect In The Tax Code.”
According to Platts Oilgram News, “He said it is unfair to call tax provisions that benefit oil companies ‘loopholes.’ ‘What
those really are, are patches to fix a defect in the tax code,’ said Tillerson. ‘Rather than keep fixing patches on this thing, which
makes it very complicated, let’s clean all that up.’” [Platts Oilgram News, 10/7/11]
Regulations, Generally
TILLERSON CRITICIZED GOVERNMENT REGULATIONS; SAID INHIBITED
ENERGY EXPLORATION
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Rex Tillerson: “This Country Has A Propensity To Regulate. We Need To Protect Our Shareholders.” According to
Oil & Gas Journal, “Chairman Edward J. Markey (D-Mass.) convened the Jan. 20 hearing of the House Energy and
Commerce Committee’s Energy and Environment Subcommittee to examine energy market impacts of ExxonMobil Corp.’s
proposed $41 billion purchase of XTO Energy Corp. ‘This merger heralds a fundamental long-term shift in US energy
markets, and one that deserves our close attention,’ he said in his opening statement. But the discussion quickly turned to
hydraulic fracing because the proposed combination’s agreement includes a termination provision if Congress enacts
legislation making hydraulic fracing too costly and uneconomic. ‘This country has a propensity to regulate. We need to protect
our shareholders,’ ExxonMobil Chief Executive Officer Rex W. Tillerson told the subcommittee.” [Oil & Gas Journal,
2/1/10]
Rex Tillerson: Government Oversight, “Laws And Regulations, Sends A Clear Message Of The Government's
Expectations To All Participants And Helps Hold The Industry Accountable.” According to Federal News Service,
“First and foremost, government plays a critical role in helping prevent accidents by maintaining competent, stable oversight,
and consistent approach for all competitors participating in energy development in the United States. This role, in consistently
enforcing the laws and regulations, sends a clear message of the government's expectations to all participants and helps hold
the industry accountable. As the Deepwater Horizon incident unfolded we were also reminded of another important function
that must be played by the federal government in its role as on-scene commander of the Joint Unified Command: assuring the
responsible and timely coordination among the various local, state, and federal government entities playing a role in incident
response, and assisting the responsible parties in marshalling the required well-control and clean-up equipment.” [Federal
News Service, 9/22/10]
Tillerson Called For The Government And Private Industry To Respect The Rightful Role Of The Other, And
Criticized Policy Changes That Damaged Entrepreneurs And Innovation Due To Government’s “Mistrust In The
Private Sector.” According to Private Empire: ExxonMobil and American Power, “‘The ‘service we render’ and the ongoing
investments we make from our earnings are critical,’ Tillerson said. ‘Simply put, delivering energy in a safe, secure and
responsible manner improves the lives and opportunities of billions of people the world over. . . . ‘When government and
industry respect the rightful role of the other-and trust each other to faithfully fulfill their respective roles­ progress is possible.
. . . Deepening understanding and building trust between the public and private sectors is more important than ever. . . .
‘Service . . . responsible . . . respect . . . trust . . . faithfully . . .’ He seemed to wish for ExxonMobil to be considered as a kind
of public trust. He used the words ‘trust’ or ‘mistrust’ five times. ‘Often the policy changes that are most damaging to
entrepreneurs and innovation flow from a fundamental mistrust in the private sector,’ Tillerson declared. He concluded,
‘Leaders in the private and public sector both have a responsibility to challenge the basis and perceptions for the mistrust.’”
[Private Empire: ExxonMobil and American Power, pg. 599-600, 2012]
Rex Tillerson Laid Blame For Oil Prices On Political Regulation Inhibiting Access To Certain Areas The Might
Contain Oil And Gas. According to The New York Times, “Q.Globally, the picture for oil supplies looks pretty bleak.
Where are new supplies going to come from in the next five years? A. There is an access issue, in this country, and in many
countries around the world. The problem with the supply side of the equation is a problem of accessing the resources in the
ground so they can be explored and developed. That’s a political question where governments have made choices. This is
something where the United States has to look at the mirror first.” [The New York Times, 7/19/08]
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LABOR
Exxon’s Treatment of Workers
An International Labor Union For Oil And Gas Workers Issued A Complaint That An Exxon Subsidiary In Nigeria
Un-Lawfully Relied On “Non-Direct And Contract Workers,” And “Failing To Give Nigerian Nationals Long-Term
Job Opportunities.” According to Africa News, “The International Federation of Chemical, Energy, Mine and General
Workers’ Union (ICEM) has drawn the attention of the United States-based parent company of Exxon Mobil to the antilabour
activities of one of its subsidiaries-Mobil Producing Nigeria Unlimited (MPN) concerning the use of casual and
contract workers by MPN. ICEM is the predominant trade union federation in the world for oil and gas workers in both the
upstream and downstream sectors. ICEM, in a petition to the Chairman/Chief Executive Officer, ExxonMobil Corporation,
Texas, Mr. Rex Tillerson, expressed concern that MPN is un-lawfully engaging non-direct and contract workers to perform
key functions in Nigeria’s oil and gas industries thereby failing to give Nigerian nationals long-term job opportunities in their
work places.” [Africa News, 3/15/10]
Exxon Subsidiary Refused To Negotiate With The Labor Union When The Union First Protested Exxon’s
Practices. According to Africa News, “Petroleum and Natural Gas Senior Staff Association of Nigeria
(PENGASSAN) had last month shut down operations of Mobil offices across the country to draw attention to the
plight of many Nigerian workers made redundant by the MPN. Despite the protest, management of MPN had refused
to dialogue with the union. Given this scenario, ICEM decided to take up the matter and write to the parent
company on the proliferation of such employment by Mobil subsidiary in Nigeria. ICEM said it con-siders the refusal
by Mobil to negotiate with the union as a flagrant disregard of its social responsibility.” [Africa News, 3/15/10]
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LGBTQ
Section Overview:
While CEO of Exxon, Tillerson and the Exxon board repeatedly opposed stockholder resolutions calling on the company
to add sexual orientation to the company’s anti-discrimination policy.
While Tillerson was president of the Boy Scouts, he helped push for the organization to accept gay youths. However, the
organization maintained its ban on gay scout leaders.
Discrimination
EXXON VOTED DOWN RESOLUTIONS ADDING SEXUAL ORIENTATION TO
COMPANY’S ANTI-DISCRIMINATION POLICY
2006: Exxonmobil Opposed A Stockholder Resolution Calling On The Company To Add Sexual Orientation To Its
Employee Anti-Discrimination Policy, Saying The Company Already Prohibited All Forms Of Discrimination.
According to Newsday, “ExxonMobil Corp. stockholders yesterday voted down resolutions calling on the world's largest oil
company to change polices on gay rights, climate change and executive pay. A proposal to add sexual orientation to the
company's employee anti-discrimination policy received almost 35 percent support in balloting at the company's annual
shareholders meeting in Dallas. Two environmental initiatives and three resolutions on executive pay got less than 13 percent
of votes. The company opposed the measures, saying it spent $1 billion in the past two years to cut greenhouse-gas emissions
and already prohibited all forms of discrimination. Chief executive Rex Tillerson defended the pay of former CEO Lee
Raymond, saying Raymond deserved the $357 million retirement package he received in January because he delivered record
profits, and ‘led this company through a lot of different business environments. We are clearly positioned better than our
competitors, and you have to give him credit.’” [Newsday, 6/1/06]
2014: Exxon Voted Down A Proposal To “Prohibit Discrimination Against Gay And Lesbian Employees.” According
to the Dallas Morning News, “Shareholders introduced a proposal that Exxon set goals for reducing greenhouse gas
emissions. But the company's board opposed the move, and it was voted down by more than 75 percent of shareholders.
Proposals to limit Exxon board members' participation on other corporate boards and prohibit discrimination against gay and
lesbian employees also failed.” [Dallas Morning News, 5/29/14]
Boy Scouts
TILLERSON HELPED CONVINCE THE BOY SCOUTS TO ADMIT GAY
YOUTHS…
Tillerson Helped Convince The Boy Scouts Of America To Admit Gay Youths While Serving As President.
According to USA Today, “Tillerson, a huge advocate of the Boy Scouts of America, also helped convince the Boy Scouts of
America to admit gay youths while serving as the organization’s president several years ago from 2010 to 2012, the Dallas
Morning News reported in 2014. The Boy Scouts of America told USA TODAY in a statement that Tillerson remains ‘a longstanding,
valued member’ of the group and its national executive board. ‘He was instrumental in leading the organization
through an important period of growth and development, while upholding the long-standing traditions of character and good
citizenship that are essential to Scouting’s mission,’ the Boy Scouts said.” [USA Today, 12/5/16]
…BUT MAINTAINED THE BAN ON GAY SCOUT LEADERS
Rex Tillerson Maintained The Boy Scouts Of America’s Ban On Gay Scouts And Scout Leaders During His Tenure
As National President Of The Organization. According to the International Herald Tribune, “Mr. Tillerson, a former
Eagle Scout, was national president of the Boy Scouts of America from 2010 to 2011, while the Boy Scouts maintained its ban
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on gay scouts and scout leaders, and is a member of the Scouts’ national executive board, which voted this past week to lift the
ban on gay scouts (but not gay scout leaders). Eight years into his tenure as Exxon Mobil’s chief executive, the company’s
position hasn’t budged. No one doubts that if Mr. Tillerson threw his support behind the issue, the company’s policy would
change.” [International Herald Tribune, 5/25/13]
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TAXES
Section Overivew:
In 2012, Tillerson cosigned a letter dropping opposition to tax increases on the wealthiest Americans following the
expiration of Bush-era tax cuts.
Tillerson opposed efforts to impose a windfall profits tax on the oil industry and claimed that higher profits benefited
consumers as it resulted in Exxon paying a higher effective tax rate.
In a 2011 Congressional hearing, Rex Tillerson claimed oil companies deserved us tax subsidies for foreign taxes paid,
despite evidence that the taxes were merely royalties to foreign governments disguised as tax payments.
Tax Pledges
2012: TILLERSON DROPPED OPPOSITION TO RAISING TAXES ON
WEALTHIEST AMERICANS
Rex Tillerson Cosigned A Letter Signed By More Than 100 CEOs Dropping Opposition To Tax Increases On The
Wealthiest Americans. According to the New York Times, “A broad swath of the nation’s leading chief executives dropped
its opposition to tax increases on the wealthiest Americans on Tuesday, while the White House quietly pressed Wall Street
titans for their support as well. Before Tuesday’s about-face, the Business Roundtable had insisted that the White House
extend Bush-era tax cuts to taxpayers of all income brackets, but the executives’ resistance crumbled as pressure builds to find
a compromise for the fiscal impasse in Washington before the end of the year. […] Another more conservative executive who
signed a letter to Congress and the president from the Business Roundtable was Rex W. Tillerson, the chief executive of
Exxon. ‘‘Compromise will require Congress to agree on more revenue -- whether by increasing rates, eliminating deductions,
or some combination thereof -- and the administration to agree to larger, meaningful structural and benefit entitlement
reforms and spending reductions that are a fiscally responsible multiple of increased revenues,’’ said the letter, signed by more
than 100 chief executives.” [New York Times, 12/12/12]
Windfall Profits Tax
2005: TILLERSON OPPOSED INCREASING OIL AND GAS TAXES, DESPITE
RECORD PROFITS
2005: Rex Tillerson Defended The Oil And Gas Industry’s High Profits And Argued Against New Taxes On The
Industry. According to the Financial Post, “Record oil industry profitability has become such a big flashpoint that in the
U.S. executives of five major oil companies, including ExxonMobil, are to testify today before a joint session of the Senate
energy and commerce committees, which are exploring the possibility of new taxes on windfall profits. Mr. Tillerson defended
the industry's high profits, which he said are required to carry it when conditions are not as favourable in the cyclical business.
‘We invested US$15-billion last year, when we had prices of US$40 [a barrel] oil,’ he said. ‘In 1998, when we had US$10 oil, we
invested US$15-billion.’ When a tax was applied more than 20 years ago, the result was a reduction in the development of
domestic supplies and an increase in dependency on imported oil and natural gas, he said. ‘So, I don't think that's a policy
solution that anyone is going to find very attractive.’” [Financial Post, 11/9/05]
CLAIMED TAX WAS UNFAIR
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Rex Tillerson Said A Windfall Profits Tax On Oil Companies To Finance Research Into Alternative Fuels Was
Unfairly Targeting A Specific Industry And Would Be A Disaster. According to The New York Times, “Q.Would it be
wrong then for government to tax windfall profits to finance research into alternative fuels? A. Why would you want to tax
windfall profits to do so? Why target a specific industry when you are looking to raise revenue? The last time government
taxed windfall profits, it was a disaster. Why would you want to do so again? Any taxing program that targets a specific
industry is never a very good idea.” [The New York Times, 7/19/08]
CLAIMED TAX WAS “VERY DANGEROUS”
2006: Rex Tillerson Criticized A Proposed Tax Change On Oil Company Inventory Accounting, Saying It Was
Being Done “Willy-Nilly” And Was A “Backdoor Windfall Profits Tax.” “Senate Majority Leader Bill Frist (R-Tenn.)
yesterday withdrew a proposed tax change on oil company inventory accounting in the face of criticism from industry leaders.
The measure would have covered much of the cost of a proposed $100 ‘rebate’ to taxpayers for high gasoline prices. Frist said
there would be hearings later this year on the "pluses and minuses of the provision.’ Exxon Mobil Corp. chief executive Rex
W. Tillerson had criticized the measure, saying it was being done ‘willy-nilly’ and was a ‘backdoor windfall profits tax.’ He also
said that the end of some other tax breaks for U.S. exploration would have little to no effect on Exxon but might hurt smaller
domestic oil producers.” [Washington Post, 5/2/06]
2006: Rex Tillerson Called A Proposed Tax Change On Oil Company Inventory Accounting “Very Dangerous” And
“Very Poorly Thought Out.” According to Platts Oilgram News, “But ExxonMobil President Rex Tillerson, speaking at the
same forum, weighed in on another Congressional bill that attempts to exempt the oil industry from using the Last In First
Out accounting method to value oil inventories, calling it ‘very dangerous’ and ‘very poorly thought out.’ ‘It's extraordinary’
lawmakers would consider such a move, given the recent accounting changes to beef up accounting practices, Tillerson said.
He pointed out LIFO accounting is a ‘standard accounting method that is used across all industries.’ Tillerson described the
proposed change, estimated by lawmakers to boost taxes of major oil companies by $5 billion, as a ‘back-door windfall profits
tax.’” [Platts Oilgram News, 5/2/06]
Rex Tillerson Said A Windfalls Tax On Record Oil Company Profits Would Not Solve Any Real Problems. According
to ABC News, “CHARLES GIBSON (ABC NEWS) (Off-camera) Come back to Senator Obama. He's calling for a windfall
profits tax. $65 billion, five years. Oil companies, in his plan, pay it. And when the public sees the kind of profits that the oil
companies are making, isn't it fair that they wonder, why not? REX TILLERSON (CHAIRMAN & CEO Well, I guess the
question is what's that going to solve? Nowhere in a windfall profits tax do I see anything that addresses the problem. I
understand that may be popular with some people because of how they view our current-day profitability. But again, Charlie, I
think the question is are we going to have a serious debate about solving the long-term energy problem? Or are we just going
to look for short-term solutions again to make everybody feel better?” [ABC News, 8/13/08]
2006: TILLERSON JUSTIFIED HIGH PRICES ON CONSUMERS BY CLAIMING
EXXON PAID A HIGHER EFFECTIVE TAX RATE AS A RESULT OF PRICES
Tillerson Claimed Exxon Profits Benefited Consumers
When Asked About The Potential Implementation Of A Windfall Profits Tax, Rex Tillerson Argued Exxon’s Tax
Payments Represented Windfall Revenue For The Government. According to NBC’s Today Show, “LAUER: In
Washington, the backlash seems to be building. This is what the president said last week. "Americans understand and--and--by
and large that gas--or the pro--the price of crude oil is going up and that the prices are going up. What they don't want and will
not accept is manipulation of the market and neither will I. The Justice Department, The Federal Trade Commission are
investigating possible price gouging by oil companies. The Senate has asked the IRS to turn over some tax records of top oil
companies and some politicians are even discussing a windfall profits tax."[…] Mr. TILLERSON: Well, I--I don't--I guess I
never look at things that way, Matt. I think, you know, it's an important issue. It's complicated, it's hard to understand. In
terms of the examination of our tax records, that's fine. I think what they're going to find is that our--our profits from 2002 to
2005 went up threefold because of the prices. Our tax payments went up fourfold. So to the extent that we have a windfall
profit, the govern-ments have also had windfall taxes already.” [NBC’s Today Show, 5/3/06]
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Rex Tillerson Argued Exxon Paid A High Effective Tax Rate In Order To Justify Billions In Earnings For The Oil
Industry At The Same Time As High Prices For Consumers. According to CNBC/Dow Jones Business,
“BARTIROMO: Of course, you can understand the frustration, looking at the $35 billion in earnings at Exxonmobil last year
or the, you know, $11 billion in the three-month basis at a time that consumers are paying so much money for the price of oil.
What is your position on the windfall tax issue? TILLERSON: Well, we already are paying significantly higher taxes because of
the higher prices. Our tax payments around the world, last year, were almost $99 billion. So we pay a very high level of taxes
today. Our effective tax rate is over 41 percent. So as prices rise, governments do see increased revenues from our activities.
Now, we understand the concern people have about the price at the pump and the price of their energy or electricity and their
home heating oil. And for a lot of people that`s a -- that`s very difficult to manage and we understand that. Our response to
that is to do the things we know how to do to increase supply, increase the diversity of supply. And that means applying our
capabilities around the globe, applying the new technologies to get new sources of oil and natural gas supply that previously
we`ve not been able to bring to the market, invest heavily, invest wisely for the long term. And that`s what we`re doing. That`s
what our people are doing, all 85,000 of them, all around the world, 24 hours a day, 7 days a well, 365 days a year. That`s what
they`re focused on.” [CNBC/Dow Jones Business Video, 3/8/06]
But Tillerson Refused To Acknowledge Whether Exxon Had A Responsibility To Curb Profits As
Consumers Hurt
Rex Tillerson Refused To Say Whether Exxon Had A Responsibility To Curb Profits While Individual Consumers
Were Being Impacted By High Prices. According to NBC’s Today Show, “LAUER: You--you have a responsibility to your
shareholders. You're a public company. And I think in an-nouncing your profits last week you also announced a 32 cent per
share dividend. So you are meeting your responsibility to your shareholders. The question I have for you, Mr. Tillerson, is--
does a company like ExxonMobil have any responsibility to the other people in the general public at a time when individual
con-sumers are being hurt by gas prices, companies, entire industries? Airline industry, the--the automobile industry. Does
ExxonMobil have any responsibility to curb profits and help out those people? Mr. TILLERSON: Well, I think our
responsibility, Matt, is to ensure that people have the energy they need to go about their daily lives, to continue to support the
economy, the economic growth in this country and the world over. And to do that you have to have energy. Now I
understand that when people pull up to the pump, they don't like the price. It's creating a lot of problems for people's
household budgets. Your intro segment showed how people are having to deal with that. And I understand it's very difficult
for a lot of families. But the alternative of not having the gasoline at all or having long lines at the pump I don't think is one
that people find very attractive either.” [NBC’s Today Show, 5/3/06]
Energy Subsidies
2007: TILLERSON SUPPORTED RESEARCH AND DEVELOPMENT TAX CREDITS
Rex Tillerson Called For Tax Credits Or “Favorable Tax Treatments” To Incentivize Research And Development
Of New Energy Technologies In Light Of Government Regulations On The Industry. According to the Council on
Foreign Relations, “MS. WHITMAN: You talked about the importance of technology again on a number of different
occasions. To what extent do you think that government regulation or the prospect of government regulation has helped spur
focus on R&D for new technology?[…] TILLERSON: […] So it is important, I think, that there be support for ongoing
research on energy issues, ongoing research on environmental issues. And to the extent the government is able to support that
through my preferred means or through tax credits or tax -- favorable tax treatment or on research, so that you also allow the
competitiveness of the research activities to stay in the marketplace, because various players will emphasize different
technologies as they see a business opportunity somewhere out there in the future. That stimulates the innovation and the
creativity that you need to make those discoveries.” [Council on Foreign Relations, 3/9/07]
ROYALTY FEES
Rex Tillerson Criticized President Obama’s Proposal To Raise Royalty Fees And Impose New Taxes On Oil
Companies. According to CNBC, “BARTIROMO: Let me ask you about the new administration, Mr. Tillerson. President
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Obama, as you know, seeking to raise at least $31 1/2 billion over 10 years by raising royalty fees, imposing new taxes on oil
companies, affecting, obviously, your company, Chevron, ConocoPhillips, among others. Have you had a conversation with
the administration about this? What kind of an impact are you expecting from this? Mr. TILLERSON: Well, I've not had a
conversation specifically about the president's proposal because it is fairly new just here in the last few days. I have met with
the president and talked more generally about the importance of the domestic industry and the importance of oil and natural
gas as part of securing America's energy future. And so we have talked in general about that. I think in terms of the tax
proposal, as I have best been able to read and understand it, obviously in my view I don't think it's positive for the American
consumer or for energy security in the future.” [CNBC’s Wall Street Journal Report, 3/8/09]
TAX BREAKS AND SUBSIDIES FOR OIL INDUSTRY
2011: Tillerson Called For The U.S. To Provide Energy Industry With A Foreign Tax Credit, Despite
Evidence Showing The Royalties To Foreign Governments Were Often Disguised As Tax Payments.
Rex Tillerson Claimed Oil Companies Deserved US Tax Subsidies For Foreign Taxes Paid, Despite Evidence That
The Taxes Were Merely Royalties To Foreign Governments Disguised As Tax Payments. According to Federal News
Service, “MENENDEZ: Let me ask Mr. Tillerson. I've heard a vigorous defense of preserving tax rules that allow oil
companies to disguise foreign royalty payments as foreign tax payments and therefore get a U.S. foreign tax credit. Now, why
should taxpayers in the United States these subsidizing your drilling in Indonesia, where royalty payments are hidden as a 44
percent tax on oil companies? Why should U.S. taxpayers be in essence subsidizing the foreign production of oil?
TILLERSON: They're not. MENENDEZ: How are they not, when in fact that those are royalty payments. TILLERSON:
They're legitimate income taxes paid to the government of Indonesia. As I said in my statement, one of the ways our industry
is treated differently on the foreign tax code than others is that we must prove that these are income tax payments and not
royalty payments. So the Internal Revenue Service, which we house 35 auditors 365 days a year in our offices, look at those
very thoroughly. And we must prove to them that in fact they represent income taxes and not royal-ties. MENENDEZ:
Well, clearly, if you pay as a structure taxes to a foreign country, the IRS doesn't have a lot of opportunity to dispute that. But
if, in fact, you devise your agreements in such a way that having the payment of royalties be a tax, you get a deduction here in
the United States. And that simply means U.S. taxpayers are subsidizing.” [Sen. Max Baucus Holds A Hearing On Tax
Incentives And Rising Energy Prices, 5/12/11]
Tillerson Opposed Efforts To Repeal Tax Subsidies For The Oil Industry
2011: Tillerson Claimed Repealing Tax Subsidies For Just Oil Industry Was “Discriminatory”
Rex Tillerson Said Proposals To Eliminate $2 Billion In Tax Breaks For Oil Companies Was “Misinformed And
Discriminatory.” According to the New York Times, “With gas at $4 a gallon, oil at $100 a barrel and profits at near-record
levels, it is hard to feel sympathy for the oil industry. Yet sympathy is what the C.E.O.’s of the five biggest companies asked
for when they appeared Thursday before a Senate hearing on a Democratic proposal to eliminate about $2 billion in tax breaks
for the Big Five. Exxon’s Rex Tillerson called the proposal ‘misinformed and discriminatory.’ ConocoPhillips’s James Mulva,
in a letter, called the idea ‘un-American’ be-cause it would supposedly cost American jobs, raise consumer prices and
discourage investment -- a position he reasserted during the hearings.” [New York Times, 5/15/11]
Rex Tillerson Said Tax Subsidies Should Be Repealed For All Industries Or No Industries, Not Just Oil And
Gas Companies. According to the New York Times, “Rex W. Tillerson, chief executive of Exxon Mobil, said that the
provisions, such as a tax deduction for certain types of manufacturing, were not ‘‘special incentives, preferences or
subsidies for oil and gas, but rather standard deductions applied across all businesses in the United States.’’ He said that
eliminating the provision just for the oil industry would be ‘‘misinformed and discriminatory.’’ Under questioning from
Senator Max Baucus, Democrat of Montana, the panel’s chairman, Mr. Tillerson said that he would support repeal of the
manufacturing tax credit and other tax incentives, as long as all businesses were treated the same. ‘‘Repeal it for everybody,
gone,’’ he said. ‘‘Everything for everybody everywhere ought to be on the table.’” [New York Times, 5/13/11]
Rex Tillerson Said Proposed Changes Reducing Tax Breaks To Oil Corporations Were “Misinformed And
Discriminatory.” According to The Christian Science Monitor, “At issue is whether the Big Five oil companies - which to-
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gether made more than $35 billion in profits in the first quarter of 2011 - need help from taxpayers, espe-cially with oil selling
for more than $100 a barrel. […] Legislation pending in the Senate would cut tax breaks to the top oil producers by $21 billion
over 10 years - and use the savings to reduce the national deficit. Industry CEOs say such a move would be discriminatory and
would hurt US jobs and their ability to compete for resources with giant, state-owned rivals. The CEOs represented
companies ranging from Exxon Mobil, which made $69 billion in profit in the quarter ending March 31, to BP America, which
is still recovering from the Gulf oil spill. Others included Chevron, Conoco Philips, and the US branch of Royal Dutch Shell.
The CEOs asserted that the proposed tax changes would discourage domestic production, cut jobs, and raise the costs of
energy to American consumers. ‘It is not simply that [the proposed tax chang-es] are misinformed and discriminatory. They
are counterproductive,’ said Exxon Mobil CEO Rex Tillerson. The way to reduce energy prices and raise revenue for
government is to lift restrictions on developing ‘our nation’s enormous untapped energy supplies,’ he added.” [The Christian
Science Monitor, 5/12/11]
2011: Tillerson Claimed Repealing Tax Breaks For Oil Companies Was “Counterproductive” And Undermine U.S. Competitiveness
Rex Tillerson Said Senate Plans Targeting $21 Billion In Tax Breaks For Oil Companies Were “Counterproductive.”
According to the National Post, “Exxon Mobil Corp. chief executive Rex Tillerson and four counterparts defended US$21-
billion in U.S. tax breaks Democrats are seeking to recapture to reduce the federal deficit. Executives from Exxon, Royal
Dutch Shell PLC, Chevron Corp., ConocoPhillips Ltd. and BP PLC said Thursday costs may rise and gasoline prices increase
if Democrats succeed in eliminating the benefits. The plan is ‘counterproductive,’ Mr. Tillerson told the Senate finance
committee at a hearing in Washing-ton. Senate Democrats are proposing to raise oil and gas taxes by about US$2-billion a year
for 10 years, arguing widening deficits are a threat to the economy and sacrifice is required. College students are giving up
federal help, and so should the companies, said Senator Charles Schumer, a New York Democrat.” [National Post, 5/13/11]
Rex Tillerson Said That Repealing Tax Breaks For Oil Companies Would Be “Undermining U.S. Competitiveness.”
“Rex Tillerson, the CEO of ExxonMobil, told the Senate Finance Committee that several bills that would eliminate tax breaks
for the industry failed to address the issues of oil prices and taxes in an ‘open, honest and factual way.’ Eliminating credits such
as the Section 199 domestic production deduction and the de-duction for intangible drilling costs are ‘misinformed and
discriminatory,’ Tillerson said, adding that they are also ‘counterproductive.’ ‘By undermining US competitiveness, they would
discourage future investment in energy projects’ and ‘do nothing to help reduce prices,’ he said.” [Platts Oilgram News,
5/13/11]
Rex Tillerson Complained That U.S. Government Regulations And Withdrawing Of Generous Tax Subsidies For
Oil Companies Was Impacting The Industries Competitiveness Globally. According to Fox News, “NEIL CAVUTO:
CEO Rex Tillerson telling me moments ago that taking away tax breaks and subsidies is one thing. Blasting the industry, his
company, for contributing to every environmental ill, well, that is quite another. (BEGIN VIDEOTAPE) REX
TILLERSON, CHAIRMAN & CEO, EXXONMOBIL: Well, I know that the -- certainly, the government is looking for ways
to generate revenue because of the -- all of the demands that they see coming in the future. But, quite frankly, energy is so vital
to economic performance and economic security in the future, that I would hope they would consider the important role that
the domestic industry plays in this country, oil and natural gas, but also the important role that the industry plays being a global
participant in the oil and natural gas supply to the world and to the United States. You know, we`re not going to achieve
energy security in the U.S. if -- unless we have global energy security. And, so, I think the industry`s participation here at
home, but also abroad is important. So, any of these -- any steps which cause the industry to be less competitive overseas or
causes the cost of development here at home to go up, ultimately, in my view, does not serve the interests of the American
people or the consumer well.” [Fox News’ Your World with Neil Cavuto, 3/5/09]
Tillerson Claimed Eliminating Tax Breaks Would Discourage Investment
Rex Tillerson Said That Eliminating Tax Breaks For Oil Companies Could Discourage Them From Investing.
According to the Washington Post, “OIL COMPANIES enjoy a series of exceptions from federal taxes. Democrats want to
rescind some of those exceptions, saving about $21 billion over 10 years, and put that money toward deficit reduction. So at a
Senate Finance Committee hearing on Thursday, lawmakers asked the leaders of five large oil companies to explain why
Congress shouldn’t take away their tax breaks. Rex Tillerson, chairman and chief executive of Exxon-Mobil, argued that firms
have to make very large investments to get at oil that is increasingly difficult to extract. Changing those tax provisions
concerning production would have little effect on how much companies produce now. Changes, however, might alter
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calculations about whether to make some of those investments later. But Sen. Olympia J. Snowe (R-Maine) pointed out that,
particularly with the price of oil above $80 a barrel, the potential for profit would overwhelm any signal that such small
changes in tax policy would send to oil companies. So, she persisted, what are taxpayers getting for their forgone revenue?”
[Washington Post, 5/15/11]
Rex Tillerson Said That Eliminating Tax Breaks For Oil Companies “Would Discourage Future Investment In
Energy Projects.” According to Inside Energy With Federal Lands, “‘Energy incentives should help us build the energy
future we want to see -- not pad oil company profits,’ Baucus said during the hearing. But the executives fought back,
saying that targeting oil companies over their tax incentives, or only the five biggest oil companies, as some have
proposed, is unfair and ineffective. ExxonMobil CEO Rex Tillerson said eliminating tax incentives ‘would discourage
future investment in energy projects’ and ‘do nothing to help reduce prices.’ Similarly, Marvin Odum, president of Shell
US, told the committee that ‘no one person, organization or in-dustry can set the price for crude oil.’ Tillerson and Odum
testified to the committee along with the heads of BP, Chevron and ConocoPhillips.” [Inside Energy With Federal Lands,
5/16/11]
2011: Tillerson Threatened To Move ExxonMobil Investment Overseas If Oil And Gas Subsidies Were Eliminated
Rex Tillerson Told The Senate Finance Committee That Eliminating Tax Subsidies Could Cause ExxonMobil To
Move Business Investments to Other Countries. Washington Post, “Noting the deep cuts in a budget proposed by Rep.
Paul Ryan (R-Wis.) and meetings with Obama on how to narrow the deficit, Rockefeller said: “All kinds of things are going to
take enormous hits, while you’re not. We’re kind of terrified up here.” Exxon’s Tillerson replied: “I want to assure you I’m not
out of touch.” He said that between 2005 and 2010, Exxon Mobil paid an average of 32 percent in U.S. income taxes and that
a tax increase would alter investment decisions, possibly pushing investments to other nations. Tax experts noted that the tax
rate was based on income already reduced by deductions and credits. Tillerson said that if Congress wanted to eliminate the
biggest of the tax measures, one that effectively cuts the corporate income tax rate by two to three percentage points, it should
do so for all industries, not just the oil industry.” [Washington Post, 5/13/11]
Rex Tillerson: “Arbitrarily Punishing Five U.S. Oil And Gas Companies By Raising Their Taxes Would
Generate Far Less Government Revenue Than If We Were Allowed To Compete And Produce Our Nation’s
Own Resources.” According to the Washington Times, “Rex Tillerson, chairman and CEO of Exxon Mobil Corp., the
world’s largest energy company, disagreed with the Democrats’ equation. “Arbitrarily punishing five U.S. oil and gas
companies by raising their taxes would generate far less government revenue than if we were allowed to compete and
produce our nation’s own resources,” he said.” [Washington Times, 5/13/11]
Rex Tillerson Threatened That Democrats Proposed Tax Increases On Oil And Gas Production Would Force
Companies To Move More Operations Overseas. According to Federal News Service, “HATCH: Well, thank you, Mr.
Chairman. Now this question is for the entire panel. I'd like it answered yes or no if you can, or you can certainly add to it if
you want. As you know, President Obama and numerous congressional Democrats have proposed raising taxes on United
States oil and gas production. However, an Associated Press article from Tuesday about Senator Menendez's bill to increase
taxes on oil and gas stated, quote, "Menendez acknowledged that the legislation slated for a vote next week won't do anything
about gas prices exceeding $4 a gallon in many places," unquote. Now with rising taxes on United States oil and gas
production, will raising taxes on oil and gas production lower the price of gas at the pump? And are you aware of any good or
service that has become expensive as a result of being taxed more heavily? […]TILLERSON: It's going to have little
immediate effect. But the effect will come in the months and years to come, and in terms of raising the cost of development
here. And if a loss of -- like 199 deductions puts more pressure on refining margins, refineries already lose money most
quarters. So if we lose more refinery capacity in the U.S., it means more imported product rather than refining product here.
[Sen. Max Baucus Holds A Hearing On Tax Incentives And Rising Energy Prices, 5/12/11]
2012: Tillerson Claimed the Oil And Gas Industry Was “Losing Our Shirts” And Making “No Money.”
2012: Rex Tillerson On Low Gas Prices: “We’re Losing Our Shirts Today…We’re Making No Money. It’s All In The
Red.” According to Natural Gas Week, “When Exxon Mobil says it’s suffering from low gas prices, you know the industry is
in serious trouble. ‘We are losing our shirts today,’ Exxon Chief Executive Rex Tillerson reportedly said in a recent talk before
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the Council on Foreign Relations (CFR) in New York City. ‘We’re making no money. It’s all in the red.’ That’s much more
pessimistic in tone, and perhaps more honest, than the picture painted at a press briefing following Exxon’s annual
shareholder meeting in late May in which Tillerson acknowledged the impact that low gas prices are having on Exxon’s
bottom line.” [Natural Gas Week, 7/9/12]
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