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ExxonMobil shareholders defeat dissidents CEO Lee Raymond touts company’s environmental record at annual meeting May 28, says oil and gas are way of the future Petroleum News Houston Staff
ExxonMobil shareholders overwhelmingly defeated proposals from critics who believe the cash-rich energy giant isn’t doing enough to support causes that run the gamut from human rights to fighting climate change.
Dissident shareholders at the company’s annual meeting May 28 in Dallas, Texas, also were unsuccessful in changing the makeup of the board of directors and separating the positions of board chairman and chief executive officer, both jobs which are currently held by legendary oilman Lee Raymond.
Raymond, who monitored the contentious three-hour meeting, was obviously prepared for the onslaught, particularly on the issue of climate change, in a lengthy speech he delivered before opening the floor to questions and comments.
“In addition to our efforts to develop technologies that address the long-term risks of climate change,” he declared, “we are taking steps today to improve efficiency and reduce greenhouse gas emissions.”
He said ExxonMobil investments in co-generation facilities alone have reduced emissions up to 50 percent in some cases, noting that co-generation now accounts for more than 90 percent of the company’s generating capacity at its chemical and refining facilities.
“As a result, carbon dioxide emissions have been reduced by almost 7 million tons a year from what they would otherwise have been,” Raymond said.
He said that ExxonMobil is “collaborating” with automobile manufacturers on developing technologies for next-generation internal combustion systems, hybrid vehicles, fuel cell systems and emissions controls.
Raymond also reminded shareholders that ExxonMobil last year committed $100 million “in a groundbreaking research effort” at Stanford University.
“We believe the only practical way to address the long-term risk of climate change is through the development of commercially viable, next-generation technologies that can be applied worldwide,” he said. No substitute for oil and gas However, Raymond made it clear that he believes there is no practical substitute for oil and gas. He said the prospects for growth in the hydroelectric and nuclear industries are limited.
ExxonMobil does expect solar and wind energy to grow rapidly, he said, but only because of government policies and incentives, not because of market economics. He said solar power alone can cost from $100 to $250 per barrel of oil equivalent.
He also said that starting from a low base today, wind and solar are unlikely to exceed a 1 percent share of the world’s energy needs by 2020, even with double-digit growth rates.
“As a result, we believe oil and gas, which represent about 60 percent of energy supplies today, will remain the dominant energy sources,” Raymond said.
Still, Raymond said producing enough oil and gas to meet future demand would be challenging for industry given the 5 percent annual decline of existing fields. He projected a supply gap of nearly 100 million barrels of oil equivalent barrels by 2015, or close to 80 percent of today’s production levels.
“Undeveloped and undiscovered oil and gas fields should provide a sufficient resource base to meet projected demand, at least through the middle of this century,” Raymond said. “However, the industry must have access to these resources. Effective regulatory and legal frameworks to support industry investment in countries with promising resources are essential.”
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