Exxon Mobil NOT Investing in Alternative Energy

My first reaction to this article, from Fortune, about Exxon Mobil not investing in alternative energy was to think, as some critics mentioned in the article do, that CEO Rex Tillerson and Exxon Mobil has a short-term (or not long enough) view of their business and that it's a mistake. Tillerson won't be around long enough to be hurt by such a view.

Of course, I think it's extrememly important for a company the size Exxon Mobil to make the move to investing in alternative energy. Without companies like them on board, it makes it harder for the technologies to become more mainstream and more affordable. That being said, the way business is structured, can he be blamed for this thinking? In other words, in the short-term, he may be hurting Exxon Mobil's profits and isn't that against everything his job description calls for? Taking the longer term perspective, should he even be blamed for not investing in the research and development? I've said before in this blog, my thought about Exxon Mobil is that they'll sit back and earn their hefty profits without making any investments. When the time comes that a technology looks promising and profitable, Exxon Mobil will use their loads of cash and buy up a few companies. They don't have to "waste" their money now (of course, I believe if they threw their money into the R&D, something viable would come quicker), but can sit back, profit as they traditionally have, and invest when there is more return guaranteed on their investment.

It's easy for me to make Tillerson out as a bad guy. But as business rules as they are where there is no cost applied to companies who contribute to global warming or pollution, CEO's are really discouraged from making the responsible choice for the world and are encouraged to make the responsbile one for their company's shareholders.

Tillerson may not be a bad guy, but he certainly will never be a "profile in courage".

Technology Allows for More Oil Extraction

New technologies, such as one that pumps in carbon dioxide into oil wells, allow for more oil to be extracted. As a result of this added efficiency, there is apparently a great deal more oil out there to be had. This article from today's New York Times talks of debate between those who think we've either seen the peak of oil or it is coming soon and those who think there's much more on the way. The article touches on what I feel is a much more important point - the fact that global warming is occuring (can I yet say it is a 'fact'???) and that even if oil supply was infinite, we need to increase our investments into alternatives to oil.

It's important, of course, to hear news such as this. What it can't mean is that there will be less investment into finding alternative ways to power our vehicles.

Exxon Mobil Changing Its Tune?

Fortune published this online piece, "Exxon Mobil greens up its act" today about how Exxon Mobil is trying to reach out to its critics around the issue of climate change. After years of trying to distort the science of global warming and funding think tanks that did the same, they have begun to meet with leaders of environmental groups and NGOs that deal with social issues like human rights.

The article does mention the public relations nightmare they've had to deal with due to their past behavior. Such behavior, its mentioned, helped to cause more press for their support of the think tanks over their support "for a $225 million Global Climate and Energy Project at Stanford, which is researching alternative energy and transportation fuels."

The article also points out that Exxon Mobil is probably reacting to the change in political leadership in both houses of Congress and to the leadership of some of the other Fortune 500 companies who are calling for a cap on greenhouse gas emissions.
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On the sidebar in the article, you will find a link to "What's next in energy: Vinod Khosla" (Khosla's a venture capitalist) concerning his thoughts on the future of energy (he's betting on cellulosic ethanol and solar thermal energy).