IRVING, Texas, Feb. 15 /PRNewswire/ -- ExxonMobil (NYSE: XOM) Chairman Lee
Raymond and Vice Chairman Lou Noto predicted today that oil industry
technology can and will help deliver both the economic progress and a clean,
safe environment demanded by an inter-dependent world population.
Addressing separate audiences in London and Tokyo, the executives
expressed optimism that the new technology employed today -- and future
advances just around the corner -- will continue to produce an amazing array
of cleaner and more efficient fuels at prices that can sustain world economic
growth.
Raymond said while the industry may be relatively old, it's also as up-to-
date as the latest satellites or the largest computers used in exploration or
the leading edge technology used to produce cleaner and more efficient
lubricants.
"There is no question that operating deepwater offshore producing
platforms in the hostile and unforgiving environment of the North Sea is every
bit the technological marvel as any space project," Raymond added. He listed
a number of high-tech advances from the latest 3-D visualization techniques
used in exploration to the newest metallocene catalysts that are changing the
world of plastics by creating molecules so perfect that manufacturers can
design major improvements in everything from diapers to food packaging.
The upshot of this technological revolution, Raymond told the Institute of
Petroleum in London, is that oil use today is much higher than was forecast
some years back. "For example, 15 years ago, the International Energy Agency
projected free world oil usage of 54 million barrels a day, but the actual
number will be about 67 million barrels a day this year -- 25 percent higher.
"And looking into the future, we see oil consumption in 2020 being some 50
percent higher than was forecast 15 years ago. Natural gas consumption is
expected to grow even more rapidly with coal and nuclear having much lower
shares of the energy mix than was predicted in 1985," Raymond said.
Raymond emphasized that technological change has been a key factor in
maintaining oil and natural gas as the world's energy mainstays, and that
means that continuing research and development will have to be a core function
of oil companies.
Raymond supported the future need for attractive alternative fuels but
noted that, with today's developments, renewables like wind, solar, and
biomass can be players only in niche markets, where they don't have to compete
with abundant, clean-burning, affordable and efficient fossil fuels.
"Photovoltaics appear to have potential, but costs must be reduced
significantly and performance dramatically improved to be competitive. It
would take a dramatic breakthrough in technology.
"Nor do we expect battery and fuel cell cars to become dominant in the
next 20 years if the free market is left to decide. No one with today's
technology has produced a battery with anything close to acceptable
performance for wide-scale use. And as for fuel cells using hydrogen, safety
remains a serious, unresolved issue as does the lack of infrastructure," he
said.
Barring a major technological breakthrough, Raymond stated that oil and
natural gas appear to be the energy sources the world will depend on for the
foreseeable future. "And this brings me to two additional reasons why I'm
optimistic about our industry's role in the new century," he said. "Thanks in
part to technology, we're in a good position to fulfill two fundamental human
aspirations -- economic progress and a safe, healthy environment."
Raymond noted that the industry's few failures get the headlines because
they are the exception, not the rule. "We want and strive for clean air, soil
and water for our children, our grandchildren and ourselves," he said.
Raymond added that the history of major industrial economies tells us that
we can have both economic and environmental progress at the same time. Since
1970, emissions of major air pollutants in these countries have decreased
substantially -- despite increases in population, industrial development and
vehicle miles traveled.
Over this same period, the oil industry has produced progressively
cleaner-burning motor fuels on both sides of the Atlantic. "With new fuels
from the petroleum industry and new technology from the auto industry, we've
reduced tailpipe emissions from new cars by 95 percent, and we'll make further
progress in the years ahead," Raymond said.
Raymond added that ExxonMobil and its competitors want the same thing as
responsible environmentalists -- "because we are responsible
environmentalists. And we have a great, unacknowledged environmental record
to prove it."
In that vein, Raymond said ExxonMobil has studied climate change for
nearly two decades, since well before it became as broadly discussed as it is
today. "ExxonMobil recognizes the potential for climate change caused by
elevated levels of CO2 in the atmosphere is a legitimate concern and reducing
the scientific uncertainties is important," he stated.
Lou Noto, speaking in Tokyo before the Institute of Energy Economics'
Symposium on Pacific Energy Conservation, further emphasized Raymond's
comments, stating that the best approach to the global climate change issue is
one that recognizes both the importance of sustaining economic growth and
improving the environment.
Noto said economic studies support that conclusion. He cited a study at
Princeton University that found after an initial decline, a nation's
environment improved as its economy grew. "In most cases, the turning point
occurs before a country reaches annual per capita income of approximately
$12,000 -- about the level in Taiwan."
The ExxonMobil vice chairman added, "We also need to recognize that
resolving the global climate change question will require a dedicated,
forward-looking approach supported by sound science and cost-benefit analysis.
If changes are necessary, they must be carried out on a global basis,
including the developing as well as the developed nations."
ExxonMobil is taking actions now to address the issue, including research,
state-of-the-art technology development and improvements in the efficiency of
its operations. The company also is continuing to promote active public
discussion and debate.
In order to improve scientific understanding of climate change, Noto said
ExxonMobil has funded studies at numerous major research centers, such as the
Massachusetts Institute of Technology, Carnegie Mellon University, Stanford
Energy Modeling Forum, the Hadley Center for Climate Prediction and Research,
and the International Energy Agency's Greenhouse Gas R&D Programme. In
addition, the company is supporting reforestation programs as a natural way to
absorb CO2 and provide other environmental benefits.
Noto stated that ExxonMobil also is playing a leading role in research to
develop and apply technologies that reduce energy use and emissions.
One example is the company's partnerships with General Motors and Ford to
develop fossil fuel-powered fuel cells for automobiles. "We've also formed a
long-term alliance with Toyota to develop environmentally friendly, next-
generation automotive systems and fuels with significantly lower emissions and
improved efficiency," he said.
Noto added, "We're taking many other practical, economic steps to use
fossil fuels more efficiently and thereby reduce emissions. For example,
ExxonMobil refineries and chemical plants have improved energy efficiency
significantly over the last 25 years. Our objective is to continue to be an
industry leader in energy utilization and efficiency."
Saying those are just a few of the steps ExxonMobil is taking to address
the issue of responsible environmentalism, Noto concluded, "We believe that
this kind of approach will allow us both to protect our environment and to
sustain economic prosperity. The whole history of our industry has been a
demonstration that we can achieve both goals."
SOURCE Exxon Mobil Corporation
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