Rex Tillerson asked me to respond to your recent letter regarding ExxonMobil's position and activities relating to greenhouse gas emissions.
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- Edwin Blair
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1 Exxon Mobil Corporation Kenneth P. Cohen 5959 Las Colinas Boulevard Vice President Irving, Texas Public Affairs November 27, 2006 The Honorable Olympia J. Snowe United States Senator 154 Russell Senate Office Building Washington, DC The Honorable John D. Rockefeller, IV United States Senator 531 Hart Senate Office Building Washington, DC Dear Senators Snowe and Rockefeller: Rex Tillerson asked me to respond to your recent letter regarding ExxonMobil's position and activities relating to greenhouse gas emissions. As the world's largest non-government energy company, we seek to play a positive and constructive role in the dialogue about the future of energy - one which is grounded in fact and intent on finding viable solutions. Your letter provides us with an opportunity to clarify ExxonMobil's demonstrated commitment to promote research and development of low- and no-carbon energy technologies, mitigate greenhouse gas emissions in a cost-effective manner and increase scientific understanding of this important issue. Given the central role that fossil fuels play in providing 80 percent of the world's energy to sustain a growing global economy, the issues of global economic development, future energy supply, and the risk of climate change are closely linked. In light of the interests that governments, our shareholders and customers, and the public at large have on global climate change and future energy trends, earlier this year we published the enclosed report, entitled Tomorrow s Energy: A Perspective on Energy Trends, Greenhouse Gas Emissions and Future Energy Options. In your letter, you specifically recommended that ExxonMobil "publicly acknowledge both the reality of climate change and the role of humans in causing or exacerbating it." In fact, we have done so, many times. Greenhouse gas emissions are one of the factors that contribute to climate change. I would ask you to read Section 2 of our Tomorrow's Energy report. This section briefly reviews what we know about the science of global climate change, including observations of the world s warming since the mid-1800s, and the 30 percent increase in the atmospheric concentration of carbon dioxide and a doubling of methane levels. Our report states:
2 - 2 - We recognize that the accumulation of greenhouse gases in the Earth s atmosphere poses risks that may prove significant for society and ecosystems.human activities have contributed to these increased concentrations [of greenhouse gases], mainly through the combustion of fossil fuels for energy use; land use changes (especially deforestation); and agricultural, animal husbandry and waste-disposal practices.even with many scientific uncertainties, the risk that greenhouse gas emissions may have serious impacts justifies taking action. ExxonMobil has undertaken climate change research for 25 years and our work has produced more than 40 papers in peer-reviewed literature. We attach the same level of rigor to this work as we do to all of our scientific and technological activities. Our company's track record in science and technology is unrivaled within our industry, with inventions ranging from 3D seismic exploration to low-sulfur fuel technologies. We employ more than 14,000 scientists and engineers, including 2,000 PhD's. Our scientists serve on the United Nations Intergovernmental Panel on Climate Change (IPCC) and numerous related scientific bodies. In addition, we have conducted and supported scientific, economic and technological research on climate change for more than two decades. ExxonMobil has supported major projects at such institutions as the Massachusetts Institute of Technology, Stanford University, the Australian Bureau of Agricultural Resource Economics, Battelle Pacific Northwest Laboratory, Princeton University, Charles River Associates, the Hadley Centre for Climate Prediction, the International Energy Agency Greenhouse Gas R&D Programme, Yale University, The University of Texas, Carnegie Mellon University, and the Lamont Doherty Earth Observatory at Columbia University. In your letter, you inquired about ExxonMobil's work on "proactive strategies to promote energy efficiency... to accelerate innovation to responsibly extend the useful life of our fossil fuel reserves, and to foster greater understanding of the necessity of action on a truly global scale...". You will be pleased to know that we have explicitly endorsed those principles and are implementing a wide range of actions to advance them. Again, in the Tomorrow's Energy report, we state our support of the following "Key Objectives for Long-Term Climate Policy": Promote global participation; Encourage more rapid use of existing efficient technologies (in both developed and developing countries); Stimulate research and development to create innovative, affordable, lower greenhouse gas technologies sooner; Address climate risks in the context of developing country priorities: development, poverty eradication, access to energy; and Continue scientific research to assess risks and pace policy response. You also recommended that ExxonMobil "devote at least some... money to global remediation efforts." ExxonMobil is undertaking a wide range of actions to mitigate greenhouse gas emissions today, even as we support the development of advanced energy technologies with the potential to significantly reduce future emissions. These include:
3 - 3 - Greenhouse Gas Emissions Reporting. ExxonMobil is committed to consistent, comprehensive annual reporting of our greenhouse gas emissions, which we began in 1998 with respect to our own operations and have since expanded to include our equity interests in operations in which we share ownership. ExxonMobil encouraged and supported the development of cost-effective, reliable, industry-endorsed methods to measure and report greenhouse gas emissions from the petroleum industry (through the American Petroleum Institute and International Petroleum Industry Environmental Conservation Association). We also support the enactment of federal legislation in the United States to mandate the reporting of annual greenhouse gas inventories to the U. S. Department of Energy. Our latest Corporate Citizenship Report (also enclosed) describes how the protocol we developed to comply with the European Union Emissions Trading System in the Netherlands has been made available through the EU website as a template for others to use. Global Climate and Energy Project at Stanford University. In an effort to apply the combined resources of industry and academia to the challenge of identifying fundamental new leads for innovative technologies that meet growing energy demand while dramatically reducing greenhouse gas emissions, ExxonMobil, took the lead in launching the $225 million Global Climate and Energy Project (GCEP) at Stanford University in December GCEP is the largest privately-funded, long term research program of its type in the world, with a charge to accelerate the development of commercially viable energy technologies that can lower greenhouse gas emissions on a worldwide scale. Its stated mission is to conduct fundamental research on technologies that will permit the development of global energy systems with significantly lower greenhouse gas emissions. GCEP s current technology focus is on hydrogen production, storage and use; biomass (including cellulosic accumulation and conversion) and solar energy; carbon dioxide capture and storage; and advanced transportation and coal technologies. I have also enclosed a copy of the latest report of the important work being done by GCEP. A full list of ongoing projects is available on the GCEP web site at GCEP recently held a symposium in September 2006 to share progress in all these areas with the wider scientific community. Advanced Vehicle Technology Research. ExxonMobil is undertaking joint research on advanced vehicle technologies with Toyota and Caterpillar, to develop high efficiency, low-emission gasoline and diesel fuel engine systems. One area we are working is Homogeneous Charge Compression Ignition (HCCI), a combustion technology combining the characteristics of diesel and gasoline engines to deliver up to 30 percent improvement in fuel economy and significantly lower emissions. Early HCCI engines could be on the road in just a few years. Our work with Toyota in combustion science has received an award from the Society of Automotive Engineers. Mitigating Greenhouse Gas Emissions Through Efficiency Systems and Best Practices. ExxonMobil has reduced emissions in our own operations through improved efficiencies that have resulted from our Global Energy Management System (GEMS); reduced flaring of natural gas at production sites; and we are investing to expand cogeneration capacity at our refineries (at a cost of $1 billion in ). These and other actions implemented since 1999 enabled our company in 2005 to avoid 11 million metric tons of greenhouse gas emissions, or the equivalent of taking about 2 million cars off the road.
4 - 4 - We are working now to identify and implement additional measures to more than double these reductions in the near future. Partnering with the U.S. Environmental Protection Agency and Department of Energy to Reduce Greenhouse Gas Emissions. This year, ExxonMobil became the first petroleum company to join the EPA's "Smartway" Transport Partnership, which aims to save over 6 billion gallons of fuel annually in the U.S. freight transport system through the implementation of most efficient operating practices. Also, in September, ExxonMobil became a charter member of EPA's Natural Gas Star International Program. This new Program will expand to international operations the technologies and practices to reduce methane emissions in the United States that have succeeded in achieving a 6 percent reduction from a 1990 baseline. This new partnership also supports the international Methane to Markets Partnership and complements the existing suite of U.S. international climate change programs. Finally, through a 2003 industry-wide commitment by the American Petroleum Institute to the U.S. Department of Energy, ExxonMobil is also continually improving the energy efficiency of its refining operations, to allow a 10 percent improvement between 2002 and Under API's Climate Action Challenge, improvements for the first two years show that companies are on track to meeting their goal, saving energy equal to that used by over 475,000 cars each day. Partnering with the European Commission to study Carbon Capture and Storage (CCS). We recently announced our involvement in CO2ReMoVe, a ground-breaking research initiative to establish scientific monitoring systems and determine the reliability of geological carbon dioxide storage. Studies indicate that Carbon Capture and Storage technologies could be a major contributor to reducing carbon dioxide emissions over this century. ExxonMobil has been involved in the development and utilization of CCSrelated technologies for over three decades and we are pleased to lend our financial support and technical experience to the project. With regard to your interest in the support ExxonMobil provides to various public policy organizations, our support extends to a fairly broad array of organizations that research significant domestic and foreign policy issues and promote discussion on issues of direct relevance to the company. For example, we support groups ranging from the Brookings Institution to the American Enterprise Institute, and from the Council on Foreign Relations to the Center for Strategic and International Studies. As most of these organizations are independent of their corporate sponsors and are tax-exempt, our financial support does not connote any substantive control over or responsibility for the policy recommendations or analyses they produce. As you might expect, in many cases and with respect to the full range of policy positions taken by these organizations, we find some of them persuasive and enlightening, and some not. But there is value in the debate they prompt if it can lead to better informed and more optimal public policy decisions. By analogy, you would similarly understand that some people support national political parties, but do not necessarily agree with every party position on public policy issues or every politician who is affiliated with that political party. For your information, we annually review our support of tax-exempt organizations and make appropriate adjustments. In addition, we publish the complete list of such organizations on our web site - and we update this list once per year.
5 - 5 - The enclosed copy of our most current Corporate Citizenship Report describes our commitment to leadership in corporate citizenship - and provides a global picture of the scope of our specific actions as we translate our values into actions. We are proud of our achievements to date and we look forward to even greater achievements in the future. Thank you for providing us the opportunity to explain our position and actions relating to the complex subject of global climate change. As always, we would welcome the opportunity to meet with you or your staffs to discuss these issues and any questions you may have concerning the information we have provided. Sincerely, Enclosures c: R. W. Tillerson R. D. Nelson
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