The Dernogalizer

May 28, 2009

Exxon Wrong

Filed under: Energy/Climate — Matt Dernoga @ 4:51 pm
Tags: , ,

Exxon’s CEO Rex Tillerson said today that oil will be the dominant fuel for a century.  What is it with these silly oil companies?  In case you want to know why Exxon is a pathetic company, this website exposes them well.  You didn’t really believe them and their commercials where they glowingly talk about cutting global warming pollution and conservation, and the need to protect the environment, did you?  I wonder how many people buy that PR, otherwards known as BS.  Even adding to the hilarity is one of the comments by Tillerson, where is says.. “lawmakers are hurrying to restrict greenhouse gases when many scientific questions surrounding the global warming issue remain unresolved.”  That’s what should be on their rosy commercials.  

A couple months ago, I took Shell to task over their decision to eliminate investment into renewables besides biodiesel.  I think what I said to them is what I could say to Exxon, seeing as how Exxon invests squat as well.  I’m going to take part of that post and paste it here.

“But even if you’re only thinking of your bottom line, how do you come to this conclusion that not only will we not invest much money in renewables, but we won’t invest ANYTHING.  I can see how this would’ve been a good move in 2000 when we had oilmen coming into the Whitehouse.  There were lots of calls for increased drilling, removal of environmental protections, and no action on climate change.  At this point, putting all the eggs in the oil basket might make sense.  But let’s look at what the state of things are now with the next 8 years in mind, as opposed to the last 8 years.

We’ve got an anti-drilling Democratically controlled Congress and Whitehouse.  Environmental regulations are going to be popping up all over the place.  If you look at the stimulus, the overwhelming majority of the money relating to energy was clean energy.  There was also a record amount of money invested in mass transit.  Whatever tax breaks the oil companies got during the last 8 years are likely going to be removed.  There are now new and far reaching tax breaks at the Federal level for solar, wind, geothermal, biodiesel, and plug-in hybrid-electric cars.  These kinds of credits are also showing up all over the states.  My own state of Maryland has a 10k credit for solar, similar incentives for other alternatives, and my county Prince Georges County has a 5,000 dollar property tax credit.  General Motors and Toyota are coming out with plug-in hybrids within the next few years.  Other auto companies are taking a stronger look at it them, and are introducing more hybrids.  Oh, and the US and other countries around the world either have passed or are about to pass climate change cap and trade policy that will inevitably drive up the price of gas and decrease consumption.

I could go on.  Hopefully you get the point.  What are you thinking Shell?  The problem I see with this when you’re purely looking at a bottom line is that the trends are moving in the opposite direction of Shell’s actions.  It’s not smart investment to put none of  the $$$ into renewables when you consider the trends I listed above.  I predict that Shell is going to find itself at a big competitive disadvantage a few years from now when they suddenly realize they “want in” on this clean energy economy, but other companies beat them to the investment, research, start-up and have achieved greater economies of scale and efficiency.  At this point, entry into the clean energy market will hurt Shell, and they will look back on their decision in 2009 to cease renewable energy investment as poor planning.”

Your time is running out, and you’re off by a good 90 years Rex.


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