Exxon Mobil

ExxonMobil ‘Nimby’ CEO Makes Fresh Calls for Fracking in Europe

Rex Tillerson, chief executive of ExxonMobil, the world’s largest oil company, has called for European governments to support fracking, despite being called out as a ‘nimby’ last year.

Speaking at the World Gas Conference in Paris this week, he claimed that the large number of wells already fracked in the US and Canada have proven that the technology is safe.

However, just last year, Tillerson joined a lawsuit citing fracking’s consequences in order to stop the construction of a 160-foot water tower as it would harm the value of his $5 million home in Texas.

United Steelworkers Oil Refinery Strike Spreads

Workers at Shell and Motiva refineries in Norco, Louisiana, about 30 miles west of New Orleans, have joined the growing national United Steelworkers Union (USW) strike. In total, 15 facilities are now striking, making this the largest refinery strike since 1980.

On the second night of the strike in Norco, a giant flare at the Shell refinery illuminated the workers on the picket line, serving as a reminder of the dangers that come with working at refineries.

“There are a lot of hazards out here,” Bryan Shelton, a media liaison for the union, said. “If you have that much hydrocarbon in one area, you have a chance for a lot of things to go wrong, so if you have someone working too many hours that is a dangerous thing.”

Willie Soon Attacks Funders of Climate Denial for 'Lack of Courage'

Willie Soon is at the centre of a perfect climate science denial storm, writes Brendan Montague with additional reporting from Kyla Mandel.

The aerospace engineer working at the the Harvard-Smithsonian Center for Astrophysics was caught out when telling his fossil fuel industry funders that his research papers and U.S. Senate evidence were “deliverables”.

The controversy made the front page of the New York Times and now his employer has launched an investigation into the ethics of his secret funding. There is even a petition asking for his dismissal.

And his day is about to get even worse.

Exxon to Shareholders: No Carbon Bubble Risk Here. Carbon Tracker to Exxon: Really?

Still own some Exxon Mobil stock and been dithering about divestment?

You’re leaving money on the table, and exposing your portfolio to severe risks that the company itself is underestimating. That’s according to a new report published by the Carbon Tracker Initiative, which finds that the stock’s recently sub-par performance can partially be explained by the company’s increasing dependence on tar sands.

Carbon Tracker says that Exxon is “significantly underestimating the risks to its business model from investments in higher cost, higher carbon reserves; increasing national and subnational climate regulation; competition from renewables; and demand stagnation.”

Back in March, Exxon responded to a shareholder resolution by Arjuna Capital and As You Sow, two shareholder advocacy organizations, regarding potential carbon asset risk. The original resolution had demanded greater transparency in how Exxon assesses the risks to its significant carbon-based assets in a future where low-carbon policies and changing market forces could strand these assets. Exxon responded with a 29-page report, “Energy and Carbon – Managing the Risks.”

The Carbon Tracker Initiative closely examined Exxon’s report and has now published a firm rebuttal.

Days Before Obama Announced CO2 Rule, Exxon Awarded Gulf of Mexico Oil Leases

On Friday May 30, just a few days before the U.S. Environmental Protection Agency announced details of its carbon rule proposal, the Obama Administration awarded offshore oil leases to ExxonMobil in an area of the Gulf of Mexico potentially containing over 172 million barrels of oil.

The U.S. Department of Interior's (DOI) Bureau of Ocean Energy Management (BOEM) proclaimed in a May 30 press release that the ExxonMobil offshore oil lease is part of “President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production.” 

Secretary of Interior Sally Jewell formerly worked as a petroleum engineer for Mobil, purchased as a wholly-owned subsidiary by Exxon in 1998.

Dubbed a “Private Empire” by investigative reporter Steve Coll, ExxonMobil will now have access to oil and gas in the Alaminos Canyon Area, located 170 miles east of Port Isabel, Texas. Port Isabel borders spring break and tourist hot spot South Padre Island.


Map Credit: U.S. Bureau of Ocean Energy Management

ExxonMobil originally won the three leases at the Western Planning Area Sale 233, held on March 19. BOEM records show ExxonMobil was the only company to participate in the bid and paid over $21.3 million.

Pegasus Pipeline Spill: Mayflower Residents Find Conflicting Advice from Arkansas Agencies

It’s been over five weeks since ExxonMobil’s Pegasus pipeline burst beneath a Mayflower, Arkansas subdivision, spilling diluted bitumen born of tar sands throughout the neighborhood. Five weeks later, and still the air carries noxious fumes. Residents complain of headaches, nausea, and worse.

Meanwhile, these residents of Mayflower are getting mixed signals from various state agencies, as well as the EPA and ExxonMobil.

While Exxon, the EPA, the Arkansas Department of Environmental Quality (ADEQ), and the Arkansas Department of Health are assuring the community that the air is safe, Arkansas’s Attorney General Dustin McDaniel isn’t so sure.

As we met with residents and groups that represent them, like Remember Mayflower, I heard time and time again about their health, especially the health of their children,” McDaniel said last week. “Many continue to suffer from headaches and nausea and air sampling continues to show that the carcinogen benzene remains in the air.”

Tar Sands Tax Loophole Cost US Oil Spill Fund $48 Million in 2012, Will Cost $400 Million by 2017

A tax loophole exempting tar sands pipeline operators from paying an eight-cent tax per barrel of oil they transport in the US is costing the federal Oil Spill Liability Trust Fund millions of dollars every year. With expected increases in tar sands oil production over the next five years, this loophole may have deprived US citizens of $400-million dollars worth of critical oil-spill protection funds come 2017.

According to a report by the US Natural Resources Committee the federal government pays for immediate oil-spill response from the Liability Trust Fund which is supported by an excise tax on all crude oil and gas products in the US.

But in 2011 the Internal Revenue Service exempted tar sands oil from the tax, saying the substance did not fit the characterization of crude oil.

This exemption has come under scrutiny this week after Exxon Mobil's Pegasus pipeline ruptured in Mayflower, Arkansas, releasing 300,000 litres of tar sands oil and water into a residential neighbourhood and surrounding wetlands. Because the line carried tar sands-derived oil from Alberta, Exxon was exempt from paying into the spill liability fund for the corrosive fuel's potential cleanup.

Can We Trust Exxon To Pay for Pegasus Tar Sands Spill Cleanup? Their History Suggests Otherwise

ExxonMobil is getting defensive about its response plans for the tar sands pipeline spill in Arkansas. The company took to Twitter this afternoon to respond to what it called “allegations” that Exxon isn't liable for the full costs of cleaning up their tar sands crude spill in Mayflower, Arkansas.  

Here's the tweet from @exxonmobil sent in response to critics who pointed out that, because of a major loophole that needs to be closed, bitumen is not considered crude oil, and therefore tar sands pipeline operators like Exxon aren't required to pay into the oil spill cleanup fund

A couple of things to unpack here.

Shale Gas Uncertainty: How an Industry Talking Point Misses the Mark

When oil and gas executives gathered in Pittsburgh, Pennsylvania to discuss the state of the industry shortly after Obama won re-election, they raised a recurring complaint.

“We now face four more years of regulatory uncertainty,” said Randy Alpert, an official with Consol energy told gathered shale gas executives.

Penny Seipel, Vice President of the Ohio Oil and Gas Association hit a similar note the very next day.

“Unfortunately, we have had quite a bit of uncertainty regarding our fiscal situation,” she said as she described proposed regulation and taxation of drilling companies in her state.

This uncertainty mantra has been trotted out by many industries facing potential oversight and is now being picked up by oil and gas: “We are not against regulation, we are against regulatory uncertainty,” the line goes. “We don’t care what the rules are,” companies say, “just tell us ahead of time and then we will follow them gladly.”

This well-worn trope gives the impression that drillers do not view regulators as adversaries. All they’re asking for is common-sense fairness. Who could be against someone asking to know what the rules are? Predictability is a reasonable request.

It's a shrewd position for the shale industry. But it’s also deeply misleading and worth flagging now since it is likely to get amplified in coming months as more attention turns to whether federal officials should step up their oversight of oil and gas drilling.

The Many Problems With Tar Sands Pipelines

Enbridge tar sands pipeline spill Kalamazoo River Michigan

Note: This post is part of an ongoing series about North American pipelines. For an introduction and links to the wide-ranging coverage–from safety to legal issues to the business and economics to vulnerabilities–see this regularly-updated intro post.

On Monday, the House passed a bill that would force the Obama administration to make a final decision on TransCanada’s controversial Keystone XL pipeline by November 1. The Keystone XL project (which regular DeSmogBlog readers should be familiar with) would funnel tar sands oil from Alberta’s massive reserves down to Gulf Coast refineries in Texas.

This isn’t the place to discuss in too much depth the various and plentiful problems with Alberta tar sands itself – from extraction to transportation to refining to combustion, it’s the dirtiest oil on the planet. From a climate perspective, the Alberta tar sands contain enough carbon to lock the planet into climate chaos. In the words of NASA climatologist Jim Hansen, “if the tar sands are thrown into the mix it is essentially game over.”

Because Keystone XL is so controversial, and because its construction could be such a tipping point in the climate fight, a broad and diverse coalition of scientists and activists are digging in their heels for a big fight, and planning a multi-week action at the White House. (Here’s more on how to get involved.)

But since this is a post about pipelines, I’m going to focus on how tar sands pipelines are different than those that carry conventional crude, how they’re much more prone to leaks and spills, and how those spills are particularly bad for the environment.

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