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Exxon boss speaks out against climate change 'fear factor'

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Published 02 July 2012, updated 14 December 2012

Fears about climate change are overblown and shifting weather patterns and rising sea levels should be considered an engineering problem, said the head of the world's largest oil refiner, ExxonMobil.

"The fear factor that people want to throw out there to say 'we just have to stop this,' I do not accept,"  Rex Tillerson, ExxonMobil's chief executive, said in a speech on Wednesday (June 27).

Tackling global poverty should have a higher international priority than reducing carbon emissions, because it would give billions of the world’s energy poor access to oil and gas supplies, in his view.

"They'd love to burn fossil fuels because their quality of life would rise immeasurably," he said.

"You'd save millions upon millions of lives making fossil fuels available to parts of the world that don't have it," he added.

Tillerson proposed adapting to the effects of climate change through engineering methods, rather than attempting to prevent them by eliminating the use of fossil fuels.

Humans had long adapted to change, he said, and governments should thus create policies to cope with the Earth's rising temperatures.

"Changes to weather patterns that move crop rotation areas around – we'll adapt to that. It's an engineering problem and it has an engineering solution," Tillerson said in a presentation to the US Council on Foreign relations in New York.

Tillerson's remarks came five days after Rio+20 summit in which leaders aimed at setting up goals for sustainable development to help the very people the oil executive mentioned.

People in the many of the world's poorest areas are expected to feel the harshest effects of climate change, including sea level rise, more severe storms, floods and droughts.

ExxonMobil, once one of the staunchest critics of climate change research, has acknowledged under Tillerson's leadership that human-made emissions have contributed to altering the planet's climate.

The company now supports taxing carbon emissions.

But the UN Intergovernmental Panel on Climate Change has emphasised the need for mitigation of global warming, including limiting climate-warming carbon emitted by fossil fuels like oil, along with adaptation to it.

Positions: 

US Secretary of State Hillary Clinton said at the Rio Summit, "Governments alone cannot solve all the the problems we face, from climate change to persistent poverty to chronic energy shortages."

​BusinessEurope​, the European business lobby, argues that climate change can only be tackled globally.

"We are ... convinced that any further increase of the EU's unilateral 20% emission reduction target at this point in time would be unlikely to convince other nations to adopt comparable targets. Furthermore, it would send the wrong signal to European industry in times of economic crisis," said Jürgen R. Thumann, BusinessEurope's president.

Oxfam advocates ensuring that any climate aid to developing countries is additional to existing development aid commitments and comes from public sources. 

"Only public funding can reach the most vulnerable communities struggling to adapt to climate change, and help poor countries adopt low carbon growth strategies," said David Waskow, climate change advisor for Oxfam. "And governments must make sure this funding is additional to existing aid targets – poor countries should not be forced to choose between building flood defences and building schools."

EurActiv.com with Reuters

COMMENTS

  • Well, the boss of Exxon is certainly impartial, and an expert in climatology. And Pacific and Indian Ocean island nations don't matter. Not seriously.

    By :
    Al Sargent
    - Posted on :
    02/07/2012
  • Hey Mr. Rex Tillerson....go fk yourself.

    By :
    Noz
    - Posted on :
    02/07/2012
  • Putting to one side Tillerson’s assertions with respect to climate change/fear factor – the assertion that poor people "They'd love to burn fossil fuels because their quality of life would rise immeasurably," needs to be tested against reality.

    Taking the example of Senegal, there are a number of businesses that provide electrical lighting and refrigeration to villages that are not connected to the national power network. This is accomplished through the use of PV panels and batteries. This solution is found to be cheaper than the fossil fuels sold by Tillerson’s company (which would power things such as diesel generators etc). There are a number of companies active in this market and they make a business out of it. The poor people are economic actors willing to pay European rates for electricity. No subsides and no government intervention is involved.

    Poverty is tackled in this sense by providing clean light (not kerosene lamps) and low cost refrigeration (for storing food). PWR has no connection to any of these companies in any respect.

    Moving on to another Tillerson assertion "You'd save millions upon millions of lives making fossil fuels available to parts of the world that don't have it," as the previous comments show – renewables could do the same thing, but cheaper and better.

    The last word goes to JK Galbraith (The Culture of Contentment page 115) with respect to the US Council on Foreign Relations and Tillersons talk Galbraith noted “issues discussed did not touch on the intellectually challenging…. or politically divisive issues” one supposes a place where conventional wisdom is aired to the usual suspects.

    Suggestion to Tillerson: get better PR, your current bunch are not up to it.

    By :
    Mike Parr
    - Posted on :
    02/07/2012
  • Since ExxonMobil is "one of the staunchest critics of climate change research", maybe they could share with us their counter-research, as it legitimates Mr. Tillerson appearance in front of the US Council on Foreign Relations?

    By :
    A
    - Posted on :
    02/07/2012
  • Tackling global poverty should have a higher international priority than reducing carbon emissions, because it would give billions of the world’s energy poor access to oil and gas supplies, in his view.

    No conflict of interest there. More people to buy oil. While lack of access to energy and poverty are correlated, i find it hard to imagine a resources such as oil being available to more than 6 million people at a reasonable price. If you talk coal, the other fossil fuel perhaps, but even Mr. Rex Tillerson (or should i say T Rex http://en.wikipedia.org/wiki/Tyrannosaurus) would probably agree that coal is not a simple engineering problem.

    By :
    dale chadwick
    - Posted on :
    02/07/2012
  • Yes sir, "The Man" says not to worry (even though he makes $34 million a year and is 60 years old so he really doesn't have to worry about the climate too much) and we can find solutions and adapt.
    Yes, Rex, no problem moving cities due to sea level rise, or shifting where crops grow,as long as you can continue to sell fossil fuels and get richer....
    the poor can buy air conditioners after they get electricity if it gets too hot. right?

    By :
    JPMOrgan
    - Posted on :
    03/07/2012
  • on the top of what has been rightly pointed out already with respect to provide clean renewable energy insstead of incresing burngin fossil fuel, I would invite Mr. Exxon to consider in conscience (assuming he has one)whether exploitation of poor countries' oil resources by Exxon, Chevron and the likes like happening since decades in Niger delta are contributing to keep entire populations into poverty. Oil coppanies are well knwon to steal natural resources in developping countries paying peanuts to often undemocratic beaurocrats who keep their people in miserable conditions. I find outraging to be lectured on poverty by people like Exxon CEO

    By :
    fabrizio fabbri
    - Posted on :
    04/07/2012
  • What Mr Tillerson says should not be dismissed as seems to be the knee-jerk reaction of other commentators. The EU's emissions reduction policy is quite likely to fail. Meanwhile, the growth of China and other emerging economies will increase annual emissions for the foreseeable future. Adaptation and helping people prosper makes much more sense.

    By :
    Martin Livermore
    - Posted on :
    04/07/2012
  • @ Martin,
    I agree that adaption will be necessary and energy is important for poverty reduction. What is your position on subsidies for fossils fuel extraction? is it a good thing that governments spend to support the use and production of fossil fuels, but do not cover the externalities via taxes.

    By :
    Dale Chadwick
    - Posted on :
    04/07/2012
  • Dale,
    Certainly there are unjustifiable subsidies on fuel prices in some countries. I'm not aware of extraction companies receiving subsidies specific to their industry, and they certainly contribute large amounts to public funds in taxes. Users of fossil fuels - particularly motorists - also pay taxes on them, including levies to support renewables. Renewable energy receives far more subsidy per unit than fossil fuels.

    By :
    Martin Livermore
    - Posted on :
    05/07/2012
  • In response to Mr Livermore's comment on "kneejerk reaction" I provided some concrete examples of where renewables are being deployed more cheaply (and sustainably) than the fossil fuel "solution" proposed by Exxon. Thus on a simple economics basis the use of, for example, PV to provide a social good (light & energy) outperforms the use of fossil fuel.

    Moving the argument on to subsidies (or indeed climate change or the EU's emissions policy) suggests that you have no counter arguments to the central point: poor people do not need to be dependent on fossil fuels sold by Exxon. There are alternatives, they are cheaper, healthier (try sitting in a hut with a kerosene lamp) and more sustainable - once installed PV panels last for 20 to 25 years, LEDs last as long.

    To restate, I have no involvement with any RES projects in Senegal or anywhere else for that matter.

    Tillerson and his ilk would like poor people to get "hooked" on the fossil fuel habit. There are alternatives. It is unfortunate that you divert the argument down paths irrelevant to the points Tillerson made.

    By :
    Mike Parr
    - Posted on :
    05/07/2012
  • Mike,
    Final comment from me.

    I'm not suggesting that there aren't places where renewables are entirely appropriate and economic. In the same way that developing countries have avoided the need for fixed-line phones by adopting mobile networks, grid electricity for rural areas is not the right solution at present.

    But very little oil is used for electricity generation. Mostly, it is a transport fuel and, until someone can find something better, it is likely to be used in this way for some time to come.

    FYI, I do not work directly or indirectly for the oil industry or any other energy sector. I'm just trying to look at the situation objectively.

    By :
    Martin Livermore
    - Posted on :
    05/07/2012
Background: 

Governments and academics are deeply divided over the economic costs and benefits of combating climate change and moving towards a low-carbon economy. 

The Stern Review, an influential enquiry into the issue, concluded in 2006 that fighting global warming would cost 1% of global GDP, while non-action could lead to a 20% loss of GDP in the long term. In comparison, research published in January 2009 shows that avoiding dangerous climate change could cost as little as 0.5% of global GDP.

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