Exxon-mobil (Environmental Economics Point of view)

1. How can the source of the problem
become part of the solution?

2. Agenda
• Royal Dutch Shell PLC
• ExxonMobil
– History
– Key Numbers
– Self Image
– Environmental Track Record
– Environmental Initiatives
• Criticism
• International Regulations & NGOs
• Future of Oil Companies

3. Royal Dutch Shell PLC.

4. 101,000 Employees
2010 Revenues: $368.056 Billion (USD)
2010 Net Profit: $20.474 Billion (USD)
Capital investment: $30.6 billion
>$121 million spent on voluntary social
investments.

5. Royal Dutch
Petroleum in
1890
Merged to be
SHELL Group
in 1907.
HQ in Hague,
Netherlands.
Business Upstream Midstream Downstream
Consulting
Activities: (Production) (Refinery) (Distribution)

6. Shell is a global group of energy and petrochemical companies. Our aim is to meet the
energy needs of society, in ways that are economically, socially and environmentally
viable, now and in the future.

8. To continuously deliver shareholder value by:
• Delivering bulk petrochemicals to large industrial customers, through simpler
organizational structures and at the lowest total delivered cost.
• Conducting our business in a safe, environmentally sustainable and
economically optimum manner
• Employing a diverse, innovative and
results-oriented team motivated to
deliver excellence
• We are judged by how we act: our
reputation is upheld by how we put into
practice our core values of honesty,
integrity and respect for people

10. Environmental Initiatives

12. 1911
1963
1972
1999

13. • Exploration
Upstream • Extraction
• Shipping
• Marketing
Downstream • Refining
• Retail
• Packaging
Chemicals • Plastic
• Rubber
• IT
Global
• Real Estate
Services
• Procurement

14. 84,000 Employees
2010 Revenues: $383.221 Billion (USD)
2010 Net Profit: $30.46 Billion (USD)
$237.1 Million in Public Investments
$6.9 Million to Environment

15. Market Capitalzation
450
Leader amongst the oil Sponsor and leader of
400
giants in pioneering several environmental
350 Corporate Citizen
environmentally and efficiency
300
sustainable operations initiatives
250
200
Market Capitalzation
150
100 Excellent Employer Excellent Investment
50
0

16. “The amount of hazardous waste disposed in 2010 from
our ongoing operations totaled 1.3 million metric tons.
The majority of this volume, 1.2 million metric tons, was
produced water, which is typically not considered
hazardous, but which has been classified as hazardous
waste by one local authority. Excluding this, we re-used or
recycled about 43 percent of the hazardous waste
generated by our operations.”
Actual percentage = 3.308%
Fresh Water Usage = 340.2 billion litres

17. ExxonMobil Capital
Projects Global Climate & Energy
Management Energy Project Cogeneration
System (EMCAPS)
Carbon Capture & Global Energy
Flare Reduction Storage (5 Million Management
mt, 2010) System

18. 1989: Exxon Valdez
1995: Brent Spar
Funding of Climate-
Change Speculation
Profits Before
Planet
Oil Sands

19. Data ExxonMobil Shell
GHG Emissions 2010
132 million 75 million
(metric tonnes)
Spills (2010) 210 193
Fresh Water Usage (litres) 340.2 billion 202 billion
Hydrocarbon Flaring 2010
3.2 million 3.5 million
(metric tonnes)
CO² Equivalent 9.4 million 10.3 million

21. Carbon
Taxes.
• Emission quotas.
Kyoto • Tradable Pollution
Protocol Permits.
(5.2% to • Emission Reduction.
2012) • Clean Development
Mechanism.

22. Activists: Advisory:
• Greenpeace • Center for International
• WWF Environmental Law (CIEL)
• Friend of Earth • Environmental Defence
(ED)
• The Foundation for
International Law and
Development (FIELD)

23. Corridor Politics – Strikes and Demonstrations – Active
Participation
Design of
Access to Pressure on
Compliance
Negotiations companies
Regime

24. Carbon
Capture to
extract oil
Environmental Investment in
CSR Natural Gases
Investment of
Work on
Renewable
Efficiency.
Energy