Miles O'Brien of PBS serves as master of ceremonies during a National Tribute to Sally Ride at the John F. Kennedy Center for the Performing Arts, Monday, May 20, 2013 in Washington. Photo Credit: NASA/Bill Ingalls

We share Sally’s recognition that science and engineering have the power to transform lives and address the challenges of the 21st century, from energy and information to agriculture and medicine. Furthermore, our economy and America’s ability to compete globally require a workforce that has technical skills and an ability to innovate. The majority of jobs in the coming decades will require some knowledge of science, technology, engineering and math (STEM). Yet, far too few students are pursuing these fields of study.

We were proud to work with Sally to address this challenge.

Together, we created the Sally Ride Science Academy to prepare young people for careers in STEM-related industries. In just four years, we have helped train close to 9,000 teachers across the country who are having a positive impact in today’s classrooms, introducing students to the wonders of science and the diversity of STEM-related careers. Sally also worked with us as a founding board member of the National Math and Science Initiative.

Her dedication to STEM education will live on because the mission is so critical to our nation’s future.

In that same spirit, I was pleased to see the White House’s announcement that President Obama intends to award Sally the nation’s highest civilian honor, the Presidential Medal of Freedom, later this year. The honor is fully deserved.

That announcement came on the same day that NASA and Sally Ride Science hosted a national tribute to Sally at the Kennedy Center in Washington, DC. She was honored not just for her lifelong commitment to space exploration, but for her dedication to improving science education and supporting science literacy.

Former NASA astronaut and space shuttle commander Pam Melroy summed up the significance of Sally’s contributions perfectly: “Her achievements in space inspired a generation of young women, and her achievements in STEM education will pass that legacy of inspiration on to future generations.”

ExxonMobil and Sally Ride Science produced a video about Sally’s legacy as part of the national tribute, and I invite you to watch it below.

That implication is dead wrong.

I responded to them this week in a letter you can read here. But I want to take this opportunity to highlight publicly a few points (missed by PWYP) that are germane to the issue of transparency and to the court challenge against the SEC rules. The legal challenge was filed by the American Petroleum Institute, U.S. Chamber of Commerce, Independent Petroleum Association of America and National Foreign Trade Council.

The first, and most significant, point is that ExxonMobil believes transparency is an important and worthy goal, and we have supported efforts to promote transparency since long before Congress and the SEC took up the issue.

Since its inception more than a decade ago, we have been an active participant in the Extractive Industries Transparency Initiative (EITI), a constructive framework endorsed by the Obama administration that engages governments, business, civil society and financial institutions in a collaborative effort to improve transparency and accountability in the extractive industries sector (see video below). ExxonMobil has supported EITI implementation in countries such as Iraq, Indonesia, Chad, Cameroon, Kazakhstan, Equatorial Guinea and Azerbaijan, and in potential new applicant countries such as Australia, Colombia and Papua New Guinea.

A few other things worth considering:

• ExxonMobil supports the disclosure of government revenues from the extractives sector so long as there is sufficient aggregation of reported data to protect proprietary information and the competitiveness of individual companies.
• As currently written, the SEC’s transparency rules will disadvantage U.S.-listed companies against numerous large foreign competitors that are not bound by Dodd-Frank.
• According to the SEC’s own estimates, its rules will cost industry $1 billion upfront to establish necessary accounting systems, not to mention hundreds of millions of dollars annually in compliance costs. That doesn’t include the billions of dollars of additional costs the SEC acknowledges for the lost business that could result from the regulations’ perverse directives to divulge proprietary data and to either break the law or cancel projects in countries prohibiting such detailed disclosure.
• Ostensibly designed to promote transparency, the new SEC rules will actually harm it, as countries wishing to shield detailed information from public view will simply do business only with companies not bound by Dodd-Frank (which includes the vast majority of the world’s largest oil companies, which are not publicly traded in the U.S.).

It seems to me that to have a chance of being successful, a transparency initiative at a minimum must pass three tests. It must apply to all companies. It must protect proprietary information to provide a competitive framework for the energy industry. And it must not violate host government laws or contractual obligations.

The so-called transparency rules finalized last year by the SEC fail all three tests. They will harm American businesses and American consumers while undercutting effective efforts to promote transparency that have been underway for the last decade.

Because we support transparency, as well as the principle that American businesses should not be disadvantaged by their government’s rules, ExxonMobil supports asking the judiciary to review a set of regulations that seem to run counter to the intent of Congress, as provided both under the Securities and Exchange Act of 1934 and the Dodd-Frank Wall Street Reform and Consumer Protection Act it passed 76 years later.

As we have shared with the community, we are committed to the cleanup and will be there until it is completed.

I thought you might like to see a couple of videos we produced for the community that reinforce that commitment and highlight an area of focus – protecting native wildlife. We’re working with Wildlife Response Services, LLC to clean, rehabilitate and release wildlife impacted by the spill.

Now, you can hear more about these issues from our employees and partners through videos on our new YouTube channel.

We’re going to use this channel to post items on a range of topics, including energy technology, math and science education and other issues relevant to ExxonMobil’s business. In addition, the YouTube channel features a live feed from this blog and our Twitter account.

I invite you to take a look at http://www.youtube.com/user/exxonmobil, and feel free to send me your questions.

What’s most important about hydraulic fracturing (or “fracking”), the study found, is ensuring that proper well design and water-handling procedures are rigorously applied at every well.

The finding is just the latest confirmation of what the U.S. Ground Water Protection Council and others have found in their studies of hydraulic fracturing:

“Taken together, state and federal requirements, along with the technologies and practices developed by industry, serve to protect human health and help reduce environmental impacts from shale gas operations,” the Ground Water Protection Council said in a primer prepared for the Department of Energy in 2009.

But public questions remain, and I think many people might be wondering, “So what exactly does ‘proper well design’ mean?”

To answer that question, we recently developed an animation to show how a natural gas well is drilled, the safety measures that are in place to protect groundwater, and what actually takes place during hydraulic fracturing.

You can take a “tour” of the well by playing the video here, or you can view it on ExxonMobil’s YouTube channel. Let’s walk through the basic phases of natural gas production:

• Preparing for drilling (4 to 8 weeks): This phase involves securing a drilling rig, conducting final tests and environmental analyses, and securing all permits to ensure drilling is done in accordance with regulations. This is also the time we use to implement our own safety and operational plans on top of those required by the government – such as planning for proper management of the project, ensuring plans incorporate responsible practices, and reviewing procedures with employees and contractors.
• Rig work (4 to 5 weeks): This involves constructing the drilling rig and drilling the well. As professionals drill the well, they install a series of protective steel-and-cement layers that maintain the integrity of the well and protect the surrounding formations. In the upper part of the well, multiple layers of cement and steel casing are installed to create an impermeable barrier between the well and groundwater zones. Drillers also use casing deeper in the well to ensure its integrity and to isolate natural gas formations from the surrounding areas. Engineers and technicians test and monitor each layer of casing and cement to ensure the integrity of the well and the quality of the protective casings.
• Hydraulic fracturing (2 to 5 days): Hydraulic fracturing is a technique used relatively briefly during the well completion process. It often takes place a mile or more below groundwater supplies. Shale rock has gas trapped in pores smaller than the width of a hair, so we must create a network of small fissures in the rock to release the gas. This involves injecting a mixture of 90 percent water, 9.5 percent sand, and 0.5 percent chemicals (that in part prevent bacterial growth and reduce friction) into the well at high pressures to keep the fissures open, which allows the gas to flow. Again, the activity is continuously monitored. Experts monitor data such as injection pressure and flow rates during the process to ensure that everything is going according to plan.
• Producing natural gas (25 to 40 years):  Once a well is drilled and completed over the course of a few months, it is ready for production. Everything is dismantled except for a four-to-six-foot well-head and the local processing facilities that connect to gas lines that eventually run to the national distribution network.  A natural gas well can produce gas for up to four decades, and all the while it’s monitored to ensure continual well integrity.

While public discussion is focused on the safety of hydraulic fracturing, those of us in the energy industry remain focused on making sure every step of the process – from set-up to drilling to fracturing to producing – is conducted safely and responsibly.

The industry has used hydraulic fracturing on more than 1 million wells over the course of 60 years. And we don’t count on a successful track record alone; we rigorously implement safety and environmental plans at every site and seek continuous improvements.

Unfortunately, the facts on hydraulic fracturing have been overshadowed by inaccurate accounts of natural gas production – the documentary GasLand is just one example (take a look at Energy In Depth’s debunking of the claims made in this film).

So moving forward, what do we need to do to have a rational discussion about natural gas development, including hydraulic fracturing?

Those of us in the industry can help by explaining what we do and how we do it safely – in terms that everyone can understand.

Those in local, state and federal governments can help by creating sound policies based on scientific study and fact, not unfounded claims.

And, the American public can help by looking at all sides of the debate and insisting on a facts-based discussion.

At a major energy speech back in March, President Obama said, “the potential for natural gas is enormous.” Potential can only become production if we separate fact from fiction in the hydraulic fracturing debate.

Students who pass an AP exam are three times more likely to graduate from college. That means that if we can get more students to take and pass AP exams – especially in math and science – U.S. companies including ExxonMobil will have a greater pool of talent from which to recruit. And the greater the pool of talent, the more likely it is that we will develop the next generation of engineers, scientists and innovators in energy and many other fields.

It’s reasoning like this that led ExxonMobil to commit $125 million as a founding sponsor of the National Math and Science Initiative (NMSI) in 2007. In just a few short years, we’re already seeing the return on investment. One of NMSI’s signature programs is the Advanced Placement Training and Incentive Program, which encourages high school students to take college-level AP classes in subjects such as calculus, chemistry and physics. From 2008 to 2010, students at NMSI schools achieved an overall 98 percent increase in math, science and English AP exams passed – more than seven times the national average.

Those are impressive results. But even more impressive are the stories behind the students who are taking and passing more AP exams thanks to NMSI’s AP program. You can read more and watch videos of the students and teachers who are making U.S. math and science education stronger through AP at myNMSIstory.com.

The students were also featured in television advertising over the weekend on CBS, and I’ve included one of the ads here. Tommy, from Windham High School in Willimantic, Conn., talks about how AP classes have given him direction and the skills to pursue an engineering degree.

With AP exams, we’re not just testing American students. We’re testing U.S. competitiveness. Three decades ago, the United States ranked third among developed nations for college students earning science and engineering degrees. Now, about 20 other countries rank ahead of us in these vital subjects. It’s time to reverse this trend, and NMSI’s AP program is a step in the right direction.

Want to know how much energy the world will need over the next couple of decades and where it will come from?

Take a look at ExxonMobil’s newly released Outlook for Energy. There, you’ll find that growing populations, coupled with economic and social progress, mean the world is going to need more energy by the year 2030. And we’ll need a diverse mix of affordable energy sources to meet this demand.

Released today, our Outlook found that the world’s single largest energy source through 2030 will continue to be oil because of its importance as a transportation fuel, which will be especially in demand in fast-developing economies worldwide. But overtaking coal for the No. 2 spot in the world’s energy lineup is a cleaner-burning fuel that can help meet the world’s enormous power generation needs: natural gas.

Natural gas is abundant, affordable, versatile and can reduce CO2 emissions by up to 60 percent compared to coal when used to generate electricity. Because of these qualities, natural gas will be the fastest-growing major fuel through 2030, as worldwide demand increases by more than 60 percent from 2005.

This development is just one of the significant shifts forecast in the new report. Built upon public and proprietary data for more than 100 countries, the Outlook helps guide ExxonMobil’s global investment decisions. It is, in effect, the foundation for our playbook. So why share it publicly? Because we believe that everyone benefits when consumers and policymakers are well-informed about energy and environmental challenges and options.

Here are just a few more of the report’s key findings:

• By 2030, global energy demand will be about 35 percent higher than it was in 2005. Growth will be led by China, India and other fast-developing countries, where rapid economic progress and rising living standards are fueling big increases in energy usage.
• U.S. energy demand will hold steady through 2030, as it will in many mature economies, where relatively slower growth in energy needs can be offset by ongoing improvements to efficiency.
• Power generation will be the largest and fastest-growing global demand sector. By 2030, power generation will account for more than 40 percent of all energy demand.
• In the U.S. and other mature economies, CO2 emissions will decline significantly through 2030, while rising energy demand in fast-developing economies will push global emissions up by about 25 percent.

With just these few key facts, you can see the challenges ahead. Growing economies need more energy, including electricity. We must meet this rising demand safely and with minimal impact on the environment. As our Outlook shows, technology has proven to be one of the best means to manage these challenges.

Natural gas is a perfect example. In just the past few years, advances in “unconventional” gas-production technologies have, for the first time, made it economically feasible to tap the enormous supplies of natural gas that are found in tight rock and shale, as well as coal bed methane.

The result is nothing short of revolutionary. A generation ago, unconventional natural gas production was not economically possible. Today, it’s the fastest-growing major energy source on the planet. And by 2030, the world’s unconventional gas production will be nearly one and a half times greater than the oil output of Saudi Arabia.

Meeting our energy and environmental challenges will not be easy. It will require pursuing a diverse mix of economic energy sources, plus continued progress on efficiency. Critically important will be stable, predictable regulatory frameworks that allow for long-term investment in the technology and infrastructure needed to develop the energy that will be required to meet growing demand.

I encourage you to visit our Outlook for Energy website where you can view and download our latest report, and I’d welcome any feedback and questions you might have.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I’d like to thank Ken and ExxonMobil for giving me this opportunity to talk about the role of Africare and the importance of continuing to provide support for development and progress in Africa.

Since our founding in 1970, Africare has provided more than $1 billion in assistance and supported more than 2,500 projects in 36 countries. Our work has helped millions of people across the continent of Africa meet basic needs, improve healthcare, fight disease and improve economies.

While we’re very proud of what our organization has achieved, we have not done it alone. Leaders from around the world — presidents, philanthropists, CEOs, educators, citizens – have joined us in helping bring aid and economic empowerment to the African people.

On Monday, Mickelson himself paid a visit to this year’s national academy at the Liberty Science Center in Jersey City, N.J. There, teachers from all 50 states are spending a week sharpening their skills in math and science education and learning innovative new tools to bring back to their classrooms. 

I have immense respect for these teachers, because they truly are facing a daunting challenge. At a time when we need more young minds pursuing fields like medicine, computing and energy to keep the U.S. internationally competitive, the reverse is happening in our schools. In a 2007 educational assessment of 30 countries, U.S. 15-year olds ranked 21st in science and 25th in math. Our loss is a big gain for other nations that are gaining strength in these fields. 

Mickelson, who won his third Masters tournament earlier this year, has said that helping teachers is the best way to address this national challenge. “We can’t expect to have innovative kids if we don’t have innovative teachers,” Mickelson said. “So, we’re dedicated to giving them the tools to get the job done.”

Since we founded the Academy in 2005, we have trained more than 2,400 teachers in its annual summer programs in New Jersey, Texas and Louisiana. They are just some of the investments that ExxonMobil is making to support U.S. math and science education. 

If you or your kids know of a teacher in the third, fourth or fifth grades who deserves this opportunity, go to www.sendmyteacher.com. Nominations for the 2011 Mickelson ExxonMobil Teachers Academy are open until the end of October.

One year has passed, and I’m excited to say we’re entering the next phase of our program. Today, we announced the opening of a new state-of-the-art greenhouse facility at the SGI headquarters in La Jolla, Calif.  The greenhouse will be home to the next level of research and testing in our algae biofuels program.  SGI and ExxonMobil researchers are already using the facility to test whether large-scale quantities of affordable fuel can be produced from algae.

The greenhouse is an important component of the program. It gives researchers more realistic conditions for algae production, compared to an indoor lab. In the greenhouse, scientists will look at different growth systems for algae, such as open ponds and closed photobioreactors. They will also compare different types of algae, including both natural and engineered strains, and test them in varying light levels and temperature conditions to find the ones that are most productive. And, they will research other aspects of the algae fuel production process, including harvesting and bio-oil recovery operations. (Our algae brochure has an overview of the production process if you’re interested.)

Of course, this research won’t happen overnight. It could take as long as 10 years for algae biofuels to potentially reach the scale needed to make an impact on fuel supplies. In the meantime, we’ll continue to scale up our facilities and research – including a larger, outdoor test facility anticipated in 2011 – to test this promising alternative fuel source that could help meet our growing energy needs.

To learn more about the greenhouse and the progress we’ve made in the past year, check out our press release. You can also read a Dow Jones article about the greenhouse opening here.