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Exxon's Big Bet on Shale Gas Won't Pay Off if Clean Energy Scales

Mike Casey
May 02, 2012  |  2 Comments

For several years now, we’ve been making the case that the clean energy industry has to dramatically scale its advocacy investment to meet an aggressive disinformation campaign trained against it by the fossil lobby. We’ve found increasing receptiveness to that message, but we still run into people who think we’ve got tin foil on our heads. The refrain goes something like this: “Who’d want to do such a thing to wind, solar and geothermal power?”

Well, look no further than ExxonMobil CEO Rex Tillerson. He just effectively admitted that his massive company – the most profitable on Earth – has a strong financial interest in blocking clean energy scaling. According to Tillerson, his company – which has one of the worst reputations in America – has a lot of the farm bet on fracking-driven natural gas. The company is in the electricity business like it’s never been before, and this means it needs electrons generated from burning fracked gas in order to recoup that investment.

As CNNMoney reports:

Tillerson is betting much of his company’s future growth — and a good portion of his legacy — on the promise of fracking…To deliver the future returns that its shareholders expect, Exxon needs the XTO purchase — which so far hasn’t lived up to its promise because of falling natural-gas prices – to pay off bigtime.

Bottom line? Tillerson can’t make back his money if clean energy scales.

Set aside the arrogance of the suckers-game proposition Tillerson put in the article: “Prove to me that I need to prove my dirty practices aren’t dirty.” The fact is that Tillerson and other fracking backers are whistling past the graveyard of the faulty promise: The industry that brought you the Exxon Valdez and the BP Deep Water Horizon Disaster can pierce, inject below and dump over our aquifers a toxic cocktail of chemicals… and never mess up.

Cleantech executives and investors who still think that simple business execution alone will get us to scale should look at ExxonMobil’s storied, extensive use of influence peddling ($4.2 million in reported lobbying in Q1 alone), disinformation and front groups to further its interests.

In order to scale clean energy to where it can and should be, you’re going to need good business execution and a much greater investment in public positioning and advocacy. We’re on the playing field with guys who hit pretty hard. We’re threatening their profits. Don’t expect them to sit there and leave you alone.

Image: photo-oasis via Shutterstock

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

2 Comments

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Allen Gerhardt
Allen Gerhardt
May 8, 2012
Once the increased use of natural gas is tied in to NG cars and utilities, the prices for gas will go up and then it is the same old captive market to fuel costs as before. And who is left to pay for all the damages? The tax payers must choose between superfund money or social security. Natural gas is a bridge to a wasteland.
James Davis
James Davis
May 2, 2012
It seems the whole East coast is caught in the waste fluid - hooked line and sinker, of the great ability that natural gas will get us away from foreign oil and usher in a new clean, green, environmental source of power --- natural gas. In West Virginia the commercials for natural gas says that the fracking fluids are safe around your drinking water and will not harm the environment, while at the same time creating thousands of safe good paying jobs that will supply the world with a clean source of power. The idiots here, our government, suck that false information up as if it is more holy than the bible itself, and they are convinced that any scientist who say different is crazy and don't have the best interest of the state and want to take away our jobs. Exxon knows where all the idiots are that will back up anything they say. How do you fight stupidity like that? West Virginia even lets them drill for natural gas anywhere they want with no restrictions.

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Mike Casey

Mike Casey

Mike Casey is the President and founder of Tigercomm, a leading U.S. cleantech PR firm with offices in Arlington, VA and San Francisco, CA. He uses his 28 years of experience in communications to counsel cleantech executives and investors....
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