Co-op America: Tell Exxon: Use your massive profits for cleaner energy!

As gas prices spiral upward, ExxonMobil posted record profits for 2007: an astounding $40.6 billion in profits based on $404 billion in sales, and it looks like they are headed for obscene profits again this year, with $10.9 Billion in profits reported in just the first quarter of 2008. Exxon defends these profits by saying they spent $80 billion on developing energy sources between 2002 and 2006, with an additional $20 billion planned for 2008. However, almost none of this development money is going to renewable energy research and development that will break our oil addiction and create a secure and green energy future for the US.

Instead, Exxon is ramping up its oil exploration and drilling, and even worse, is looking to expand its leadership in exploiting Canada’s tar sands. According to the company’s website: “ExxonMobil's syncrude tar sands facilities in Alberta, Canada is (sic) the largest in the world, producing about 225,000 barrels of crude oil a day. An expansion is underway … to increase production capacity by 40 percent.” The mining and processing of tar sands is highly destructive to the local environment and is an enormous generator of greenhouse gas emissions.

Compare that to Texas oilman T. Boone Pickens who recently announced that he was investing $10 billion to build one of the world’s largest wind farms. Pickens is joining a growing wave of investors who are see renewable energy as the smart choice that will create profits and a greener world.

Exxon’s own investors are increasingly in agreement. Last year, a record 31% of Exxon’s shareholders supported a resolution asking Exxon to reduce its greenhouse gas emissions. ExxonMobil admitted in 2007 that its climate emissions actually rose 5% in the prior year. This year, shareowners are filing five climate-related resolutions on 1) greenhouse gas reduction targets, 2) renewable energy research and development, and 3) energy independence, 4) climate change impacts on the world’s poor, and 5) separation of Chair and CEO , which would create more independent oversight of the company and its role in creating climate change. Several of these resolutions were filed by members of the Rockefeller family, the founders of Exxon-predecessor, Standard Oil.

Take action now to let Exxon know that as a consumer and investor, you think Exxon should shift its massive profits away from tar sands and oil, and increasingly to renewable energy.

Subject: Climate Change comment for Exxon’s Board

Dear Rex Tillerson, CEO, and Henry Hubble, Vice President, Investor Relations and Corporate Secretary

As a consumer and investor who is alarmed about the role Exxon is playing in producing greenhouse gases, I’m writing to express my concerns about your company’s plans to increase oil exploration and production, and in particular, Exxon’s plans to expand your operations in the tar sands of Alberta. The impacts of climate change are increasingly evident, and while your company has made a step forward by ending your denial of climate change, your actions betray your words and place you squarely on course to accelerate the worst impacts of global warming. While ExxonMobil may be earning record profits now, your failure to invest in clean energy sources puts your company at risk and keeps the US on a path of energy dependency and increasing climate emissions. Exxon needs to: 1. Develop and implement an aggressive plan to cut Exxon’s carbon emissions by 80 – 90% by 2050. 2. Invest in research, development and large-scale deployment of clean, non-toxic, renewable energy resources that will replace your company’s dependence on oil. 3. End your plans to expand tar sands operations in Alberta, and work to replace these operations with clean sources of energy. 4. Provide relief to low-income families hard-hit by oil and gas price increases, and take responsibility for climate change impacts on the world’s poor. 5. Stop impeding, and instead, start supporting a U.S. energy security and carbon regulation policy. 6. Separate the positions of Chair and CEO in order to create more independent oversight of the company and its role in creating climate change. This will open the door for Exxon to be part of the solution. A growing number of investors are seeing the risks of climate change and are investing in renewable energy technologies. Exxon needs to join them. I urge you to use your vast profits to help create a clean and secure energy future for the US.

Yours sincerely,
Your Name
Your City and State

Here's who has sent the letter to ExxonMobil and what they think ExxonMobil should do with their massive profits.

— Anonymous in Chickasaw, AL says, "fund eco-friendly energy technology research "

— suzy in ann arbor, MI says, "invest in sustainable energy and environmental conservation"

The views and opinions of expressed in postings above do not necessarily state or reflect those of Co-op America. We ask participants to keep their comments respectful in tone.