2002 Business Climate Economic and Energy Outlook

1
Energy The Challenges of Education and
Advocacy
Mike Roman Exxon Mobil Corporation Public
Affairs April 7, 2008
2
Discussion

• Petroleum in Perspective....
• Prices....
• Politics....
• Process....

3
Petroleum in Perspective

• About 150 years ago first U. S. oil well
• Fortunes made and lost - 10 per bbl oil Jan
  1861 10 cents per bbl June 1861
• Industrialization and transportation drive
  consumption in early 1900s
• Prices rise entrepreneurs look for alternative
  energy sources
• Wars fought over energy supply
• History repeats itself....

In 2003 we achieved a company record for the
fewest oil spill incidents.
4
Prices

• Prices are a function of supply and demand -
  speculation and general commodity price levels
  are factors.
• Price volatility not just high prices - draws
  media and political attention to energy issues
• Consumers, despite their desire for
  transportation independence, want lower fuel
  and general energy prices.
• The price of energy is an emotional issue
• One size / response wont fit all

5
Politics

• Energy issues are a lightning rod for political
  attention transcend multiple sectors and
  interests
• Lawmakers want to help their constituents
  really they do...
• They need to understand energy dynamics we need
  to help them understand the issues to make
  informed decisions on renewables, alternate
  energy, climate change
• But the discourse is in an emotional context
  energy is not usually discussed unless price is
  an issue
• Need to respond to multiple constituencies drives
  multiple sometimes inconsistent legislation
  and regulation

Hoover Diana Platform - Gulf of Mexico
Hoover Diana Platform - Gulf of Mexico
6
Process

• How to educate and advocate....
• Our people one of our greatest resources...
• Ensure they have knowledge and tools to
  communicate
• Citizens Action Team Speakers Bureau
  grasstops/roots efforts
• Our Consumers the people who depend on us...
• Ensure they understand our business what energy
  means for them
• Op-Eds, Annual Reports, Corporate Citizenship
  Reports

7
Process

• How to educate and advocate....
• Our lawmakers and officials the people who
  represent us...
• Ensure they and their staffs have knowledge
  understand our business no surprises
• Ensure they have access to our experts
• Leverage all the communication tools
• Leverage all contacts inside the industry
  outside
• Recognize multiple interests, constituencies ?
  demands

8
Process
Recognize complexity of issues GCEP- Researching
commercially viable energy technologies that can
substantially reduce greenhouse gas emissions
The problems we face are extraordinarily complex
in scope and scale. No one university, no single
company, not even a single country can solve them
all. Thats why this project is important.
John Hennessy, Stanford University President

• 225 million over 10 years from - ExxonMobil -
  General Electric - Schlumberger - Toyota