The introduction of new technologies including horizontal drilling and hydraulic fracturing have not only changed the energy and economic landscape, according to Rex Tillerson, they are also helping to positively influence public discussions about energy issues.
“The public and policymakers are becoming increasingly aware that technological advances in the industry sector offer the greatest hope to meet our shared aspirations,” said Tillerson, chairman and CEO of ExxonMobil.
Discussing “The Turning Point for the Oil Industry” at the IHS CERAWeek 2015 conference held recently in Houston, Tillerson said economic and environmental contributions from new technologies have undeniably tapped the potential to reach out to the public and policymakers with greater confidence and credibility.
“Simply put, we have shown just a fraction of what scientific and engineering advances can mean for the safety and progress of society,” Tillerson said. “We must remind the public and policymakers it is our sustained investments that develop the innovations that enable safer, more secure and increasingly efficient production and use of energy and environmental resources. ”
Noting current U.S. energy, environmental and trade policies must be adapted and updated, Tillerson outlined four distinct areas he believes would recognize and encourage North America’s “science, engineering and entrepreneurial daring that has redefined the modern energy landscape.”
First, Tillerson said, the U.S. government needs to recognize advanced technologies and techniques have been thoroughly tested and proven viable.
“We have shown it possible to confidently open access to new energy resources and for the public and policymakers to know our industry will work to ensure our footprint is minimized and the environment is safeguarded,” he said, specifically citing positive conclusions of the Arctic Research Study. “The political challenge will be to act on the collaborative, science-based findings of the study and open the U.S. Arctic to field-proven technologies and cutting-edge techniques.”
Next, said Tillerson, it is necessary for the U.S. government to promote free trade in natural gas and crude oil, as it does in other trades sectors.
“Whether we are talking about the export of liquefied natural gas (LNG) or ending the ban on crude oil, the economists and leaders from across the political spectrum agree free trade in energy will lead to increased investment, increased job creation and increased energy production,” he said. Allowing LNG exports would also further reductions in greenhouse gases and pollution in Asian countries that are increasingly turning to cleaner-burning natural gas.
Third on Tillerson’s agenda is the need for governmental approval of “critical infrastructure projects.” Specifically citing the Keystone XL pipeline, Tillerson said the benefits would not only deliver northern oil to refineries in the Gulf Coast but also improve U.S. competitiveness and North American energy security.
Finally, Tillerson stressed the need for transparency and certainty in the U.S. regulatory process.
“The political machinations that have delayed the Keystone XL pipeline are the poster child for a much deeper problem hindering progress and advancement in this country,” he said, adding regulatory complexity “increasingly burdens companies and investors with expensive delays, onerous reworks, unnecessary duplication, and extended and costly legal wrangling.
“It is a fundamental tenet of good government that leaders and policymakers provide a clear and certain pathway to regulatory compliance. We need that today as much as ever.”
For more information, visit www.exxonmobil.com or call (972) 444-1000.
