Today the shareholders at Exxon Mobile meet to discuss the future of their investments into the development of alternative energy sources. Of course, company management does not think it to be a profitable endeavor and will discourage shareholders from proposing such investments, citing them as unprofitable and unnecessary.
In it’s yearly proxy statement Exxon said “The corporation’s traditional business areas remain critical and promise far greater value than renewables, which currently lack the scale and economic competitiveness of our core business opportunities”. It makes sense that a company that specializes in fossil fuel production and distribution would make this statement, but the portion regarding the scale and economic competitiveness is somewhat true, unfortunately. The possibility that Exxon’s shareholders could decide to invest in more R&D would be a monumental business move in the green direction, but still looks unlikely. It’s just progressive that they’re even bringing it up at the meeting!
With over $300 billion in sales in 2006 and record profits in the last quarter of 2006, Exxon mobile has the revenue and means to research and develop many types of alternative energy…so here’s hoping the shareholders think of the world as well as their pocketbooks.
Just as an update to this story, Exxon elected in their meeting to not invest in altermative energy yet again.
No surprise. There is no business incentive to invest in alternate energy, given that today, oil just an amazing gold cow and will continue to grow, given the fact, demand is growing. Supply is steady and possibly growing, for the next few years.
I wish the public and government do what it takes to fund research of gree technologies. The private sector will not do it unless it makes econoomic sense.
Right. If only someone would do some independent research and figure out for companies whether or not it will be profitable for them to go green, and then present that information to the companies, perhaps we will see more eco-driven business actions. Actions that would be based on sound business principles and would even make the shareholders happy because it will fatten their wallets.
The ExxonMobil President last year said that he lives 15-20 years ahead and does not see that anything would change, therefore renewables would still be in 1-2% of total energy and this does not pay for serious investment. I would like to convey to him and others in energy business that there is a breakthroughs that would allow to harvest energy of Gulf Stream. The 100 mile stretch from Miami to Palm Beach in 30+ years from now would satisfy about 60% of the entire country energy needs. If anybody would be interested we will be glad to provide brief information on the system for harvesting energy of ocean current.