Moderator: Good Afternoon and welcome to Viewpoint! Today we have Ken Cohen, Vice-President Public Affairs of ExxonMobil, with us to discuss sustainability and meeting global energy demand. Let's get started!

Ken Cohen: Hi everyone. Thanks for joining us. I look forward to your questions.

_______________________

Laguna Beach, Calif.: How do you, as a petroleum based business, intend to sustainably address global energy demand, which seems to demand petroleum alternatives?

Ken Cohen: The key to addressing sustainability is balancing economic growth, social development and environmental protection. There is no one perfect solution to the energy challenge -- how to supply the energy we all need for economic growth and managing greenhouse gas emissions. For now and the forseeable future, we're going to need an integrated set of solutions. And that means all reliable, environmentally sound energy options.

_______________________

Yardley, Pa.: Hi Ken, If you had to design a long term energy policy for the United States what would it look like and what sources of energy would be employed?

Ken Cohen: Most experts agree that oil, natural gas and coal will continue to provide the vast majority of the world's energy needs -- meeting close to 80 percent of global energy demand through 2030. Renewable energy sources, such as wind, solar and biofuels will grow rapidly and should increasingly be an important part of the mix.
So, energy policy needs to start from this reality. Energy policy should recognize there is no one perfect solution and for the foreseeable future an integrated set of solutions is required. Solutions range from producing traditional fuels more effectively, using them more efficiently and with lower environmental impact, improving existing alternative sources of energy and developing new options.

_______________________

New York, N.Y.: Mr. Cohen, I am a student of Columbia University studying climate change and development issues. I was wondering if CEO Tillerson's call for a carbon tax back in January in the Wall Street Journal represents a decisive shift in Exxon-Mobil company policy? In other words, is Exxon-Mobil moving away from denying the reality of anthropogenic climate change to cooperation with the rest of the private, public, and NGO sectors in developing a broad-based and globally scaled strategy to reducing carbon emissions?

Ken Cohen: To begin, climate change is an issue we take seriously and believe responsible steps should be taken to address the risk. We didn't believe the Kyoto Protocol was an effective solution to reduce global emissions, but that doesn't mean we aren't concerned about climate change.
We believe a revenue-neutral carbon tax is a more efficient policy option to reduce emissions. And to your point, it's more able to be applied on a global basis than a cap and trade system. We should not be creating a complex derivatives market for a new commodity called an "emissions allowance" as the recent financial crisis demonstrates.
There is no need to create an opportunity for traders to extract profits from a trading system.
Combined with advances in energy efficiency and new technology, a well-designed carbon tax could play a significant role in addressing the challenge of rising emissions.

_______________________

Houma, La.: How do you see your role in increasing exploration and production in the Gulf of Mexico? Less imports means more oil for the rest of the world. We should increase our own sources right here in the US.

Ken Cohen: We agree. Over the next 20 years accessing US resources now off limits could create as many as 160,000 new jobs and generate about $1.7 trillion in federal, state and local government revenues. We access resources today around the world in an environmentally responsible manner and there's no reason why it can't be done in areas currently off limits in the US.

_______________________

Greensburg, Pa.: What part will natural gas play in the increasing energy demand? Is the LNG distribution restrictive of this?

Ken Cohen: Natural gas will be the fastest growing conventional source of energy -- growing by more than 50 percent by 2030. Much of that gas will be used for electricity generation because not only is gas an efficient fuel source, it produces fewer greenhouse gas emissions than coal. By 2030, we believe LNG supplies will triple and will become more of a global commodity as demand increases and remote supplies make their way to distant markets.
This is good news for energy security and diversity because technology is unlocking supplies of cleaner-burning natural gas that were previously unavailable. This is why we're a leader in LNG and developing new technologies to make more gas available.

_______________________

St. Augustine, Fla.: My family has owned stock in ExxonMobil since it was Standard Oil. However, I was very disappointed to hear that the company has recently resisted the idea of "corporate responsibility" and diversification into sustainable energy. Does ExxonMobil plan to make any effort at all to become a "green company"?

Ken Cohen: We try very hard to be a good corporate citizen and take our responsibilities seriously. I wish I had the time and space here to go into detail about everything we're doing to reduce our own emissions and help consumers of our products do the same.
Our strategy for alternatives and low-emissions energy technologies is two-fold. First, we've developed a variety of technologies that are available today to enable consumers to reduce their environmental footprint. Use of these technologies by one-third of the US vehicles would translate to a savings of about 5 billion gallons of gasoline and greenhouse gas emissions savings equal to taking about 8 million cars off the road.
Second, we're working on new technologies for the mid- and long-term that will address the need for both improved efficiency and reduced emissions. Examples include improved lithium battery separator film, advanced engine technologies and a technology for separating carbon dioxide from natural gas.
I hope you have an opportunity to read our new Corporate Citizenship Report on our website. A link is on this page to the right. Or you can go to www.exxonmobil.com/citizenship

_______________________

Seattle, Wash.: At what point might you consider repaying what you ought to have paid for the ExxonValdez mess, and will you reconsider your current policy of avoiding responsibility for your environmental impacts to wetlands, streams, river systems, and the oceans?

Ken Cohen: I am sorry but your statement is not correct. The Valdez spill was a tragic accident. We took immediate responsibility for the spill, cleaned it up and stayed with it until was declared complete by the State of Alaska and US Coast Guard. We have spent more than $3.8 billion (which includes recent punitive damages payment) in compensation, cleanup, settlements and fines. Today, the ecosystem in Prince William Sound is healthy, robust and thriving, according to many studies carried out by experts in this area.

_______________________

Palatine, Ill.: There are mountains of information (http://www.theoildrum.com) showing a peak in global oil production having already occurred or occurring in the immediate future.

The enormous impact this will have on the global economy and people's lives in general begs the question: what is the largest oil company in America doing to prepare itself, and us for tomorrow? And a 10MW wind farm is not planning for the future.

Ken Cohen: I would recommend you consult a study by the National Petroleum Council, which was developed by a variety of stakeholders including government, NGOs and industry. Ample supplies of oil and gas exist around the world. The challenge is access to these resources. ExxonMobil and the industry have the technology to produce these resources if provided access.
Successive estimates by the US Geological Survey of the global oil resource base have continued to increase and indicate that peak production has not been reached.
Why? The reason is that technology advances have made it possible to find and develop more resources.

_______________________

Washington, D.C.: Articles on the future of energy generation almost always begin with the premise that energy needs will increase. Isn't it true that many households, businesses, and states (California, I think) have actually managed to decrease energy usage through conservation and technological means. Estimates of automobile miles driven must have taken a hit when gas prices spiked, showing that declines are possible. Can more of the thinking about future needs incorporate numbers reflecting voluntary or mandated conservation?

Ken Cohen: To help us prepare for the future energy marketplace, each year we produce our Energy Outlook, which is a broad, indepth look at the long-term global trends for energy demand and supply. You can find it on our website at www.exxonmobil.com/energyoutlook. This includes an assessment of the impact of energy demand on carbon dioxide emissions.
You are correct. Our outlook assumes increasing efficiency in energy production and use. In the US and EU for example, we see declining demand for gasoline in coming years.
Because of energy efficiency improvements, the rate of global energy demand growth from 2005 to 2030 will be about two-thirds of that experienced in the prior 25 years. That means daily demand will be lower in 2030 by approximately the energy equivalent of 50 million barrels of oil than it would have been otherwise.
The real drivers of energy demand growth over the next quarter century will be population and economic growth in the developing world as living standards improve.

_______________________

New York, N.Y.: Your video speaks about the great potential of technology to address energy needs. Where do you see technology improvements having the greatest impact on energy demand and environmental impact over the next ten years?

Ken Cohen: Given the dual energy challenge of meeting growing demand and reducing emissions, we are going to need to continue to develop technologies to access more energy resources and produce and use energy more efficiently.
We are active in all of these areas -- ranging from new ways to find and develop traditional resources to supporting research into new technology breakthroughs in areas such as second-generation biofuels, hydrogen and solar.

_______________________

Moderator: That's all we have time for for today. Thanks so much for joining us!

Ken Cohen: We're out of time. I'm sorry we couldn't get to everyone, but thanks for participating.

_______________________