Inside Exxon’s Strategy to Downplay Climate Change
Internal documents show what the oil giant said publicly was very different from how it approached the issue privately
An Exxon Mobil plant in Baytown, Texas Sept. 14, 2023 at 5:30 am ET
Mobil issued its first public statement that burning fossil fuels contributes to climate change in 2006, following years of denial. In public forums, the company argued that the risk of serious impact on the environment justified global action.
Yet behind closed doors, Exxon took a very different tack: Its executives strategized over how to diminish concerns about warming temperatures, and they sought to muddle scientific findings that might hurt its oil-and-gas business, according to internal Exxon documents reviewed by The Wall Street Journal and interviews with former executives.
https://www.wsj.com/economy/central...ion-sept-19243b7e?mod=article_whats_news_pos2
The documents reviewed by the Journal, which haven’t been previously reported, cast Tillerson’s decadelong tenure in a different light. They show that Tillerson, as well as some of Exxon’s board directors and other top executives, sought to cast doubt on the severity of climate change’s impacts. Exxon scientists supported research that questioned the findings of mainstream climate science, even after the company said it would stop funding think tanks and others that promoted climate-change denial.
ADVERTISEMENT
Exxon is now a defendant in dozens of lawsuits around the U.S. that accuse it and other oil companies of deception over climate change and that aim to collect billions of dollars in damages. Prosecutors and attorneys involved in some of the cases are seeking some of the documents reviewed by the Journal, which were part of a previous investigation by New York’s attorney general but never made public.
One of the lawsuits is from Hawaii’s Maui County, where wildfires killed more than 100 people in August. The lawsuit, filed in 2020, alleged the island faced increased climate-related risks, including more dangerous wildfires, caused by fossil-fuel companies. Some of the lawsuits may go to trial as soon as next year.
“I know how this information looks—when taken out of context, it seems bad,” Exxon CEO Darren Woods said in response to the Journal’s inquiry about the documents. “But having worked with some of these colleagues earlier in my career, I have the benefit of knowing they are people of good intent. None of these old emails and notes matter though. All that does is that we’re building an entire business dedicated to reducing emissions—both our own and others—and spending billions of dollars on solutions that have a real, sustainable impact.”
Under Woods, who became CEO in 2017, Exxon has committed to spend $17 billion over five years on emissions-reducing technologies. Exxon didn’t address detailed questions sent by the Journal.
Tillerson declined to comment through a representative.
Exxon turned millions of pages of documents over to the New York attorney general during that office’s yearslong investigation, announced in 2015, into whether the company misled investors about the impact of climate regulation on its business. The Journal reviewed summaries of the documents that Exxon’s lawyers had determined were the most significant. After the attorney general narrowed the focus of the case, the documents weren’t made public.
The documents summarize emails between top executives, board meetings and Tillerson’s edits of speeches, among other things.
After a nearly three-week trial in 2019, Justice Barry Ostrager of the New York State Supreme Court ruled the New York attorney general failed to prove its case.
“Nothing in this opinion is intended to absolve Exxon Mobil from responsibility for contributing to climate change,” Ostrager wrote.
Throughout Tillerson’s tenure between 2006 and 2016, Exxon executives in their internal communications attempted to push back against the notion that humans needed to curtail oil and gas use to help the planet—despite the company’s public statements that action was needed.
In 2012, after the pre-eminent scientific authority on climate change warned of global calamity if carbon emissions continued unabated, Tillerson disagreed and directed Exxon researchers to “influence” the group.
As pressure mounted to stop drilling in the Arctic due to rapid glacial melting and other environmental impacts, Exxon fretted about a key project in Russia’s far north and worked to “de-couple climate change and the Arctic.”
July 2013
Exxon’s deal to explore the Arctic with
Russia’s Rosneft came amid growing
public concern about melting polar ice
caps. In an email discussion with other
executives about how to protect the
project, a corporate issues
adviser wrote:
“
As this shapes up, part of the moral
argument for leaving the Arctic alone
will be based on this notion that it is
fundamentally unjust for the people
who prompted the ice melt to then
profit from development. It’s one
reason I think we will need to push
back hard- albeit in a nuanced way-
against this notion that the whole area
is ‘pristine’ and untouched by the hand
of man.”
“The general perception is that Tillerson was softer and stopped funding the bad guys” that were espousing climate change denial, said Lee Wasserman, the director of the Rockefeller Family Fund, a charity that partly focuses on environmental issues. “This is the first X-ray into Tillerson’s head and shows he wanted to throw climate mitigation off the rails. It’s obituary-changing.”
The fund has issued grants financing litigation and other support for around two dozen cases against Exxon, whose predecessor, Standard Oil, was founded by family patriarch John D. Rockefeller. The fund has invested millions of dollars in a broader campaign against big oil companies.
A polar bear crosses sea ice in the Arctic Ocean. PHOTO: ANGELA OWENS/THE WALL STREET JOURNAL
Seminal warning
A study published earlier this year in the journal Science determined Exxon’s climate modelers had predicted warming temperatures with precision since the 1970s, in line with the scientific consensus. The study was funded, in part, by a grant from the Rockefeller Family Fund.
In the summer of 1988, NASA scientist James Hansen issued what’s now seen as a seminal warning on climate change when he testified before Congress that Earth was warming dangerously and humans were causing it.
Frank Sprow, then Exxon’s head of corporate research, sent a memo to colleagues a few months later articulating what would become a central pillar of Exxon’s strategy.
“If a worldwide consensus emerges that action is needed to mitigate against Greenhouse gas effects, substantial negative impacts on Exxon could occur,” wrote Sprow. “Any additional R&D efforts within Corporate Research on Greenhouse should have two primary purposes: 1. Protect the value of our resources (oil, gas, coal). 2. Preserve Exxon’s business options.”
Sprow’s memo was adopted by Exxon as policy, he said in a recent interview.
Exxon stopped most internal climate research, instead funding it through university and research organizations, Sprow said. Exxon’s corporate research division was redirected from broader scientific study to focus on “science to support our business.”
Sprow said he and former Exxon CEO Lee Raymond acknowledged the climate was changing but questioned to what extent human activity was causing it and how serious and rapid the impacts would be. The January study in Science said that Exxon’s climate modelers mostly attributed the changes to humans.
Lee Raymond in 2005. PHOTO: NICHOLAS KAMM/AGENCE FRANCE-PRESSE/GETTY IMAGES
Martin Hoffert, who worked as a consultant to Exxon on climate science in the 1980s, said Sprow’s memo sent another message: “It’s an oblique way of saying we’re in the oil business and we’re not going to get out of the oil business, and we’ll do everything we can to make money on the oil business.”
By the time Tillerson became CEO in 2006, Exxon’s positions on climate change had become a public-relations nightmare, according to Sprow, who retired from the company in 2005.
ADVERTISEMENT
Public shift
Exxon’s public shift on climate change came after the Royal Society, a British scientific academy, criticized the company for spreading “inaccurate and misleading” views on climate science in 2006. Exxon responded in a letter that it recognized “the accumulation of greenhouse gases in the Earth’s atmosphere poses risks that may prove significant for society and ecosystems.”
An Eagle Scout and a civil engineer by training, Tillerson spent his entire career at Exxon before becoming CEO in 2006. He left in 2017 to become then-President Trump’s Secretary of State.
His views on climate change were influenced by the previous generation of Exxon executives, said former company executives who worked with him. During his tenure, Tillerson took little action to curb the company’s emissions and instead believed the onus was on governments to push companies to address climate change, they said.