ExxonMobil's long track record with lithium-ion batteries

ExxonMobil Chemical is involved in developing battery separator film technologies. What I didn’t realize was that Exxon has 20 years experience in lithium-ion battery technology. Melissa Stark, a senior executive with Accenture Energy Strategy’s London office, brought this to my attention during a Jan. 27 media roundtable in Houston.

Stark was in Houston to discuss a report she wrote, “Betting on Science—Disruptive Technologies in Transport Fuels.” That report identifies 12 technologies having the potential to disrupt current transportation fuel supply and demand in the next 10 years.

Separator films are used in personal electronics devices and also support the development of future lithium-ion battery applications in hybrid-electric and electric vehicles. TonenGeneral of Japan is an ExxonMobil affiliate and one of the world’s largest producers of separator film for lithium-ion batteries.

Accenture’s study notes that transport fuels account for about 50% of global primary oil consumption and up to 30% of global carbon dioxide emissions.

When it comes to electrification of vehicles, only lithium-ion batteries currently can provide the necessary power density required for plug-in electric vehicles, Stark said. “However, lithium is expensive, combustible, and scarce,” she said, noting only 11 major producing countries.

International oil companies have dominated the transport fuels industry for decades. Interestingly, Stark sees utilities and battery manufacturers as key players in future transport fuels.

“Utilities have the capital strength and a distribution infrastructure that could make cars running on electricity a reality,” she writes in her report. “Many lithium-ion battery manufacturers are also large global players.”

ExxonMobil: Industry committed to cutting GHG emissions

ExxonMobil ran an advertisement in the Dec. 21 Wall Street Journal about the oil industry's commitment to cutting greenhouse gas emissions.

Entitled "Fuel for thought," the ad states that the oil and gas industry invested more than $58 billion in low-emissions technologies from 2000-08.

"That's 44% of the total spent by all US industries and the federal government combined," the ad stated.

In a recent speech in Qatar, ExxonMobil Production Co. Pres. Rich Kruger noted that the oil and gas industry "must commit to taking on the dual challenge of meeting the world’s growing energy needs while reducing the growth of greenhouse gas emissions."

The International Energy Agency and many others predict that the world’s total energy demand will increase by as much as 30-40% in 2030 compared with 2007.

"Growing populations and developing economies will require more of the energy we produce today and the energy we will be expected to produce tomorrow," Kruger said. "But our industry has faced significant challenges before. And each time we have shown that the key in times like these is to maintain a long-term view and focus on the fundamentals."

"Within ExxonMobil, we are demonstrating our commitment and endurance by pursuing plans to invest $25 billion to $30 billion annually over the next 5 years on energy projects," Kruger said. "These are record investment levels for us. We are able to confidently pursue these plans based on our long-term view of industry fundamentals, and financial discipline, in good times and bad."

He believes the world needs to develop all sources of energy, hydrocarbon and other, when and where they are economically competitive.

"With this perspective, the best way for us to meet future demand and help curb greenhouse gas emissions is to continue to invest in new technologies," Kruger said, calling the energy industry "one of the most technologically advanced industries in the world."

Gas flaring reduction efforts progressing

The World Bank-led Global Gas Flaring Reduction partnership (GGFR) reports the global estimate for gas flaring has declined for a third consecutive year.

GGFR helps countries and companies to both implement gas-flaring reduction projects and seize opportunities to increase the utilization of associated gas.

“Our work in different countries, from Russia to Azerbaijan and from Nigeria to Mexico, illustrate this common effort of preparing for potential opportunities to improve energy efficiency, expand access to energy, and contribute to climate change mitigation hence promoting sustainable development,” GGFR said in a newsletter posted on its web site.

In December 2008, the GGFR held a Global Forum on Flaring and Venting Reduction in Amsterdam. Some 175 delegates from over 100 different organizations and 38 countries attended the Amsterdam event.

Numerous oil companies helped sponsor or sent delegates and speakers to the conference; They included Royal Dutch Shell PLC, Total SA, Chevron, ExxonMobil Corp., BP PLC, StatoilHydro ASA, and Petrobras.

Energy’s buzzwords are changing

Part of my job as an Oil & Gas Journal reporter is to watch alternate energy sources evolve into commercial ventures. Clean technology used to be a common phrase among analysts, but another phrase appears to be in the making.

Michele Ashby, a former mining analyst and chief executive officer of MINE LLC, organizes investor meetings, including one called the Modern Energy forum. Modern energy is an umbrella term for all types of energy that will be needed in the future, Ashby said during a recent telephone call from her Denver office.

“This includes solar, wind, wave, hydro, biofuels, biomass, geothermal, nuclear, magnetics, energy storage, conservation, and new ways of generating and conserving energy we have yet to discover,” Ashby said.

Increasing demand for modern energy means venture capitalists and angel investors are asking for more information about what is available, how much it costs, and its carbon footprint, she said.

How are fossil and nonfossil companies and investors learning about one another? Through conferences and green energy networking events, Ashby said. She said Denver has 14 different organizations for green networking.

Ashby believes oil companies will help integrate nonfossil fuels with existing fuel distribution and marketing systems. She foresees more oil companies investing in and collaborating with modern energy companies.

A recent example is ExxonMobil Corp.’s $600 million investment into the development of algae-based biofuels. About half of that money goes toward internal expenses within ExxonMobil and half goes to Synthetic Genomics Inc.

The initial collaboration, expected to last 5-6 years, will study methods of growing algae and producing hydrocarbons that can be processed by a refinery into transportation fuels.

“Modern energy is a new market place with thousands of private companies and a few hundred public companies,” Ashby said. “Oil and gas companies have got the money to invest.”

ExxonMobil reports zero marine oil spills in 2008

ExxonMobil Corp. reports zero spills from ExxonMobil-operated and long-term chartered marine vessels in 2008. That is quite a contrast from the 1989 Exxon Valdez tanker spill in Alaska’s Prince William Sound.

The single-hulled tanker ran aground on Bligh Reef off Alaska, spilling 270,000 bbl of crude. Consequently, Congress passed the 1990 Oil Pollution Act requiring tankers operating in US waters to have double hulls.

ExxonMobil’s recent marine performance statistics was part of the company’s 2008 Corporate Citizenship Report. The company notes that its marine affiliates continue to provide safe, secure, and reliable marine transportation.

Marine affiliates of ExxonMobil help develop voluntary industry initiatives, including implementation of the Oil Companies International Marine Forum’s (OCIMF) Tanker Management and Self Assessment, a best practice guide for ship operators.

ExxonMobil said it’s committed to preventing spills from all its operations. The number of spills greater than 1 bbl in 2008 was down by over 60% since 2001. ExxonMobil’s total volume of hydrocarbons spilled in 2008 was about 20,000 bbl, most of which was recovered at the site of the spill.

ExxonMobil funds weatherization training

Oil companies understand efficiency, and they spend a lot of money making their own operations as energy efficient as possible. Now, ExxonMobil Corp. donated $5 million to the National Community Action Foundation (NCAF) for weatherization worker training programs.

It’s the largest private contribution to community organizations that work with the US Department of Energy's Weatherization Assistance Program, said David Bradley, NCAF executive director.

“Weatherization has become quite a hot topic,” Bradley said, adding that weatherization job training will help provide workers with skills that they can use for sustainable, life-long careers.

The recently passed American Recovery and Reinvestment Act increases funding for the Weatherization Assistance Program. Bradley said NCAF and ExxonMobil already were discussing a partnership before weatherization was included in the economic stimulus package President Barack Obama signed Feb. 17.

Sherman Glass, president of ExxonMobil Refining & Supply Co., said “energy efficiency and economic development go hand in hand.” He noted that ExxonMobil plans to spend $500 million “over the next few years” improving energy efficiency at its own operations worldwide, both upstream and downstream.

The Obama administrative wants to see 1 million low-income homes/year receive weatherization.

Established in 1976, the DOE's Weatherization Assistance Program enables low-income families to permanently reduce energy bills by improving energy efficiency in their homes. Since its inception, more than 6.2 million homes have been weatherized. In 2008, the program helped create 21,000 jobs.

ExxonMobil's fire drills and flu drills

Oil companies routinely test employees at various operating sites to measure their emergency preparedness for a wide range of possible scenarios.

ExxonMobil Corp. periodically conducts emergency response drills on simulated spills, fires, explosions, natural disasters, and security incidents. In 2007, it ran drills in Bermuda, California, Cyprus, the Gulf of Mexico, Malaysia, and Sakhalin Island.

In addition to these scenarios, ExxonMobil also conducts drills and workshops worldwide to evaluate its readiness in case of a global influenza pandemic.

“Flu pandemics are very different than the seasonal flu that we all experience each year,” the company said on its web site. “While as much as 20% of the population of any country develops influenza during seasonal flu epidemics, less than one in 100 individuals will be hospitalized and less than one in 1,000 will die.”

But a global flu pandemic would involve a new virus, and it is estimated that up to 35% of the population could become ill, ExxonMobil said. A highly virulent pandemic flu could kill millions, and it could last for 12-18 months.

This gives new meaning to flu season and emergency preparedness.