Ghana made a significant step forward
in its upstream oil extraction. A significant step forward because Ghana was
able to get ExxonMobil to help in the extraction of oil in Ghana. ExxonMobil is
very huge in the upstream oil business. ExxonMobil is the largest of the world’s
Big Oil companies. Big Oil is a term used in describing the world’s six largest
publicly owned oil and gas companies. And ExxonMobil is the largest of the six!
Another term used for the top six oil companies is supermajors. The Big Oil
companies are:
- BP plc.
- Chevron Corporation
- Royal Dutch Shell plc.
- ExxonMobil Corporation
- Total SA
- Eni SpA
AGREEMENT
The government of Ghana on January 18,
2018 signed a petroleum agreement with ExxonMobil. The agreement technically
gives ExxonMobil exploration and production rights and access to a block at
Deepwater Cape Three Points. Cape Three Points is located between coastal
village of Dixcove and the town of Princes Town in the western region of Ghana.
The size of the block is about 366,000 acres (1482 sq. kilometers). The block
is located 57 miles (92 kilometers) off the coast of western Ghana. Subject to
parliamentary approval and the getting of a local partner by ExxonMobil, exploration
activities should start later in 2018. Percentage interest in the agreement is
as follows:
- ExxonMobil- 80%
- Ghana National Petroleum Corporation (Government of Ghana) - 15%
- Local partner- 5%
PROFILE
ExxonMobil is a merger of two
companies. The two companies were Exxon and Mobil. Both companies were descendants
of the famous millionaire John Davidson Rockefeller’s Standard Oil Company. The
two companies, Exxon and Mobil became ExxonMobil on 30th November
1999. The three main areas of operation are:
- Upstream- This area accounts for about 70% of ExxonMobil’s total revenue. This area deals with oil exploration, extraction, production etc.
- Downstream- This area deals with the marketing of products like gasoline (petrol) etc.
- Chemicals- This area deals with chemicals like solvents, adhesives, nail removers etc.
BILL OF GREEN HEALTH
We are in an era that is getting increasingly sensitive to
environmental degradation. Also, people are getting increasingly aware of the
notoriety of fossil fuel in the degradation of the natural environment. In view
of the foregoing, there has been upsurge in trends pursuant to a paradigm shift
conducive to environmentally friendly thought, behavior and activity. Hence,
these days whatever we do, for the sake of the restoration and preservation of
the natural environment, we measure them in terms of their greenness.
Against the backdrop of what I have just said, I am going to use
this post to show whether the mind, thought and activities of ExxonMobil is in
harmony with the natural environment. And, also, by this post to remind the
government of Ghana and the people of Ghana to push for a clean bill of green
health from ExxonMobil in the execution of the petroleum agreement. In other
words I am going to do a green check on ExxonMobil Corporation for obvious
reasons. The green check unfolds in the subsequent sections.
ACTIVITIES TRAIL
I have indicated that
ExxonMobil is the largest of the supermajors. For this very reason it is
important that we know what its activities leave in their trail and the impact
on the natural environment, from which Ghana ought to draw lessons. The
following are some of the activities trail and its impact on the natural
environment:
Yellowstone River Oil Spill- In July, 2011 ExxonMobil oil pipeline running from Silver Tip to
Billings, Montana (USA) ruptured and spilled oil into Yellowstone River. About
1500 barrels of oil leaked into the Yellowstone River for about 30 minutes,
resulting in damages worth $135 million.
Mayflower Oil Spill- On 29th March, 2013 an ExxonMobil pipeline carrying
heavy crude ruptured in Mayflower, Arkansas (USA) leaking about 3190 barrels of
oil compelling 22 homes to be evacuated.
Baton Rouge Oil Spill- In April 2012, an oil pipeline from Exxon Corporation Baton Rouge
refinery broke and released 1900 barrels of oil in the rivers of Point Coupee Parish
Louisiana (USA).
Baton Rouge Refinery Chemical Leak- On June 14, 2012 a breeder plug at
Exxon Baton Rouge refinery failed releasing the following chemicals:
- Benzene- 28,688 pounds
- Toluene- 10,882 pounds
- Cyclohexane- 1,100 pounds
- Hexane- 1564 pounds
- Other volatile organic compounds- 12,605 pounds
After the release of the chemicals people living around the refinery
started complaining of headaches and respiratory problems.
Exxon Valdez Oil Spill- The spilled oil leaked 11 million gallons of oil into Prince
William Sound (Alaska, USA). A sound is a sea or ocean inlet. Some of the
negative environmental impact is as follows:
- 1300 miles of Alaskan coastline contaminated with oil
- Carcasses of over 35,000 birds
- Carcasses of 1000 otters
- Billions of salmon herring and eggs killed
In this section I have cited activities trail in just one country,
the USA, as an example. This section shows clearly how ungreen the operations
of ExxonMobil are. As I move on in the next section we should find out how
ExxonMobil is trying to conform to the green paradigm shift.
GREEN POSITION
It is not only the spilling of oil that is
destroying the natural environment, the combustion of petrol for example, does
contribute to global warming. So generally what is the green position of
ExxonMobil? What is ExxonMobil doing to clean the mess its activities or use of
its products release into the natural environment? But then let me say that
this is a matter affecting the oil and gas industry as a whole. What then is ExxonMobil’s
green position? I am going to answer that question in two ways. The two ways
are positive and negative. ExxonMobil’s green position appears both positive
and negative!
POSITIVE
- ExxonMobil has signed a memorandum of understanding with two universities in Singapore to establish Singapore Energy Centre in Singapore in 2019. The universities, the top two in Asia, are Nanyang Technological University, Singapore and National University of Singapore. The acting provost of Nanyang Technological University, Lam King Yong, says of this partnership: “…Leveraging NTU’s established strengths in sustainability and innovation, this partnership will also raise the bar in developing sustainable industry solutions, paving the way towards a greener future”.
- From 2002, over a period of 10 years, ExxonMobil invested an amount up to $10 million to establish the Global Climate and Energy Project at Stanford University which “would focus on technologies that could provide energy without adding to the buildup of greenhouses gases”.
NEGATIVES
- Union of Concerned Scientists (a not-for-profit science advocacy organization based in the USA): "The funding of academic research activity has provided the corporation legitimacy, while it actively funds ideological and advocacy organizations to conduct a disinformation campaign." The union is talking about the double standard of ExxonMobil.
- ExxonMobil funded organizations that criticized the Kyoto Protocol and wanting to weaken the opinion that global warming is due to the burning of fossil fuel.
- ExxonMobil had a hand in founding and leading the Global Climate Coalition of businesses against the regulation of greenhouse gas emissions.
- As a reaction to fossil fuel divestment, ExxonMobil in its blog of October 2014 stated: fossil fuel divestment “was out of step with reality”…….”to not use fossil fuels is tantamount to not using energy at all”. Fossil fuel divestment is the removal of stocks, bonds (investment assets) and investment funds from companies extracting fossil fuels so as to reduce climate change.
This section shows the double face of ExxonMobil.
PARTING SHOT
ExxonMobil, the largest of the supermajors, is coming to Ghana
to do upstream oil exploration. ExxonMobil has all it takes to get the oil out
of the belly of the Earth for the benefit of Ghanaians. However, in getting
natural resource to meet the need of man, man is destroying the very natural
environment that sustains their life.
The world has come to a point where it is generally known and
accepted that by the activities of man here on Earth, the natural environment
is becoming uninhabitable, extinction of certain species is an example. This
worrying trend has prodded man to find a way out. The new way out is to use
resources from the natural environment without destroying it so as to achieve
sustainability. This is the green revolution!
In this post I have tried to find out whether ExxonMobil is
living up to expectation. I have laid bare the operational activities of
ExxonMobil and what those activities have done to some areas in the United
States of America. It could happen in Ghana too! The coastal village of Dixcove
and the town of Princes Town could be our Baton Rouges. I have also shown the
double standard approach of ExxonMobil to the green solution. This post should
serve as a wakeup call to my compatriots to ensure that as much as possible
ExxonMobil conforms to green standards in its operations in Ghana so as to
sustain the move forward to a clean and balanced natural environment, not only
for Ghana, but the world as a whole.
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