September 11, 2011

Exxon Bets $3 Billion Climate Change is Real


This just in: Exxon Mobil has made a multi-billion dollar acknowledgement that climate change is real and is happening now.
Don’t hold your breath waiting for them to admit this, though. Exxon would like you to believe that climate change is neither real nor urgent. That is why they have spent millions of dollars over the last several years funding climate skeptics and fighting legislation that would regulate the emissions of greenhouse gases. When you hear climate skeptics speak, there’s a good chance that Exxon money is in their pocket.
Actions, however, speak louder than words. And Exxon’s most recent action was a thunderclap.According to reports, Exxon has just signed an extensive deal with Rosneft, the Russian state oil company, to develop promising offshore oil and gas deposits in the Arctic Ocean. The companies will begin by investing $3.2 billion to explore in the Kara Sea, with the potential of increasing the investment to $500 billion in the future. Exxon is so convinced of the potential of these sites that it is giving Rosneft ownership rights in several of its global properties to complete the deal.
Large deposits of gas and oil have been known to exist in the Arctic Ocean for decades. So why did they make this deal now? One key thing has changed: the arctic ice is melting rapidly. The Kara Sea has typically been covered by ice floes nine months of the year or more, making commercial development of its resources unprofitable. But for the last several years, the extent and duration of the arctic ice has been diminishing, a phenomenon the vast majority of scientists believe to be caused by climate change. Suddenly, oil and gas exploration in the Arctic Ocean is looking far more attractive. Exxon has realized that a warming planet offers some new opportunities for profit and is adjusting its strategic decisions accordingly.
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