Monday, March 13, 2006

Very cheeky...

Ronald R. Cooke has recently posted an "Open Letter to ExxonMobil" to the Financial Sense website. In it, Cooke briefly takes the company and Chairman Rex Tillerson to task for their public stance regarding the "Peak Oil" theory and the debate that has grown up around it. The proponents of "Peak Oil" maintain that world production of crude oil is peaking and that subsequent oil discoveries will fail to bring us back to the levels of production we enjoyed at the peak of the production curve.

Under Chairman Tillerson, ExxonMobil seems to be continuing former chief Lee Raymond's stance on the "Peak Oil" issue: downplay or deny the notion of peak oil and use the opportunity to highlight technological improvements in the energy business (see the included graphic of the Exxon Mobil PR ad at the end of Cooke's letter).


Although most of the major oil companies have downplayed the idea of a resource shortage, some executives have been forced to admit that reserves are not being replaced as easily as they might have hoped.