In a seeming about-face by the oil industry, Big Oil is now encouraging the development of alternative energy. As Congress considers boosting clean tech through legislation, the National Petroleum Council is on hand to lobby FOR increased alternative energy. CNN Money reports on this extraordinary move by Big Oil:
"The world is not running out of energy resources, but there are accumulating risks to continuing expansion of oil and natural gas production from the conventional sources relied upon historically," said Alan Kelly, who was ExxonMobil Corp.'s (XOM) general manager of corporate planning before he was selected for this project. "These risks create significant challenges to meeting projected total energy demand."
To mitigate the risks, the report said it will urge "expansion of all economic energy sources," including coal, nuclear, biomass, renewables and unconventional oil and natural gas such as that from oil shale and tar sands.
Photo:jadam, Creative Commons, Flickr
Of course, the report by the National Petroleum Council does not rule out continued reliance on fossil fuels. Indeed, the report also encourages oil shale and tar sands as acceptable alternatives to traditional oil resources. But it is a step in the right direction for Big Oil, as the sector seeks to improve its image and find ways to diversify beyond oil. Indeed, as demand on the world's supply increases, it is quite possible that the companies that seek to diversify their energy investments with alternative energy may find themselves ahead.
Disclosure: I do not own stock in XOM.