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ExxonMobil Executive Urges Producers: Be Open about Shale Operations

In this "age of unconventionals," shale gas and oil producers have to be as open as possible about their drilling operations, an ExxonMobil Corp. executive said last week.

Jack Williams, president of ExxonMobil subsidiary XTO Energy Inc., was a keynote speaker at the World Shale Gas Conference & Exhibition in Grapevine, TX. As they fight for their place at the table, producers need a consistent message for policymakers and the public.

"The world is counting on industry to develop [resources] in a safe and reliable manner," he said. "Public concerns are growing due to a lack of familiarity with industry. As rigs move into more populous areas, we need to educate the public...

"The challenge only increases when some groups distort science to advance their agendas. Our job is to restore the public's trust and prove we can develop these resources in a safe and responsible manner."

According to Williams, shale producers need to undertake "three critical actions":

The ExxonMobil executive said "environmental activism is not confined to the United States." As shale operators attempt to transfer their know-how to plays outside North America, "it is incumbent that industry sets policy in the United States, which then sets a precedent for around the world."

The gas industry also needs to make it clear to U.S. policymakers that producers "are paying attention to accidents," Williams said. "The industry has an acute awareness of managing risks. The message to [lawmakers] also must be clear that domestic, clean burning natural gas can provide an economic benefit to communities around the country.

"The energy industry already supports nine million full and part-time jobs...and in 2008 alone it provided $385 billion to the economy...On top of those benefits, natural gas holds great promise to reduce greenhouse gas emissions."

The global economic downturn "had a significant short-term impact, but the long-term impact is positive. Natural gas can play a significant role in addressing energy demand, but it's a long road ahead...The best way to realize our full potential is to work together to mitigate the risks to the environment and assure the public...

"Much is expected of us and we need to ensure we deliver. All of us have a role to play."

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