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James Hackett was named President and Chief Executive Officer of the Company in December 2003, and Chairman of the Board of the Company in January 2006. Prior to joining the[…]

How is the race for resources changing the global order?

Quesiton: Will foreign energy markets shut out American companies?

Jim Hackett: I think it will be very challenge. If energy price is to stay at a high level, they won’t want what you and I would want, which is they would want to control their own natural resources. Interestingly most of the world, in fact every country I can think on earth other than America, actually exploits its own resources oil.

Question: How is the race for resources changing the global order?

Jim Hackett: Yeah I do think there will be continue pressure and as we just said, I think there will be a continued move try to control those resources, but they are still going to want to have co-investors, they are still going to want to have technical expertise shared, with in the industries.  So, I don’t think it will be fully closed off. I think that they will control the majority interest in many cases. And importantly I think all of us are going to be in a world together when we are going to try to be focusing on global climate change and try to figure out, what are the right energy resources to be using. It ought to strike all of us is bit intriguing that a number of exporting countries in the Middle East want to actually build nuclear facilities. That is a bit intrigue to me when our own country tries to shut it down. The only 20th century technology in energy was actually shut down, because it worked [Inaudible]. Now, we are hoping that we can restart it again. It will be a way, way too late and in the mean time we burn a lot more hydrocarbon fuels.

Question: Will we see power shift from big oil producers to smaller ones?

Jim Hackett: There is definitely a shift and who are looking at for the new resource, because if you sat here 30 years ago, the international oil company is one of them the primary people you would have looked at for the additional production, because they actually controlled a number of the oil resource, even in the once that are now controlled by national oil companies and countries like Russia will have much more direct say, in what is actually produced in terms of energy conventional energy resources, now I am talking about gas - natural gas and oil. Just like the Saudi’s have for the last 20 plus years been able to say more with what happens in their particular arena. We are not to deal with that doesn’t mean in the international oil companies are going away, just means that we are going to have much more diversity I think. Not necessarily smaller, because if we increase conventional fuel usage, by some 25% over the next 20 years, that doesn’t mean we are actually going to have the smaller producers, that actually means we may have more big producers, they just happen to be national oil companies. As you probably know Exxon Mobil is not in the top oil companies in the world.

Recorded On: 3/24/08