Fossil Fuel CEOs Say They Just Want to Lift People Out of Poverty. Do You Believe Them?

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In a 2013 interview about the risks and rewards of oil exploration, Charlie Rose asked then Exxon CEO (and now Secretary of State) Rex Tillerson if his philosophy was โ€œDrill, baby,ย drill!โ€ย 

Tillerson replied that his philosophy was โ€œto make money.โ€ย At the same time, during his tenure asย CEO of ExxonMobil, he alsoย discussed how energy companies are eager to help lift the developing world out of poverty โ€” a slightly different perspective.ย ย 

โ€œWhat you got to remember is that there are people out there that still donโ€™t have electricity, they donโ€™t have running water, they canโ€™t refrigerate medicines, they canโ€™t refrigerate food,โ€ Tillerson told the crowd at the University of Texas VIP Speaker Series in 2016. โ€œโ€ฆ they would like to have access toย energy.โ€

For years the coal industry has also pushed the idea that it is motivated by a desire to help people in developing countries by providing them with coal-powered electricity. A viewing of John Oliverโ€™s recent piece on the coal industry and its focus on some industry CEOs โ€” along with their less-than-stellar history of prioritizing the safety and well-being of workers over profitsย โ€” doesnโ€™t really make thatย believable.ย 

The track record of the industry certainly looks like a group focused more on making money than helping lift the developing world out ofย poverty.ย 

In May the Washington Post ran an article about Tillerson and Exxonโ€™s experience in the African country Equatorial Guinea with the title, โ€œHow our incoming secretary of state helped to enrich Africaโ€™s nastiest dictatorship.โ€ It points out how Exxon and a small group of elites made a lot of money producing oil there while โ€œnearly two-thirds of the population lives in extreme poverty.โ€ The rest of the article is well worth aย read.ย 

Under Tillerson, State Department Proposes Cuts to Aid for Developingย Countries

With Rex Tillerson leading the State Department, it isnโ€™t surprising that the policies might be pro-fossil fuels. As reported by DeSmog recently, Tillerson was at the signing of a new agreement between ExxonMobil and the state-owned Saudi Basic Industries Corporation (SABIC) regarding a Gulf of Mexico natural gasย refinery.ย ย 

And Tillerson is certainly not the only former fossil fuel executive or lobbyist in the Trump administration. Commerce Secretary Wilbur Ross owned several coal mines. In addition, Jeffrey Bossert Clark was nominated recently toย be the top environmental lawyer at the Justice Department. Not only is Clark a climate denier, his previous work includes representing BP in the Deepwater Horizon disaster. These are just a few examples in what is a longย list.ย 

However (and also probably not surprising), despite all of these fossil fuel champions in the Trump administration, it seems the industry rhetoric about wanting to bring electricity to the world to โ€œlift people out of povertyโ€ appears to be nothing more than, well,ย rhetoric.ย 

Not only has Trump proposed a budget that would slash funding for the U.S. Agency for International Developmentย (USAID), the proposal also includes rolling the civilian foreign aid agency into Tillersonโ€™s State Department. According to its website, โ€œUSAID is the lead U.S. Government agency that works to end extreme global poverty and enable resilient, democratic societies to realize theirย potential.โ€

In 2016, a week after Trump was elected, USAID announced it was funding eight solar companies in Africa. Companies that Tillerson should love โ€” based on his comments โ€” because the focus is on bringing solar energy to communities with noย electricity.

But apparently the fossil fuel industry only approves of this concept ifย oil, gas, and coal are providing theย electricity.ย 

Additionally, Trump recently mocked the Green Climate Fund, which is a United Nations financial mechanism for helping developing nations reduce and adapt to climate change impacts. Trump said: โ€œYet another scheme to redistribute wealth out of the United States through the so-called โ€˜green climate fund’ โ€” nice name โ€” which calls for developed countries to send $100 billion to developing countries.โ€ He has promised to cut that funding asย well.ย 

And Now the Goodย News

A recent New Yorker article by 350.orgโ€™s Bill McKibben takes an in depth look at the work of those solar start-ups funded by USAID. While the start-ups have benefited from that money, the companies also are attracting big venture capitalists โ€” who may be philanthropists โ€” or who may share Tillersonโ€™s philosophy โ€œto make moneyโ€ and see an opportunity to makeย more.ย 

The potential and opportunity for energy companies of any kindย in Africa are huge. It was estimated in 2014 that more than half of the 1.06 billion people in the world without access to electricity liveย in Africa. And the fossil fuel industry knows that could mean a lot of money if it can get thereย first.ย 

With the many variables involved, the outcome of the race to power Africa certainly isnโ€™t clear. Especially since one of the players is the fossil fuel industry and they have a history ofย winning.

However, in McKibbenโ€™s article, he points outย a real shift in the way solar power is viewed in Africa today. He quotesย a U.S. Trade and Development Agency official, who says, โ€œAfrican leaders used to think solar was being pushed on them but now they all wantย solar.โ€

In the article, McKibbenย notes that many people without electricity in Africa currently use kerosene fuel for their lighting sources. Thanks to some of these solar start-ups, they can now get better lighting for the same cost by using solar panels. That’s aย direct switch from fossil fuels to solar power, with improvedย performance.ย 

The way the Trump administration is working right now, it appears to be stacking the global deck so that fossil fuels will be the dominant energy source for decades to come. Obviously, this would be devastating to the goal of keeping a stableย climate.ย 

At the same time, renewables may be a cheaper and healthierย solution to bring electricity to the billion people in the world who donโ€™t currently have it. In the end, it wonโ€™t be environmental forces that drive these changes but economicย ones.ย 

Africans want electricity. But they want it at the best price. And if solar can do that, it has a real shot at filling thatย need.

Someone whose philosophy is simply โ€œto make moneyโ€ should understand that only tooย well.ย 

Main Image: Secretary of State Rex Tillerson. Credit: Department of State, publicย domain

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Justin Mikulka is a research fellow at New Consensus. Prior to joining New Consensus in October 2021, Justin reported for DeSmog, where he began in 2014. Justin has a degree in Civil and Environmental Engineering from Cornell University.

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