An open letter from Lou Allstadt to Rex Tillerson

From time to time this blog reposts articles and letters that are relevant to our topic.

Rex Tillerson
Rex Tillerson: an icon of hypocrisy

Today we have a powerful open letter from Louis Allstadt to Preserve the Beartooth Front icon Rex Tillerson. I’m sure you remember Rex. He’s the CEO of ExxonMobil who publicly complained that “dysfunctional regulation of hydraulic fracturing is holding back the American economic recovery, growth and global competitiveness,” and then joined with his neighbors in a lawsuit to block construction of a large water tower, used to support fracking operations, next to his Texas home. We have even named the Rex Tillerson Fracking Hypocrite Award after him.

Lou Allstadt
Lou Allstadt

Allstadt is a former oil company executive. Up until his retirement in 2000, he was the executive vice president of Mobil oil, before it merged with Exxon. Over 31 years spent with the company, he ran its marketing and refining in Japan and managed its worldwide supply, trading and transportation operations. He knows about oil.

Since he retired Allstadt has become a vocal oppornent of fracking in New York state, and more recently a crusader in the fight to mitigate climate change. He says of fracking, “…you might be able to stop someone from drilling in your town, but the impacts are going to get everybody. It doesn’t matter where you live.”

Allstadt took the occasion of the announcement of Tillerson’s lawsuit in February to write this open letter to him. It is a strong statement about the impacts of oil and gas drilling and how it affects people and communities.

Here is the letter in its entirety:

Dear Rex,

We have never met, but I worked for your company for six months immediately after the ExxonMobil merger, the implementation of which I coordinated from the Mobil side. That was after thirty years with Mobil Oil Corporation, where just prior to the merger I had been an Executive Vice President and Operating Officer for Exploration and Producing in the U.S., Canada and Latin America. I now live in upstate New York.

For the past five years, I have been actively trying to keep your company and the rest of the industry from fracking here. I understand from several press articles that you have fracking issues of your own, with a fracking water tower and truck traffic possibly detracting from your view and the value of your home.

In response to the prospect of fracking ruining our communities, many New York towns have passed zoning laws that prohibit heavy industry, including any activities associated with drilling for oil and gas. Those laws, along with very little prospect for economic gas production in New York, mean that we probably will not have to look at fracking water towers, let alone live next to fracking well pads. I say probably, because your industry is still fighting those zoning laws in the courts.

Louis Allstadt quoteIronically, your reasoning at the Bartonville, Texas town council meetings is virtually identical to the reasoning that I and many other citizens used to convince our local town councils to pass laws that prohibit the very problem you have encountered, plus all of the other infrastructure and waste disposal issues associated with fracking.

No one should have to live near well pads, compression stations, incessant heavy truck traffic, or fracking water towers, nor should they have their water or air contaminated. You and I love the places where we live, but in the end, if they are ruined by fracking or frack water tanks, we can afford to pack up and go someplace else. However, many people can’t afford to move away when they can no longer drink the water or breathe the air because they are too close to one of your well pads or compressor stations.

My efforts to prevent fracking started over water — not the prospect of having to see a water tank from my home, but rather regulations that would allow gas wells near our sources of drinking water, in addition to well pads next to our homes, schools, hospitals and nursing homes. These issues are legitimate, but they are localized. I am now much more concerned with the greenhouse gas impacts of fossil fuels in general, and particularly the huge impact of methane emissions from natural gas production and transportation.  These are global problems that local zoning cannot protect against. Only a major shift toward renewable energy sources can begin to mitigate their catastrophic climate impacts.

Before closing, I should explain why I have referred to ExxonMobil as “your company.” For several years after retiring I thought of ExxonMobil as “my company.” I thought that the company’s rigor and discipline in investing in sound projects was as good as it gets, and ExxonMobil was my largest single investment. I no longer own any shares of ExxonMobil or any other fossil fuel company.  I would prefer to be an early investor in alternative energy for the 21st century rather than hanging on to dwindling prospects for investments in 19thand 20th century fossil fuels.

It is time that ExxonMobil started shifting away from oil and gas, and toward alternatives — both for environmental reasons and to protect the long-term viability of the company. Many large energy producers and consumers, including ExxonMobil, are building a carbon fee into their long-term planning assumptions.  Actively supporting the phase-in of a carbon fee would be one way to move the company into the 21st century. Recognizing that methane emissions disqualify natural gas as a “bridge fuel” is another.

Good luck with that fracking water tank. I hope you don’t have to move, and also that you will help a lot of other people stay in the homes they love.


Lou Allstadt

About davidjkatz

The Moses family has lived on the Stillwater River since 1974, when George and Lucile Moses retired and moved to the Beehive from the Twin Cities. They’re gone now, but their four daughters (pictured at left, on the Beehive) and their families continue to spend time there, and have grown to love the area. This blog started as an email chain to keep the family informed about the threat of increased fracking activity in the area, but the desire to inform and get involved led to the creation of this blog.
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2 Responses to An open letter from Lou Allstadt to Rex Tillerson

  1. Arleen Boyd says:

    What do you think about this? .html?hp&rref=opinion Reply-To: Preserve the Beartooth Front Date: Wednesday, April 30, 2014 7:13 AM To: Arleen Boyd Subject: [New post] An open letter from Lou Allstadt to Rex Tillerson davidjkatz posted: “aFrom time to time this blog reposts articles and letters that are relevant to our topic. Rex Tillerson: an icon of hypocrisyToday we have a powerful open letter from Louis Allstadt to Preserve the Beartooth Front icon Rex Tillerson. I’m sure you remem”

  2. davidjkatz says:

    The New York Times thinks we can make fracking safe by enacting strong regulations around methane emissions. I’m all for that, but we’ve got a company on our doorstep that has fouled water and land all over Pennsylvania, and is about to do the same here. We can’t wait for the Washington or Helena to get their act together. We’ve got to act locally NOW to preserve our region.

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