Watching Government Noto speaks out

With Patrick Crow from Washington, D.C. [email protected] Lucio Noto, chairman and CEO of Mobil Corp., is blunt in his assessment of some major issues facing the petroleum industry. Noto, in a talk before the German American Business Council in Washington, D.C., attacked the foibles of environmental extremism, global climate change, and trade sanctions. He said Mobil's employees "are as interested as anyone" in preserving the environment. "We live on the same planet as every environmental

Sept. 23, 1996

3 min read

Lucio Noto, chairman and CEO of Mobil Corp., is blunt in his assessment of some major issues facing the petroleum industry.

Noto, in a talk before the German American Business Council in Washington, D.C., attacked the foibles of environmental extremism, global climate change, and trade sanctions.

He said Mobil's employees "are as interested as anyone" in preserving the environment. "We live on the same planet as every environmental activist in the world."

He said environmental concerns have become a key part of business operations and will not disappear.

"But for heaven's sake, we have to bring a little logic into the process. Somebody has to start talking about costs and benefits. We cannot pass every bit of environmental legislation just because it has a green tag on it.

"This country cannot afford to undertake crazy programs that will permanently bankrupt the most productive part of our country just for the sake of a label."

Climate change

Noto said global climate change has become the "flavor of the day" for environmentalists.

He said, "Very frankly, I would not dismiss the risk poised by greenhouse gases based on the science we have today." But he said the U.S. should not take "draconian measures that have unusually large social and economic impacts, based on what potentially might happen in 2020.

"We need to use common sense. This is an evolving science, and we need to take reasonable steps."

Noto said, "Unfortunately the United Nations is considering policies that are premature, inequitable, costly, and ultimately counterproductive."

He said the U.S. "has jumped in with both feet" supporting a resolution calling for developed nations to cut carbon dioxide emissions "without having the slightest idea of the impact on the economy or the environment."

He said if climate change is a global problem, any solution should require action by all nations-and it should not cripple industries.

"Without the wealth in the corporate sector, we cannot afford to take the steps necessary to improve the environment."

Nigeria and sanctions

Noto also argued against trade sanctions against Nigeria, where Mobil has a large operation.

"Unfortunately, the Lord didn't put hydrocarbons in resort locations. And unfortunately, some of the places we do business in aren't very popular, and some people think they can change them by imposing sanctions or boycotts."

Noto argued, "Mobil's presence in Nigeria makes a solid, serious, positive contribution" and although the company has worked quietly for changes, "We can't dictate our own views on this government."

He asked, "What possible good would it do to force Mobil to leave Nigeria? Would Nigerians be better off? Would Americans be better off without Mobil in Nigeria?"

Finally, Noto urged the oil industry and the business community in general to get more involved in these debates.

He said, "Too many people in my industry are too quiet."

He said businessmen "would bring more logic and more common sense into these debates than that whole cast of characters up on Capitol Hill. These issues are too important to leave to people who are driven by short term considerations."