Alternative Fuels

• What percentage of revenue does ConocoPhillips invest in research and development (R&D) for renewable fuels? 
  Although ConocoPhillips does not budget R&D costs as a percentage of revenue, the company's budget includes a very significant increase in the technology expenditures for 2007. The total technology budget for 2007 is a little over $150 million. Of that, almost 20 percent is for renewable fuels (a 700 percent increase over the 2006 spend). As evidenced by the substantial increase in the budget, renewables are an important strategic area of ConocoPhillips' growth plans. 
   
• Could I run my home with propane rather than natural gas?
  Although running a home with propane rather than natural gas is technically feasible, at this time it is not a cost-effective option.
   
• How advanced is the production of gasoline from vegetable oils from cafes and restaurants?
  In December 2006, the company began commercial production of renewable diesel at its Whitegate Refinery in Cork, Ireland. The production process, which was developed by ConocoPhillips, uses soybeans and other vegetable oils to produce renewable diesel fuel that meets European Union standards for diesel fuels. The company also plans to utilize this process to convert animal fats renewable diesel fuel through its recently announced strategic alliance with Tyson Foods. 
   
• Do we have the water for all the bioenergy we need to grow?
  The amount of water needed will depend on the crop type ultimately selected for usage. Sound public policy should place water as a primary concern in establishing the level of bioenergy ultimately introduced.
   
• Why is the U.S. not considering power from wave action?
  Many U.S. companies are looking at tidal and ocean energy; however, the best resources (the largest waves) are not located close to the largest demand centers.
   
• Are there any possibilities for nuclear fusion?
  Currently, no one has been able to sustain a fusion reaction for more than a few seconds. Academic work continues, but many major breakthroughs will be required before it can become economic.
   
• What are your interests and current research in clean coal technologies? 
  ConocoPhillips' newest addition to its Technology Solutions portfolio is the E-Gas™ Gasification. Acquired in July of 2003, this proven technology is the cleanest, most efficient commercial process for converting coal or petroleum coke into a hydrogen rich synthesis gas, ideally suited for refining, power and chemicals application. With over 15 years of proven commercial experience in Integrated Gasification Combined Cycle (IGCC) application, this technology provides a highly efficient, environmentally superior, and competitive based-load power alternative. In a refinery setting, the technology can process high sulfur petroleum coke into power, steam and hydrogen for the refinery and surrounding markets. We are currently pursuing this technology very aggressively.
   
• Is hydrogen a realistic fuel alternative? What is being done to convert?
  Hydrogen is an energy carrier, not a fuel. While there is currently a substantial amount of work being done, its broad scale rollout is likely decades away.

Conservation

• What are we doing to change our national attitude for transportation rather than to meet a growing / expanding appetite for energy?
  Changing national attitudes first requires a greater understanding of our energy usage and the impacts of possible changes to how we develop and use energy. We are holding these meetings to foster a better understanding to allow for better development of well-informed public policy.
• Is the government, oil industry and automotive industry working on plans to change the current methods of consumption and conservation?
  ConocoPhillips is supportive of the government’s movement to tighten CAFÉ standards, which will mandate improved fuel efficiency in new vehicles. We are also working with the automotive industry to develop technology for new fuels for advanced engines, better hybrid batteries and greater vehicle efficiency.
   
• What are easy, inexpensive things the average American can do to conserve energy?
  Insulating walls and ceilings, turning off lights at your home, turning down the thermostat at night, considering fuel efficiency when purchasing a new car, driving the speed limit, and carpooling when possible are several examples of simple ways to conserve energy.
   
• What is ConocoPhillips doing to improve refinery efficiency?
  Under the President’s Climate Challenge Program, ConocoPhillips has complied with the goal of improving energy efficiency at refineries by 10 percent by 2012. ConocoPhillips is working newer and better catalysts and redesigned processes to improve our efficiency. The industry as a whole is ahead of schedule on meeting this goal, which will reduce annual greenhouse gas emissions.
   
• Why has production stopped on the electric car? 
  Too many customers saw deficiencies in the electric car's performance factors, such as range and acceleration, to purchase it. As a result, demand was not sufficient to keep production viable. However, in the future we may be seeing a rebirth of the electric car in the form of a plug-in hybrid.

Industry Operations

• How do we help oil companies get permits to build some new refineries?
  Whenever possible, please urge government officials to take steps to streamline permitting processes. We fully support detailed reviews of proposed projects, but frequently the process gets bogged down with unnecessary bureaucratic delays that do not add to meaningful review of critical issues. 
  
• How can we help get more drilling permits for coastal areas and restricted areas in the U.S.?
  Talk to your elected officials about the need to increase our domestic supply of oil and gas. While it is unlikely that increased drilling in such areas will result in complete "energy independence," it is clear that we should have a goal of reducing our dependence on foreign oil and gas, and this is one way to further that goal. 
  
• How can the government help make R&D easier and more profitable?
  The government can and should continue to work with industry in research on new technologies. The government can also utilize market-based incentives to drive adoption of new technology. Government should take care to not select the winners and losers as technologies develop, but ensure that the market decides which are the best technologies for the future. 
  
• Why do major oil companies control such a small percentage of oil reserves?
  Oil reserves are owned by the country in which they are found. Most governments allow only limited to no access to outside companies in an effort to control the development of, and capture the revenue from their assets.

Government Actions / Policies

Environment

• What are you going to do about global warming?
  ConocoPhillips is committed to taking action now to address the important issue of climate change, and we are working toward an approach within our own operations that builds through slow, stop and reverse phases. The company has recently joined the U.S. Climate Action Partnership (USCAP) and has added its support for a national policy on climate change, including mandatory emissions controls. We welcome the opportunity to work with lawmakers and the Administration to develop a practical program that balances two goals: the goal of achieving real reductions of gas emissions, along with the goal of maintaining strong growth within the nation’s economy. 
  
• Oil shale is very destructive. How do you plan to do that and protect land?
  ConocoPhillips is evaluating the case for oil shale development and at this stage no decision has been made. An important consideration is how to do it sustainably. Our evaluation includes identifying technologies that would allow us to minimize our footprint, especially with regard to water and surface disruption. We will only commercialize oil shale if we feel we can do it in a way that is consistent with our corporate policies with sustainable development. 
  
• How can we ensure that we do not sacrifice or deplete other precious assets (water, land, flora and fauna) in our rush to meet energy needs?
  ConocoPhillips believes that energy security must go hand in hand with environmental responsibility. We are committed to researching environmentally friendly and economical ways to produce our current resources. 
  
• Does ConocoPhillips plan on investing on reforestations (e.g. tree plantings) to offset some of its own CO2 emissions?
  ConocoPhillips has participated in a number of re-forestation projects, but more with the end in mind of protecting biodiversity than to offset CO2 emissions. Forestation is only a temporary solution to CO2 storage since CO2 is released when the tree decomposes at the end of its natural life. Furthermore, a great deal of land is required for a relatively small amount of CO2 capture compared with the efficiency of alternative ways of avoiding or reducing CO2 greenhouse gas emissions. We believe there are a range of mitigation strategies which can have more immediate and lasting impact. Within our own operations, these include measures such as flaring elimination, improved energy efficiency, geologic storage of CO2 and the development of fuels such as renewable diesel, which produces less CO2 through its life-cycle than conventional gasoline or diesel. 
  
• Is anyone really serious about oil shale and coal liquefaction given the environmental impacts? 
  There is substantial work going on right now to make shale oil and coal to liquids viable. Much of this work is trying to develop more environmentally sound methods for their production. It is unlikely that either energy source will become widely commercial without real advancement in reducing the environmental footprint. 
  
• What are you doing on carbon capture and sequestration?  
  ConocoPhillips is actively researching capture technologies, storage geology, transportation and system integration as well as participating in several multi-national consortia on this topic.