“In a reset economy, the government will be a regulator; and also an industry policy champion, a financier, and a key partner.” (Jeff Immelt, GE 2008 Annual Report, quoted here)

“What else can be said about how a destructive management philosophy–long warned against by classical liberals–drove a once iconic American company into the bog? Contra-capitalism destroys wealth, not only capitalism.” (below)

A May 27, 2020, piece at EnergyWire (E&E News) reported the latest of how errant leadership, political correctness, and cronyism diminished a once proud, iconic company.

“General Electric Co. cut one of the last remaining links to founder Thomas Edison, as the beleaguered manufacturer wrapped up a three-year process to sell its iconic lightbulb business,” reported Rick Clough. The buyer was the automated ‘smart home’ firm Savant Systems Inc.…

“[Lee Raymond] is a leader among leaders. He’s always encouraged and considered a range of views and opinions on a multitude of issues … including climate change.” – Jamie Dimon, CEO, JPMorgan.

Climate activists got beat in proxy voting at JPMorgan’s recent annual meeting, a good result for investors and employees, as well as consumers and the general economy. The climate will not notice either.

The activists failed to oust JPMorgan’s lead independent director Lee Raymond, longtime head of Exxon Mobil Corp., who never bought into renewables or climate alarmism. Maybe the activists want a different thinker with industry experience such as BP’s John Browne (father of that company’s environmental problems). Ken Lay was the antithesis to Raymond too.

Raymond was Right

Regarding renewables as mass substitutes to mineral energies, Raymond knew decades ago what Michael Moore, Jeff Gibbs, et al.…

“… we have set ourselves the ambition to become a net zero company by 2050 or sooner and to help the world get to net zero…. We will need support from partners, investors, policy makers, customers – and trade associations…. (Bernard Looney, CEO, BP, 2020)

“BP’s $100-million annual investment in clean energy equals only about 1 percent of the company’s overall expenditures of $12.5 billion.  While this positions the company to gain market share in a growing industry, it does little to reduce vulnerability to policies that reduce demand for carbon-intensive products.” (Seth Dunn and Christopher Flavin, 2002, p. 41)

BP is a fossil-fuel company with token investments in solar, wind, and biofuels. The new CEO, Bernard Looney, is taking the company back to the John Browne’s “beyond petroleum” days.…

“Sen. Sanders calls us criminal and Vice President Biden says he would put us in jail, but it would be criminal not to produce the life-sustaining energy that enables a healthy, safe and modern lifestyle.”

– Kathleen Sgamma, Western Energy Alliance, February 24, 2020

The Western Energy Alliance just placed a full-page advertisement in the New York Times with Super Tuesday in mind in which 54 oil and gas executives challenged those calling their livelihood and industry criminal.

It is high time that the major integrated oil and gas companies, not just the independents, play offense rather than defense. Seize the moral high ground and do not appease the disgruntled, obstructionist critics (those with “termite aspirations”).

A half-century ago, Ayn Rand warned business leaders to lead, not capitulate. Remember Exxon’s great value-creator (1993–2005) Lee Raymond?…