Big Energy Is Just like Big Tobacco — and That’s Terrible News for Everyone
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In the 1980s, encountering regulatory restrictions and public resistance to smoking in the United States, the giant tobacco companies came up with a particularly effective strategy for sustaining their profit levels: sell more cigarettes in the developing world, where demand was strong and anti-tobacco regulation weak or nonexistent. Now, the giant energy companies are taking a page from Big Tobacco’s playbook. As concern over climate change begins to lower the demand for fossil fuels in the United States and Europe, they are accelerating their sales to developing nations, where demand is strong and climate-control measures weak or nonexistent. That this will produce a colossal increase in climate-altering carbon emissions troubles them no more than the global spurt in smoking-related illnesses troubled the tobacco companies.
The tobacco industry’s shift from rich, developed nations to low- and middle-income countries has been well documented. “With tobacco use declining in wealthier countries, tobacco companies are spending tens of billions of dollars a year on advertising, marketing, and sponsorship, much of it to increase sales in... developing countries,” the New York Times noted in a 2008 editorial. To boost their sales, outfits like Philip Morris International and British American Tobacco also brought their legal and financial clout to bear to block the implementation of anti-smoking regulations in such places. “They’re using litigation to threaten low- and middle-income countries,” Dr. Douglas Bettcher, head of the Tobacco Free Initiative of the World Health Organization (WHO), told the Times.
As in the case of cigarette sales, the stepped-up delivery of fossil fuels to developing countries is doubly harmful. Their targeting by Big Tobacco has produced a sharp rise in smoking-related illnesses among the poor in places where health systems are particularly ill equipped for those in need. “If current trends continue,” the WHO reported in 2011, “by 2030 tobacco will kill more than 8 million people worldwide each year, with 80% of these premature deaths among people living in low- and middle-income countries.” In a similar fashion, an increase in carbon sales to such nations will help produce more intense storms and longer, more devastating droughts in places that are least prepared to withstand or cope with climate change’s perils.
The energy industry’s growing emphasis on sales to these particularly vulnerable lands is evident in the strategic planning of ExxonMobil, the largest privately owned oil company. “By 2040, the world’s population is projected to grow to approximately 8.8 billion people,” Exxon noted in its 2013 financial report to stockholders. “As economies and populations grow, and living standards improve for billions of people, the need for energy will continue to rise... This demand increase is expected to be concentrated in developing countries.”
This assessment, explained Exxon CEO Rex Tillerson, will govern the company’s marketing plans in the years ahead. “The global business environment continues to provide a mix of challenges and opportunities,” he told financial analysts at the New York Stock Exchange in March 2013. While the demand for energy in the developed economies “remains relatively flat,” he noted, “energy demand for the economies of the non-OECD countries is expected to grow about 65% to support anticipated growth.”