On issues of global warming and climate change, Murphy shares the concerns of our shareholders, employees and community. As a company, we recognize that our planet is experiencing a period of global warming. Nine of the last 10 years have been the
warmest since modern records began in 1861. The year 2005 was the warmest year on
record, according to NASA’s Goddard
Institute, and while the data is incomplete,
the year 2006 appears to have sustained
this trend.
While there is no disputing this warming
trend, it is important to consider the facts. The
complexity of our planet’s climate system
makes it difficult to understand past and
future consequences of greenhouse gas
increases.
Certain limits in climate knowledge are well
known—for example describing behavior of clouds,
hydrology, sea ice and ocean circulation—and
continued research is necessary. In
addition, climate observations display
significant natural variability that cannot be
explained with existing models and
knowledge. In recent and ancient geological
past, for example, climate has been both
warmer and cooler than today for reasons that
are not yet understood. The need to advance
our knowledge notwithstanding, it is
incumbent upon all of us to do what is
possible to mitigate the potential impact of
greenhouse gases (GHG) on our environment.
With this in mind, Murphy has initiated a
series of actions designed to produce a
measured and verifiable reduction of
greenhouse gas emissions on a per-barrel
basis. We began by conducting and
establishing a verifiable, third party estimate
(Trinity Consulting - Sangea methodology) of
our current, or baseline greenhouse gas
emissions. With a baseline established,
Murphy is now in the process of evaluating a
number of cost-effective initiatives designed
to reduce our greenhouse gas emissions.
As these initiatives are implemented, we will
monitor our progress through annual emission
surveys, once again using verifiable third
party estimates.
While our program is clearly nascent, we
believe with the advent of new technologies
and programs such as carbon sequestration,
various offsets and trading mechanisms, and
reduced flaring, it may be possible for
Murphy to reach its ultimate goal of reducing
greenhouse gas emissions on an absolute basi
despite growth in both our upstream and
downstream operations. This will benefit not
just our shareholders, but our community and
world at large. |