promising emerging energy sources l chevron linkedin group discussion

A LinkedIn Group Discussion AnalysisPromising Emerging Energy Sources

July 2012

© 2012 Chevron 2

Overview and Methodology

In your opinion, what is the most promising emerging energy source and why? Is it renewables such as wind, solar, hydro, or geothermal? Clean power such as clean coal, carbon capture and sequestration (CCS) or hydrogen power? Unconventional sources such as oil sands or shale gas? Other?

Ongoing discussion can be found at:http://linkd.in/Nck4aG

DISCUSSION:

Tell us what you think.

© 2012 Chevron 3


This is one of the most popular discussions on the Chevron LinkedIn Group Page. To create this report, all of the responses were read and categorized and publically available information from commenter LinkedIn profiles was compiled. The report aims to provide an overall snapshot of group opinion expressed in the discussion as well as insight into the group’s dynamics through commenter demographic analysis.

782198

165total comments

unique commenters

comments articulated a position

Comments were received between February 2011 and January 2012.

© 2012 Chevron 4


*All Linked comments featured in the report have been condensed from original.

For clarification, please note, two of the most popular positions expressed in the discussion have been categorized as follows:

Combination Energy EfficiencyRefers to comments that clearly expressed the belief that no single source is most promising and multiple emerging sources will need to be cultivated for the future.

Greg Michael MBA

Jamie Hannon

Refers to comments in favor of technologies and ingenuities that achieve energy reduction and find these savings to be the most promising emerging energy source.

The energy companies are think tanks of engineers and managers with real programs developing biofuels, geothermal, hydrogen, solar, wind - the entire spectrum of possibilities.

I think the most promising “source” of energy is aggregated efficiency & conservation. We live in a world of declining resources and increasing population - we absolutely need to learn how to use our existing reserves more wisely.

“ “

“* *“

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Response Breakdown

“What is the most promising emerging energy source and why?”

Natural Gas

Combination

Wind

Geothermal

Hydrogen

Nuclear

Energy Efficiency

Solar

BioMass

Algae

Water

Electromagnetic

30% 4%

20% 4%

17% 4%

10% 2%

7% 2%

5% 1%

© 2012 Chevron 6

Response Analysis

T. Boone Pickens was referenced during the discussion thread in March, June, and July of 2011. In an interview with Roll Call, published May 17, 2011, Pickens discussed a shift in his plan, originally established in 2008. Largely due to wind power investments not proving financially viable in the short term, Pickens “tabled” the renewable energy section of his plan in favor of clean energy, specifically the development of natural gas. In July of 2011, Pickens continued to buy up U.S. shale acreage and on April 28, 2012 wrote a letter to the editor of USA Today, taking exception to an editorial that urged the export of natural gas.

© 2012 Chevron 7

Response Analysis

Pickens Pillars*

The overall top Chevron Group discussion responses (note that participants were largely from the United States) match closely with the current pillars of the “Pickens Plan.” Comments specifically mentioning Pickens discussed his motives for moving away from wind power and the viability of natural gas.

Chevron Group Responses

Invest in multiple alternative energy technologies.

Use America’s abundant natural gas to replace imported oil as a transportation fuel.

Provide incentives to homeowners and the owners of commercial buildings to upgrade their insulation and increase efficiency.

Develop renewable energy sources, such as wind and solar power.

30% Combination

20% Natural Gas

12% Energy Efficiency

10% Solar 7% Wind

*See Appendix A

© 2012 Chevron 8

Response Analysis

Nuclear Energy was a popular topic in the discussion, though it did not receive enough endorsement to make the top 5. Safety was the primary concern – if not a worry of the commenter, it was voiced that a collective negative sentiment, much of which stems from the earthquake, tsunami, and nuclear crisis that began on March 11, 2011 in Japan, would be too strong to overcome.

Nuclear Energy Comments (2011)

JanFeb Mar*

AprMay Jun

JulAug

SeptOct Nov

Dec

Safety Concerns No Safety Concerns Direct Mentions of Fukushima

*All comments in March were made after the 11th

810

12

14

16

64

2

0

Numb

er of

Comm

enter

s

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Individual Commenter Demographics

Masters Degree or Higher

Bachelors Degree

Other or Not Reported

Male

Female

65-75

55-65

45-55

35-45

25-35

0

Number of Commenters

Age

5 10 15 20 25 30 35 40 45

Education Gender

Approximate Commenter Age

36% 32%

32%

90%

10%

8

35

45

40

26

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Group Commenter Demographics

30 500 10 20 40

IL

MO

PA

MA

WA

LA

FL

NY

CA

TX

Commenter FrequencyTop Commenting States

163

8

8

18

1 to 3

4 to 6

7 to 9

10

people commented

people commented

people commented

people commented

times

times

times

times

or more

5

5

5

6

6

8

10

11

21

43

Number of Commenters

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Group Commenter Demographics

Top Industries Top Countries

Renewables & Environment Nigeria

Oil and Energy USA

Environmental Services Netherlands

Telecommunications Malaysia

Industrial Automation Indonesia

Airlines/Aviation Canada

Information Technology and Services UK

Financial Services India

103 159

4 2

4 2

9 7

8 6

5 5

4 2

4 2

© 2012 Chevron 12

External Perspectives on Emerging Energies

The following opinion polls serve to compare how the Chevron LinkedIn Group’s responses about emerging energy sources map to broader nationwide perspectives on this topic. This is for illustration purposes only and does not reflect Chevron’s opinion on this topic in any way.

© 2012 Chevron 13


In March 2011, a CNN/Opinion Research Corporation Poll* asked adults across the United States:

“In thinking about [America’s] future energy needs, which of these energy sources do you think we should rely on more and which should we rely on less?”

Results:

*See Appendix B

Solar Power

11% 17% 29% 57%88% 83% 70% 42%

More Less

Wind Power

Natural Gas

Nuclear Power

© 2012 Chevron 14


According to a Pew Research Center survey* taken of adults across the United States, a 10% shift was seen in favor of fossil fuels between 2011 and 2012. The Poll asked:

“Right now, which ONE of the following do you think should be the more important priority for addressing America’s energy supply?”

* See Appendix C

Results:

February- March 2011

March 2012

29% 39%63% 52%

Wind, Solar, Hydrogen Oil, Coal, Natural Gas

© 2012 Chevron 15


A Gallup Poll* surveyed adults across the United States in March 2011 and 2012, the year of and year after the tsunami in Japan, asking:

“Generally speaking, do you think nuclear power plants are safe or not safe?”

* See Appendix D

Results:

March 2011

March 2012

36% 40%

6% 4%

58% 57%

Safe Not Safe Unsure

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Appendix A

http://www.pickensplan.com/theplan As of June 18, 2012

ReutersBoone Pickens says still buying shale acreageMatt Daily, July 12, 2011

The Daily PickensPickens’ letter published in USA TodayThe Pickens Team, June 28, 2012

USA TodayLetters: Seize advantage of cheap natural gasT. Boone Pickens, June 27, 2012

There are several pillars to the Pickens Plan:

• Use America’s abundant natural gas to replace imported oil as a transportation fuel;• Build a 21st century backbone electrical transmission grid;• Develop renewable energy sources, such as wind and solar power; and,• Provide incentives to homeowners and the owners of commercial buildings to upgrade their

insulation and increase efficiency.

By investing in alternative energies while utilizing natural gas for transportation and energy generation, America can decrease its dependence on OPEC oil, develop the cutting-edge know-how to make wind and solar technology viable, and keep money at home to pay for the whole thing.

© 2012 Chevron 18

Appendix B

http://www.pollingreport.com/energy.htm

The Washington PostRenewable energy sees record $257 billion investment in 2011, solar drives much spendingAP, Published June 11

“Solar power”3/18-20/11

“Wind power”3/18-20/11

“Natural gas”3/18-20/11

“Coal”3/18-20/11

“Nuclear power”3/18-20/11

“Oil”3/18-20/11

More %

88

83

70

43

42

28

Less %

11

17

29

56

57

71

Unsure %

-

1

1

1

1

1

“In thinking about this country’s future energy needs, which of these energy sources do you think we should rely on more and which should we rely on less? . . .”

CNN/Opinion Research Corporation Poll. March 18-20, 2011. N=1,012 adults nationwide. Margin of error + 3.

© 2012 Chevron 19

Appendix C


3/7 - 11/12

2/22 - 3/1/11

Wind, solar, hydrogen

%

52

63

Oil, coal, natural gas

%

39

29

Give equal priority (vol.)

%

5

6

Unsure %

4

2

“Right now, which ONE of the following do you think should be the more important priority for addressing America’s energy supply? Developing alternative sources, such as wind, solar and hydrogen technology. Expanding exploration and production of oil, coal and natural gas.”

Pew Research Center survey. March 7-11, 2012. N=1,503 adults nationwide. Margin of error + 3.

© 2012 Chevron 20

Appendix D


Huffington Post WorldJapan Fukushima Disaster: Nuclear Reactor Still Has Fatally High Radiation Levels, Little WaterMari Yamaguchi, March 28, 2012

3/25 - 27/11

3/8 - 11/12

Safe %

58

Safe %

57

Not Safe %

39

Not Safe %

40

Unsure %

5

Unsure %

4

“Generally speaking, do you think nuclear power plants in the United States are safe or not safe?” N=527 (Form B), MoE + 5

“Generally speaking, do you think nuclear power plants are safe or not safe?” N=503 (Form B), margin of error ± 5.

Gallup Poll. March 25-27, 2011. N=1,027 adults nationwide. Margin of error + 4.

Gallup Poll. March 8-11, 2012. N=1,024 adults nationwide. Margin of error + 4.