University Research for Sale to Big Oil

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University Research for Sale to Big Oil

Written by Miranda Marquit

Monday, 21 May 2007 13:26

Big Oil is buying the good reputations associated with many prestigious universities in the hopes that it will "green wash" company images, get the public and Congress off their backs and increase sales. By now it's no surprise that ExxonMobile (XOM) has no interest in investing in alternative energy fuels and technology. However, that doesn't stop the company from trying to justify its anti-environment policies for the sake of gain. Just recently, a Stanford University professor published a study knocking ethanol, claiming that it would actually be more harmful than the continued use of gasoline. Where did he get his funding? At an institute sponsored with $100 million from Exxon.

But ExxonMobile isn't the only company trying to "green wash" its image. The San Jose Mercury News reports that many colleges and universities are turning to Big Oil for money:

Exxon Mobil's $100 million to Stanford University's Global Climate and Energy Program made the school one of the first Big Oil U campuses. Among other schools that have joined are UC-Davis' Bioenergy Research Group with $25 million from Chevron (CVX); Princeton's Carbon Mitigation Initiative with $15 million from BP (BP); and Iowa State University with $22.5 million from ConocoPhillips (COP). Just last week, Duke University announced a $1 million pledge from ConocoPhillips.

These deals all pale in comparison to BP's half-billion-dollar plan at UC-Berkeley. It will probably influence all others because of its magnitude and the school's prestige. And in a particularly troublesome aspect, the deal envisions placing 50 BP scientists on campus to do proprietary - that is, secret - research for the oil company. That means they can suck up everyone else's ideas and need not share their own.

And that Big Oil money, in return, pays for research that is guided, in part, by Big Oil interests. Exxon, since it refuses to invest in alternative energy, has a big stake in discrediting the use of alternative fuel sources. After all, the company, through old rights in the Middle East, pumps oil at a ridiculously low rate (which is why its earnings -- and stock values -- are quite high). As Big Oil defends itself on Capitol Hill, more accusations are about to fly.

But what about BP's planned foray into university research? If the deal is approved, BP plans to send its own scientists to UC-Berkeley to do research. The idea is to be able to use Berkeley's prestige as a well-respected progressive campus to hide the suspect nature of its research. This is somewhat disconcerting, since BP was among the first Big Oil companies to begin investing in alternative energy.

So, what's the plan now? BP stock is heading up, and as people become more environmentally conscious, it could be a good thing to be seen as a progressive Big Oil company, backed up with research from a progressive and prestigious university. This means that BP, with its stock on the rise, but still significantly lower than ExxonMobile's, could be the next great value in Big Oil stocks.

Disclosure: I do not own any of the stocks listed in the above, and oil company stocks do not make up any part of the mutual funds in which I invest. However, I am considering purchasing BP shares.

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