Why Do Oil and Gas Companies Partner With Universities?

I commend Tim Lieuwen’s thoughtful approach, laid out in “When Oil and Gas Companies Go to School” (Issues, Fall 2024), to bridging the gap between the oil and gas industry and university research communities. His balanced framework is refreshing and should inspire university boards, administrators, and faculty to reevaluate their perspectives on industry-funded research.

As ExxonMobil’s lead representative to Stanford University’s Global Climate and Energy Program (GCEP) for nearly a decade, I witnessed firsthand how such collaborations operate. ExxonMobil, a founding sponsor alongside Schlumberger, GE, Toyota, and DuPont, contributed to the $225 million program by consolidating its scientific input with that of other sponsors and Stanford faculty. Beyond working with GCEP, I helped shape ExxonMobil’s research partnerships with the Massachusetts Institute of Technology, Princeton University, the University of Texas, and others—some of which faced criticism in the congressional report that Lieuwen references.

Contrary to public perception, oil and gas companies do not enter into research agreements with universities to exploit research for commercial gain or to greenwash their image. Instead, these partnerships serve two main purposes: identifying talent and obtaining unbiased assessments of emerging technologies. In the energy field, university research outcomes infrequently produce direct commercial breakthroughs. Universities often overestimate the immediate applicability of their discoveries. Oil and gas companies, recognizing the low probability of transformative outcomes, now typically seek only licensing rights rather than ownership of intellectual property.

Lieuwen’s conflict-of-interest framework is well-considered, but limiting research to specific commercial goals is challenging. Academic and industry research often leads to serendipitous applications—a carbon dioxide separation material, for instance, might also prove useful in methane extraction. Practical expertise from industry partners further enhances university research by identifying promising avenues and avoiding unproductive ones.

Unfortunately, the politicization of industry funding undermines these mutually beneficial relationships. It is disheartening to see such collaborations cast in a negative light by the 2024 bicameral congressional report that Lieuwen cites, Denial, Disinformation, and Doublespeak: Big Oil’s Evolving Efforts to Avoid Accountability for Climate Change.

As Lieuwen notes, the oil and gas sector brings valuable expertise to the energy transition, including project management, deep understanding of geophysics, and experience in advancing energy efficiency. With over 2,200 PhDs among its engineers, ExxonMobil values academic partnerships deeply.

Both universities and industry stand to lose if these vital relationships are severed.

Thomas F. Degnan Jr.