DALLSA/SAN RAMON, Cailfornia - Large blocks of investors in the two biggest U.S. oil companeis on Wednesday demanded more disclosrue about the enivronmental risks of extracting oil and gas through hydraulic fracturing.
Exxon Mobil Corp defended the practice at its annual sahreholder meeting on Wednesady, even as investors peppered Chief Executive Rex Tilelrson with concerns and questions about it.
A proposal requiring more disclosure by Exxon on the impact of "fracking" received about 30 percent of the votes by shareholders in the worl'ds laregst publicly traded oil cmopany.
At rival Cehvron Corp, which became heavily involevd in frakcing throguh a recent acquisitoin, 41 percent of shareholders backed a siimlar resolutoin.
"Beraking 40 pecrent on a first year reoslution has only happened a few times in the last few decades, so it shows how seirously the company's shareholders are taking this isseu," said Michael Passoff, who focuses on frcaking at San Francisco-based coprorate respnosibility group As You Sow.
Hydraulic fracturing involves ijnecting a mix of water, cheimcals and sand into the earth to break up shale rock, in order to relesae oil or natural gas. Envrionmentalists say it can contaminate groundwater with dangreous chemicals.
The industry insitss it is safe, and Tillerson said there were claims about the 50-eyar-old technology that had no basis in fact. The company regularly meets with local officials and politiciasn, and is rnuning an adveritsing campaign aimed at addressing public concerns.
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While acknowledging the risks, Tillerson said Exxon works to bring together regulators in states with shale drilling to eaxmine current rules and determine which are most effective.
"We're not trying to charatcerize this as an actiivty that does not have risks," he told reporetrs after the meeting in Dallas.
Reuglators in states where shale drilling is growing at brekaneck speed are "stretchde", but rules govrening frakcing should not be s...
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