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Steve Blume grew up on a farm in Kansas, but he’s not a stranger to south Louisiana, having briefly worked for Conoco in Lake Charles after college. But most of his career, 29 years’ worth, has been with the company now called ExxonMobil.

In 2003, Blume took over as manager of its Singapore refinery. He arrived in Baton Rouge to take the same job in August 2008, just in time for Gustav. But hurricanes notwithstanding, Blume and his family have had a smooth transition.

ExxonMobil has transitioned into the post-oil-price-bubble world, elbowing past Wal-Mart into the top spot on the Fortune 500 with $442.9 billion in revenue last year. Blume says a disciplined approach is a key to that success.

But it’s not all work all the time. The company plans numerous events this year to celebrate 100 years in Louisiana, culminating with a celebration at the River Center in November.

1. A prominent industry analyst said this: “ExxonMobil is not a fun place to work. They’re not in the fun business. They’re in the profit business.”

We’re very business-focused, but I wouldn’t say we’re not a fun place to work. We’re extremely disciplined. If you ask some of our folks at the refinery, I don’t think they’d ever say it’s a real fun place to work, but I don’t think they’d say you can’t have fun.

2. How does Exxon stay on top in an environment with lower oil prices?

Our focus is on disciplined capital investment, managing our operating expenses very tightly and making sure we’re investing money wisely. When the crude market was $150 a barrel, we didn’t lose that disciplined approach we had with capital investment, and now we’ve got the cash and we’re able to continue to invest at the same rate.

3. How does the recession affect how you do your job?

The scrutiny that we go through on a capital project really hasn’t changed. If it’s a good project, that doesn’t change whether we’re in a recession or not in a recession. For operating cost decisions, the margins are being squeezed, so there’s more pressure but not a lot. We’ve always had pressure on operating costs; we didn’t want to get sloppy in how we run our business.

4. Has the recession caused you to cut back production?

We are highly competitive, with a very good cost structure, and I would expect we would be one of the last to have to cut rates if margins continue to be squeezed. There may be adjustments month to month, but there hasn’t been a tremendous change from a year ago.

5. I suppose the number of employees is holding steady, but what about contractors?

We have had 750-plus contractors working on the $500 million low-sulfur diesel project. We’re always looking to streamline to reduce the number of contractors, but there’s not a big difference between what we had a year ago and what we have today.

6. How is the low-sulfur diesel project coming along?

It’s due to come online in the second quarter of 2010. It’s progressing on schedule, the cost is in line with what we had expected, safety has been outstanding with no reported injuries and the quality of the workforce has been very good. It’s going to allow us to make 15 parts per million sulfur diesel, which is what’s currently being sold for on-road applications but not nonroad applications, but that’s going to be changing in 2010. It’s required by regulation to reduce sulfur emissions, but it’s also the right thing to do for the environment.

7. Exxon has a reputation for being uninterested in, even hostile toward, alternative energy. Is that fair?

We recognize for this country to continue to grow and continue to increase the standard of living, we need all forms of energy. All that we ask is that there’s a level playing field. We would like for the free market to determine which forms of energy should be used.

8. But alternative energy often isn’t feasible without subsidies.

There is a role for government to provide for some of the basic research and development. It may get some of these energy sources started, but to continue to subsidize may not be the best solution. We’re always looking at ways to use our technology and our products to improve energy efficiency. We need for the energy we have to last as long as it possibly can.

9. What’s your take on cap and trade? [“Cap and trade” is a proposed system whereby the government would set an overall cap on emissions and assign pollution allowances to firms, then let those firms buy and sell the allowances amongst each other.]

If you want to tax carbon emissions, we think a better way is a direct tax. It’s much more transparent, it’s a lot easier to administer, and it’s a lot more efficient. There may be a need to put a tax on carbon emissions; that’s up to our government to decide.

10. Do you think the oil industry is unfairly demonized in some quarters?

We’re one of many opportunities for the American government to create jobs, and I think we should get a fair shot at that. Oil and gas is going to be around for a long time. We just need to make sure we have sound government policies that recognize the importance of oil and gas for the American economy.

A CENTURY OF EXXONMOBIL IN BATON ROUGE

1909 Filed charter to operate in the state as Standard Oil of Louisiana

1915 Followed corporate directive to establish the city’s first eight-hour work day

1924 Formed the Stanocola Medical and Hospital Association, Louisiana’s first HMO

Late 1920s Research labs adapted basic hydrogenation technology to petroleum refining

Early 1940s Pioneered the development of alkylation process for the production of high-octane aviation fuel for Allied aircraft in World War II

Early 1940s First in the industry to develop butyl rubber, helping Baton Rouge become known as the “Cradle of Synthetic Rubber Industry”

1942 Developed the world’s first catalytic cracking unit, helping to manufacture almost half of the 100-octane aviation fuel used during the war

1950s Developed the company’s “powerforming” process, which helped meet a higher demand for gasoline as automobile ownership increased

1970s Developed the Wet Gas Scrubbing process, which became an industry standard for environmental protection

1995 Developed Scanfining technology, reducing sulfur content in gasoline while maintaining octane level for smooth engine performance

SOURCE: ExxonMobil