Business & Investment

ExxonMobil declares new target for carbon emissions per barrel

ExxonMobil expands its goal of reducing the amount of carbon dioxide emitted in each barrel of pumped oil and applies it to the entire enterprise, but avoids significant emission reductions approved by European rivals. ..

The US Energy Super Major said it aims to reduce company-wide greenhouse gas intensity by 20-30% by 2030. Exxon’s previous goal was to reduce strength by 15-20% by 2025 for “upstream” or oil and gas production. , The business it said was achieved this year.

The updated emissions and capital investment plans announced on Wednesday are the first since Exxon. Lost the board of directors In a proxy dispute with activist hedge fund Engine No. 1, the company claimed it wasn’t ready for a low-carbon future.

Andrew Logan, senior director of oil and gas at Ceres, which coordinates investor behavior on climate change, said the new emission targets are “significantly inadequate” and Exxon has more ambitious targets. We have lost the ground compared to other companies. “

“It’s still in the early stages,” Logan added, but “it’s hard to find signs that the company’s basic approach to dealing with climate change has changed with the addition of new board members.” Stated.

Carbon strength is a measure of emissions per unit of output. Activists have criticized Exxon for using this standard rather than absolute emissions, as it can increase total emissions when fossil fuel production increases. However, Exxon said the updated plan would reduce “company-wide” emissions by 20 percent by 2030.

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Exxon’s goal is limited to emissions from the business, not from the consumers who burn the fuel they sell. With BP Royal Dutch shellExxon’s European peers say they will reduce oil and gas production over time to meet emission targets, including fuel combustion.

By the end of 2027, Texas-based Exxon will spend a cumulative $ 15 billion, or about $ 2.5 billion annually, on new emission reduction efforts. Planned total capital spending will be between $ 20 billion and $ 25 billion annually by the end of 2027, up from about $ 16 billion in this year’s pandemic budget.

Charlie Penner, who recently ran the No. 1 engine campaign against Exxon before leaving the fund, said, “The focus is on building a scalable and profitable business rather than generating ads. If so, he said the increase in low-carbon spending would be positive.

Chevron, Exxon’s biggest competitor in the United States, announced in September Spend $ 10 billion A low-carbon venture until the end of 2028. Both companies have promised a much lower share of total spending on clean energy than their European rivals.

Planned capital investment in Exxon remains $ 35 billion Before the pandemic pushed down global oil demand, the company planned on annual spending. Engine No. 1 claimed in a proxy campaign earlier this year that management was overspending and endangering Exxon’s valuable dividends.

Oil super majors are having fun Rapid increase in profits This year, mainly due to rising oil and gas prices. Darren Woods, CEO of Exxon, said the company’s “improved financial outlook” underpins “increasing investment in high-margin projects and increasing the list of financially increasing low-emission business opportunities.” Said that.

Much of Exxon’s future spending will focus on projects in Guyana. In Guyana, large amounts of crude oil were found off the coast of South American countries, and the largest US oil fields in the Permian Basin of Texas and New Mexico.

According to the company, the plan will double revenue by 2027 compared to $ 14.3 billion in 2019.

The $ 15 billion low carbon spending will be split into new carbon capture and storage (CCS, hydrogen, biofuel projects) and efforts to reduce emissions from our businesses, primarily by reducing methane leaks and gas flares.

This year, the company outlined the potential of carbon capture and biofuel projects. $ 100 Billion CCS Mega Hub In Houston, however, many of those projects need to build government subsidies or carbon prices.

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ExxonMobil declares new target for carbon emissions per barrel

https://www.ft.com/content/a135d3a4-1060-406a-a648-29fad6f66526 ExxonMobil declares new target for carbon emissions per barrel

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