Exxon Mobil ups spending on emission-reduction plan
Exxon Mobil Corp says it is boosting its spending on greenhouse gas emission-reduction projects to US$15 billion over the next six years and anticipates meeting its 2025 greenhouse gas emission-reduction plans by the end of this year.
The energy giant said the US$15 billion will go towards projects focused at reducing greenhouse gas emissions from existing operations and increased investments in the low carbon solutions business.
As part of its greenhouse gas emission-reduction plans, Exxon Mobil anticipates year-end 2021 results showing a reduction of 15 per cent to 20 per cent in greenhouse gas intensity from upstream operations, compared to 2016 levels, four years ahead of schedule. The company said the figure is supported by an anticipated reduction of 40 per cent to 50 per cent in methane intensity, and 35 per cent to 45 per cent in flaring intensity, compared to 2016.
Looking ahead, Exxon Mobil said that it expects to lower absolute corporate-wide greenhouse gas emissions by approximately 20 per cent by 2030. It foresees a 70 per cent to 80 per cent reduction in corporate-wide methane intensity, and 60 per cent to 70 per cent reduction in corporate-wide flaring intensity by that year.
Exxon Mobil’s announcement comes at a time of increasing scrutiny on escalating gas prices and the use of oil reserves. Last week, US President Joe Biden ordered a record 50 million barrels of oil released from America’s strategic reserve, with the aim of bringing down gasolene and other costs.
The Strategic Petroleum Reserve is an emergency stockpile to preserve access to oil in case of natural disasters, national security issues and other events. Maintained by the Energy Department, the reserves are stored in caverns created in salt domes along the Texas and Louisiana Gulf Coasts. There are roughly 605 million barrels of petroleum in the reserve.
Exxon Mobil also said it plans to keep capital investments between US$20 billion and US$25 billion per year through to 2027. The company said there’s room to adjust the figure to adverse market conditions or changes in policy and technology for low-emissions projects.