ExxonMobil announces ambition for net zero greenhouse gas emissions by 2050

IRVING, Texas – ExxonMobil today announced its ambition to achieve net-zero greenhouse gas emissions for operated assets by 2050, backed by a comprehensive approach to develop detailed emission-reduction roadmaps for major facilities and assets.

ExxonMobil announces ambition for net-zero greenhouse gas emissions by 2050

  • Comprehensive approach centered on detailed Scope 1 and Scope 2 emission-reduction roadmaps for major operated assets 

  • Ambition supported by 2030 emission-reduction plans, including net-zero plans for Permian Basin operations

  • Company strategy tested for resiliency against a range of net-zero scenarios, including IPCC and IEA

The net-zero ambition is contained in the company’s Advancing Climate Solutions – 2022 Progress Report, formerly known as the Energy & Carbon Summary. The net-zero aspiration applies to Scope 1 and Scope 2 greenhouse gas emissions and builds on ExxonMobil’s 2030 emission-reduction plans, which include net-zero emissions for Permian Basin operations and ongoing investments in lower-emission solutions in which it has extensive experience, including carbon capture and storage, hydrogen and biofuels.

“ExxonMobil is committed to playing a leading role in the energy transition, and Advancing Climate Solutions articulates our deliberate approach to helping society reach a lower-emissions future,” said Darren Woods, chairman and chief executive officer. “We are developing comprehensive roadmaps to reduce greenhouse gas emissions from our operated assets around the world, and where we are not the operator, we are working with our partners to achieve similar emission-reduction results.”

The report provides details of how ExxonMobil’s business strategy is resilient when tested against a range of Paris-aligned net-zero scenarios, including the United Nations Intergovernmental Panel on Climate Change’s 2018 Special Report and the International Energy Agency’s Net Zero by 2050 scenario.

ExxonMobil’s Outlook for Energy, which is based on current policy and technology trends, continues to be the basis for the company’s business plans and investment decisions. In the Advancing Climate Solutions report, the company outlines how its short- and medium-term business plans are adjustable to developments in policy and technology and how it uses signposts and leading indicators to evaluate the need for any changes in future years.

Sound government policies will accelerate the deployment of key technologies at the pace and scale required to support a net-zero future. ExxonMobil continues to support an explicit price on carbon to establish market incentives and encourage investments in lower-emissions technologies.

ExxonMobil is also committed to helping customers reduce their greenhouse emissions by investing in carbon capture and storage, hydrogen and biofuels. Bio-based feed and plastic waste streams provide further opportunities for lowering greenhouse gas emissions.

“As we invest in these important technologies, we will advocate for well-designed, high-impact policies that can accelerate the deployment of market-based, cost-effective solutions,” said Woods. “We believe our strategy is unique among the industry and enables us to succeed across multiple scenarios. We will create shareholder value by adjusting investments between our existing low-cost portfolio and new lower-emission business opportunities to match the pace of the energy transition.”

To help reach net-zero for operated assets by 2050, the company has identified more than 150 potential steps and modifications that can be applied to assets in its upstream, downstream and chemical operations.

Initial actions already underway prioritize energy efficiency measures, methane mitigation, equipment upgrades and the elimination of venting and routine flaring. Further high-impact reduction opportunities include power and steam co-generation and electrification of operations, using renewable or lower-emission power. The company expects to finalize detailed roadmaps that address approximately 90% of operations-related greenhouse gas emissions by the end of this year, and the remainder will be completed in 2023.

Initial steps to achieve net-zero by 2050 are included in the company’s plans to invest more than $15 billion by 2027 on lower-emission initiatives. Policies further accelerating the development and deployment of lower-emission technologies could provide ExxonMobil with additional investment opportunities.

Advancing Climate Solutions – 2022 Progress Report is available online at exxonmobil.com. The report expands on the company’s 2030 greenhouse gas emission-reduction plans, which are consistent with Paris-aligned pathways, the U.S. and European Union’s Global Methane Pledge and the U.S. Methane Emissions Reduction Action Plan. Compared to emission levels in 2016, the time of the Paris Agreement, the 2030 plans include a 20-30% reduction in corporate-wide greenhouse gas intensity, which includes 40-50% reduction in upstream greenhouse gas intensity, 70-80% reduction in corporate-wide methane intensity, and 60-70% reduction in corporate-wide flaring intensity.

The 2030 emission-reduction plans are expected to achieve World Bank Zero Routine Flaring by 2030 and reduce absolute greenhouse gas emissions by an estimated 30% for the company’s upstream business and 20% for the entire corporation. Similarly, absolute flaring and methane emissions are expected to decrease by 60% and 70%, respectively, by 2030.

ExxonMobil has regularly updated emission-reduction plans as technologies and policies have evolved, and will continue to do so. When final data is collected and analyzed, the company expects to report it achieved its 2025 emission-reduction plans as of year-end 2021, including a 15-20% reduction in greenhouse gas intensity for its upstream operations, compared to 2016 levels.

ExxonMobil’s strategy is outlined in Advancing Climate Solutions and leverages its advantages in scale, integration, technology and people to build globally competitive businesses that lead the industry in earnings and cash flow growth across a broad range of future scenarios.

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About ExxonMobil

ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. To learn more, visit exxonmobil.com, the Energy Factor and Carbon capture and storage | ExxonMobil.

The Future Of Oil And Gas Is Sustainability

By Benjamin Beberness, Global Vice President, Oil & Gas Industry Business Unit, SAP

There is no easy way to put this; COVID-19 has been a one-two punch to the oil and gas industry from the consumer and commercial angles. With no need to travel to the office, vacations cancelled, and cargo ships at a standstill, the oil and gas industry has had to reconsider its strategy for a future. It’s clear that it will look very different from the recent past and will have to be much more sustainable. Add to this, increased tension with oil suppliers and you get the perfect storm that the industry is weathering currently. So how do you plan during such an unstable time? The solution lies in digitizing the oil and gas industry to prepare for the future of work and sustainability.

The duration of COVID-19’s impact on the industry is unknown, so devising a plan to adapt and digitize now is key to emerging from this global crisis in a strong position. While assessing the damage is important for moving forward, there are forward looking actions that oil and gas leaders can take now. After all, coronavirus is not the only factor that is fueling change in the industry. Sustainability, both in terms of the environment and company longevity, are on the minds of oil and gas executives around the world. They may be surviving this pandemic even though oil prices are plummeting, but there will always be another threat looming and growing expectations from investors to become more sustainable. This is why preparation now will pay dividends in the future.

The Current State of Oil and Gas

Oil and gas has been severely impacted by a chain reaction of events. Factories were forced to shut down, curbing the need for cargo ships and planes. Offices mandated professionals to log in from home, no longer requiring them to fill their tanks as often. Travelers cancelled their trips cutting the aviation sector’s typical 11% share of oil consumption in transportation. And as a result of all these realities, worldwide oil demand dropped considerably.

The Organization of the Petroleum Exporting Countries suggested global demand would fall by 6.8 million barrels a daythis year. While the worst is most likely behind us, as governments begin reopening municipalities, an ongoing contraction from previous highs is inevitable for the foreseeable future. But with that said, the oil and gas industry has put in significant effort to cut supply in order to minimize the blows dealt by such a major drop in demand.

Digitization Helps Oil and Gas Get Creative

The closing of offices around the world has put remote work to the test. And with many oil and gas companies relying on highly manual and in-person processes, this transition presented a number of speed bumps. However, Galp, a Portuguese oil and gas company, did not have to experience these setbacks. Even with their employees logging in from home, they set a new digital data platform live remotely to empower their modern infrastructure. This is especially notable because it is a first for such a traditional company and industry, and it paves the way for more forward thinking players in oil and gas that want to succeed, even while remote.

Galp isn’t the only company in the oil and gas space that is putting digital transformation front and center during this unprecedented time. In the past few weeks a steady stream of companies announced they would allow their workers to work from home for longer and longer periods of time due to the persistent threat of coronavirus and the proof that remote staff can be productive. Chevron CEO Mike Wirth in an interview with CERAWeek Daniel Yergin Stated “There will be a new paradigm on the other side of this. I don’t think that everybody will always work from home, but I also think the traditional model of where everybody comes to the same place and people get on planes to attend meetings … I think there will be changes” Twitter even declared that their employees would be able to work remotely permanently, so long as their positions didn’t require physical presence.

It’s entirely possible that other sectors will follow this lead and save on office space in the long run. And this, too, will impact oil and gas, as a lifestyle change away from the office will cut down on the amount of gas needed to transport professionals to offices and business meetings. Across industries, cost reduction has been a focus to ensure business continuity. Many companies are considering shedding custom code in exchange for market-based, standard solutions to dramatically reduce costs. And shedding offices could also be an essential way to save money going forward. That’s why the oil and gas industry need to make changes now in order to make the most out of what could be a permanent shift toward remote work. Digitization and automation help cut costs in a time where many other factors are largely out of a company’s control.

Shortening the Journey to Renewable Energy

Slowly, and then all at once, governments around the world were required to lower emissions and investors wanted more sustainable energy investment opportunities. In order for companies to properly measure and report out their progress, digital infrastructure must be in place properly. Repsol, Total, BP, Equinor, Shell and ENI are all part of the Oil and Gas Climate Initiative (OGCI) and have committed to a sustainable, “net-zero” version of their current selves in 2050. If the oil and gas industry standardized data collection, processing and storage going forward, then it would be much easier to determine which companies were on track to meeting their sustainability goals.

What’s Next for Oil and Gas

The oil and gas industry is due for a rebound, but the timing is unclear. A large reason for this is because oil and gas is at the bottom of the funnel for so many other industries. In order for oil demand to increase, so many other industries (like travel, manufacturing and retail) will have to open first to get people and products traveling again. Shifts in demand happened so quickly due to travel restrictions and mandatory quarantines, but the return to previous levels of travel and consumer confidence will take time. The winners of tomorrow will extend beyond the barrel and invest in renewables, digitization and diversification today.

Credit to Forbeshttps://www.forbes.com/sites/sap/2020/06/23/the-future-of-oil-and-gas-is-sustainability/?sh=634ac751747c

Find out how SAP is helping Oil and Gas companies prepare for a different future here.

SAP is the world’s leading provider of business software – enterprise resource planning, business intelligence, and related applications and services that help companies…

SAP is the world’s leading provider of business software – enterprise resource planning, business intelligence, and related applications and services that help companies…

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