ExxonMobil plans to focus on developing technologies to reduce emissions
This year, oil major ExxonMobil has revealed that
its capital spending will be in the range of $16 billion to $19 billion and plans
to focus on developing technologies to reduce emissions, especially carbon
capture and storage technology, and eliminate routine flaring by 2030.
ExxonMobil’s 2021-2025 capital programmes has
been optimized to the current market outlook with an investment strategy
prioritizing the highest-return opportunities.
In a statement ahead of its annual investor
day, ExxonMobil outlined its plans through 2025 to increase earnings and cash
flow to sustain and grow its dividend, reduce debt, and fund advantaged
projects while working to commercialize lower-emission technologies in support
of the goals of Paris Agreement.
ExxonMobil has long been the target of
environmentalist attacks due to its position on climate change. The company has
also been accused of being aware of the role of fossil fuels in global warming,
but it has denied these claims.
Other oil majors – Shell, BP, Equinor, Total,
and Eni – have all already pledged to become net-zero companies by 2050 or
They have also started investing in renewable
projects like offshore wind. One of the more noticeable investments came from
BP after it recently entered the Empire Wind and Beacon Wind projects off the
U.S. for a price tag of $1.1 billion.
While the European oil and gas players have
already set long-term dates for reaching emission reduction goals, ExxonMobil
has been reluctant to do the same.
“We are fully committed to growing
shareholder value by meeting the world’s energy demands today and pursuing a
technology-driven strategy to succeed through the energy transition”, Darren
Woods, chairman and chief executive officer, said at the company’s annual
“Our investment portfolio is the best we’ve
had in over 20 years, and will grow earnings and cash flow in the near term
while remaining flexible to market conditions and benefiting from ongoing
“Looking ahead, we’re working to reduce our
emissions and develop solutions, such as carbon capture and low-carbon
hydrogen, needed to de-carbonize the highest emitting sectors of the economy –
a critical requirement for society to achieve its net-zero ambition”.