Page 5 - NorthAmOil Week 03 2022

NorthAmOil COMMENTARY NorthAmOil

The new target builds
on ExxonMobil’s
pledge to reach net
zero emissions in the
Permian Basin by
2030.

ExxonMobil’s description of the target as stated. “We believe our strategy is unique among
an ambition comes after fellow US super-ma- industry and enables us to succeed across mul-
jor Chevron unveiled a net-zero “aspiration” tiple scenarios. We will create shareholder value
in October 2021. In both cases, the wording by adjusting investments between our existing
appears cautious, which comes as no surprise low-cost portfolio and new lower-emission
given the challenges involved in achieving net business opportunities to match the pace of the
zero, especially for large companies. Often energy transition.”
such plans incorporate technologies that have The company said it had identified more than
yet to be proved. However, while Chevron is 150 steps it can take and modifications it can
aiming for net zero across Scopes 1 and 2 as make to assets across its operations – whether
well, it said it would incorporate Scope 3 into upstream, midstream or downstream – in order
its GHG emission targets, in contrast with to reach its net-zero target by 2050. Initially, it
ExxonMobil. intends to invest more than $15bn by 2027 into ExxonMobil’s
Others too are taking a tougher line on Scope lower-emissions initiatives.
3, including BP and Shell. ExxonMobil estimates that its GHG emis- Scope 3
sions on an operated basis totalled 99mn emissions
What next? tonnes in 2020, while on an equity basis they
The ExxonMobil statement this week gives reached 111mn tonnes that year. It is worth for 2020 are
some indication of what can be expected next, noting, though, that ExxonMobil, like most
but many of the details still need to be worked oil and gas companies, scaled back operations estimated at
out. ExxonMobil’s CEO, Darren Woods, said in 2020 owing to the onset of the coronavirus
the company was developing “comprehensive (COVID-19) pandemic and its initial impact on 540mn tonnes.
roadmaps” for reducing emissions from its energy demand. Thus emissions in 2021 – data
assets across the world. The super-major also for which are not yet available – could be higher
continued to voice its support for a carbon tax to thanks to rising demand even as decarbonisa-
help incentivise investment in lower-emissions tion efforts were underway.
technologies. ExxonMobil’s Scope 3 emissions for 2020
Indeed, it also said it wanted to invest in tech- are estimated at 540mn tonnes. Given the
nologies including carbon capture and storage fact that they are almost five times bigger
(CCS), hydrogen and biofuels. than the super-major’s Scope 1 and 2 emis-
“As we invest in these important technologies, sions, Scope 3 emissions are likely to increas-
we will advocate for well-designed, high-impact ingly be in the spotlight, with environmental
policies that can accelerate the deployment of groups in particular calling for more to be
market-based, cost-effective solutions,” Woods done to address them.™

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