Fit for the lower carbon future
What is ExxonMobil doing to prepare for a lower-carbon future while meeting energy needs of a growing population?
ExxonMobil plays a critical role in providing the energy that supports economic growth and improves the quality of life for people around the world. Major forecasts project energy demand to increase as the global population rises to well over 9bn by 2040, from 7.5bn today, and owing to growing prosperity and an expanding middle class, according to thinktank the Brookings Institution.
Even under 2°C and net-zero scenarios, meeting this increase in energy demand will require significant investment in new supplies of oil and natural gas, generally consistent with ExxonMobil’s investment levels. This is mainly due to the significant natural decline rates associated with oil and natural gas production. At the same time, there is a need to pursue further emissions-reduction efforts and technologies in support of the goals of the Paris Agreement.
Our company supports market-based approaches to reduce emissions, including further cost-effective regulation of methane and an economy-wide price on carbon. ExxonMobil believes market-based policies that place a uniform, predictable cost on carbon will drive emissions reductions at the lowest cost to society while supporting technology innovation and deployment.
Technology innovation is critical because the current solution set is insufficient to reduce emissions to targeted levels at an acceptable cost to society. According to the IEA, only six of 46 important technologies and sectors are on track to help society reach the Paris Agreement goals. Meeting these goals will require large-scale deployment of new technologies in key areas—power generation, commercial transportation and industrial processes—where emissions are most significant and forecast to increase.
Near-term actions ExxonMobil is taking to prepare for a lower-carbon future, include:
- Expanding supplies of cleaner-burning natural gas
- Improving energy efficiency in operations
- Operating and investing in carbon capture and storage
- Reducing flaring and methane emissions from operations
- Developing products, such as premium lubricants, lightweight plastics, and special tyre liners to help consumers improve efficiency and reduce emissions
- Advocating for effective climate policy to address the risks of climate change at the lowest societal cost.
Longer-term efforts include:
- Progressing advanced biofuels from algae and agricultural waste for commercial transportation and petrochemicals
- Researching breakthroughs to improve commerciality of carbon capture and storage technology for power generation and industrial applications
- Developing new and efficient technologies that reduce emissions in refining and chemical facilities.
In terms of LNG, ExxonMobil is progressing 12mn t/yr of low-cost LNG supply opportunities to the growing global demand. This includes potential projects in Papua New Guinea, Mozambique and in the US. As one of the largest natural gas producers in the US and a significant producer of LNG around the world, our company is well positioned to meet the future demand for these resources.
To learn more about ExxonMobil’s LNG business please visit exxonmobilLNG.com
Read more about how ExxonMobil is positioning for a lower carbon energy future by downloading the Energy & Carbon Summary https://corporate.exxonmobil.com/-/media/Global/Files/energy-and-carbon-summary/Energy-and-Carbon-Summary.pdf