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ExxonMobil’s climate change manifesto Report sets out company’s position on greenhouse gas emissions and the future challenges of meeting rising global energy demand Alan Bailey Petroleum News
Presumably responding to questions over the future of the petroleum industry in the light of concerns about the impact of carbon dioxide emissions on the climate, ExxonMobil has published a report setting out its position relative to climate change questions. While accepting that greenhouse gas emissions pose serious climate change risks, the report also comments on the importance of energy supplies in supporting global prosperity. The company suggests that the imposition of a carbon tax would be consistent with a policy objective of limiting carbon emissions in a free market environment. Dual challenge “Society continues to face the dual challenge of meeting energy demand to support the economic growth needed for improved living standards, while simultaneously addressing the environmental risks posed by rising greenhouse gas emissions and climate change,” the report says.
ExxonMobil says that it sees its mission as helping power the world’s progress by safely and responsibly producing and delivering energy supplies. And, with access to affordable energy raising standards of living, energy demand is expected to increase by 25 percent by 2040, even with improved energy efficiency, as the global population grows and the number of people enjoying middleclass lifestyles doubles.
In its report the company says that it wants to be part of the climate change solution by reducing greenhouse gas emissions from its operations; helping consumers reduce their emissions; supporting research into technologies that can develop economically feasible energy solutions that have lower carbon intensities; and participating in constructive dialogue on policy options.
Continuing need for oil and gas The report says that ExxonMobil’s annual Outlook for Energy publication points to a need for substantial ongoing development and investment in oil and natural gas. This conclusion is consistent with the findings of the International Energy Agency and the U.S. Energy Information Administration, the report says.
The IEA’s future energy scenario, based on limiting the global temperature increase to 2 degrees C by 2100, requires about 800 billion barrels of oil over the period 2016 to 2040, ExxonMobil’s report says. Between $11 trillion and $18 trillion will be required in upstream oil and gas investments, mainly to offset natural production declines. Currently, ExxonMobil contributes less than 3 percent of global production and remains well positioned to support the additional development to meet the anticipated demand, the report says.
The company expects all of the hydrocarbons in its current inventory of 20 billion barrels of oil-equivalent proved reserves to ultimately be produced rather than becoming stranded assets, the report says.
And the company uses a dynamic resource development approach to selectively invest in attractive opportunities, making development decisions that create long-term shareholder value, the report says.
Minimizing emissions At the same time, ExxonMobil has been minimizing the greenhouse gas emissions from its operations through initiatives such as efforts to reduce flaring and venting, and the implementation of emission reduction technologies such as the use of cogeneration plants for power generation. In addition, ExxonMobil has a working interest in about one quarter of the world’s carbon capture and storage capacity. The company has invested nearly $7 billion in technologies for reducing greenhouse gas emissions across its operations, the report says.
In terms of helping consumers reduce their emissions, ExxonMobil has been enabling improved energy efficiency and reduced carbon emissions through the improved performance of the company’s products, through the increased use of natural gas as a fuel, and through the development of new fuels, lubricants and chemical products, the report says.
The company has been conducting fundamental research into the development of energy solutions that lower the carbon intensity of energy use while also pioneering scientific research into next-generation energy sources such as algae biofuels, the report says.
Policy options In terms of policy options, ExxonMobil believes that there is a need to reduce climate change risks while maintaining a balance with other societal priorities associated with boosting living standards.
“We fundamentally believe that the free markets, innovation and technology are essential to addressing the risks of climate change,” the report says. “Policies need to be clear, effective and guard against duplicative, overlapping and conflicting regulations, which send mixed signals to the market and impose unnecessary costs on consumers.”
One policy option consistent with these principles would be a revenue-neutral carbon tax, the report says.
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