Exxon Mobil Corp. has been Planning to Increase Annual Carbon-Dioxide Emissions by as much as the Output of the entire Nation of Greece, an Analysis of Internal Documents shows, Setting One of the largest Corporate Emitters against International Efforts to Slow the Pace of Warming.
The Drive to Expand both Fossil-Fuel Production and Planet-Warming Pollution comes at a time when some of Exxon’s Rivals, such as BP Plc and Royal Dutch Shell Plc, are Moving to Curb Oil and Zero-Out Emissions. Exxon’s own Assessment of its $210 Billion Investment Strategy shows Yearly Emissions Rising 17% by 2025, According to the Internal Documents.
The Largest U.S. Oil Producer has never made a Commitment to Lower Oil and Gas Output or Set-a-Date by which it will become Carbon Neutral, and its Near-Term Plans have been Disrupted by Fallout from the Covid-19 Pandemic. Exxon has also Never Publicly Disclosed its Forecasts for its own Emissions.
But the Planning Documents show for the First Time that Exxon has carefully assessed the Direct Emissions it expects from the Seven-Year Investment Plan adopted in 2018 by Chief Executive Officer, Darren Woods. The additional 21 Million Metric Tons of Carbon Dioxide per year that would Result from Ramping-Up Production dwarfs Exxon’s Projections for its own efforts to Reduce Pollution, such as Deploying Renewable Energy and Burying some Carbon Dioxide.
These Internal Estimates reflect only a Small Portion of Exxon’s Total Contribution to Climate Change. Greenhouse Gases from Direct Operations, such as those Measured by Exxon, typically Account for a Fifth of the Total at a Large Oil Company. Most Emissions come from Customers Burning Fuel in Vehicles or other End Uses, which the Exxon Documents don’t account for.
That means the Full Climate Impact of Exxon’s Growth Strategy would likely be Five Times the Company’s Estimate, or about 100 Million Tons of Additional Carbon Dioxide, had the Company Accounted for so-called Scope 3 Emissions. If its Plans are realized, Exxon would Add to the Atmosphere the Annual Emissions of a Small, Developed Nation, or 26 Coal-Fired Power Plants.
The Emissions Projections are “an early assessment that does not include additional mitigation and abatement measures that would have been considered as the next step in the process,” Exxon said in a Statement. “The same planning document illustrates how we have been successful in mitigating emissions in the past.”
Exxon often Defends its Growth Plans by citing International Energy Agency (IEA) Estimates that Trillions of Dollars of New Oil and Gas Investments are needed by 2040 to Offset Depletion from Existing Operations, even under a Range of Climate Scenarios. However, Experts say a Reduction in Global Oil and Production is necessary to Limit Warming to 1.5 Degrees Celsius above Pre-Industrial Levels.
The Collapse of Oil Demand forced Exxon to Cut its Spending Budget by a Third in April, and its Share Price is currently hovering near an 18-year Low. Exxon was Removed from the Dow Jones Industrial Average earlier this year. The Company last week Warned of a Third Consecutive Quarterly Loss, meaning it’s relying on Debt to Pay Capital Expenditures and Dividends.
As recently as July, however, Exxon indicated that it’s merely delaying many projects to preserve cash during the downturn rather than canceling them. Fulfilling the plan would mean producing an additional 1 million barrels of oil a day. The emissions generated by the extra drilling and refining would increase the company’s greenhouse gas emissions to 143 million tons of CO₂ equivalent per year, the internal documents show.
It’s past time for Exxon Mobil to take Responsibility for the Harmful Impacts of its Oil and Gas Products. The World-at-Large and its own Investors would Benefit from Exxon Redirecting its Strategy toward the Energy we Need in a Low-Carbon Future.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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