In recent years, the oil giant Exxon Mobil Corp is not positive about energy transformation, and his negative attitude towards carbon neutralization has caused a backlash from investors and other investors.
Under pressure from investors, Exxon Mobil Corp recently announced a goal:Net zero carbon emissions will be achieved by 2050.
Exxon Mobil Corp also announcedA series of clear "roadmaps" will be released by the end of 2022 to show how it will reduce emissions from each major business.
For the Texas-based "old school" oil giant, this commitment is not only a big step forward, but also means a major strategic shift for Exxon Mobil Corp.
Once refused to commit to a net zero carbon emission target
In March 2020, Exxon Mobil Corp refused to set a target for net zero carbon emissions by 2050, saying that the ambitious carbon reduction targets set by competitors such as BP and Shell were "for show", arguing that the promised targets lacked specific plans to achieve.
However, Exxon Mobil Corp was soon "slapped in the face" by himself due to pressure from investors on carbon emissions.
In May last year, a fierce battle for agency took place at Exxon Mobil Corp's shareholders' meeting. Exxon Mobil Corp lost three board seats and was replaced by someone from hedge fund Engine No. 1.
New board members want the oil company to transform energy faster. After that, Exxon Mobil Corp began to prepare to invest in clean energy.
The transformation of the oil giants
On Tuesday, the Financial Times quoted Exxon Mobil Corp CEO Darren Woods as saying:
We are committed to playing a leading role in the energy transformation and pushing governments around the world to tighten climate policies, such as taxing carbon. It is possible that we will continue to expand oil and gas production in the next few years, but at the same time ensure that we meet operational emission reduction targets.
It is reported that Exxon Mobil Corp will rely on low-carbon technology to solve the problem of carbon emissions. It said it would work to eliminate conventional combustion of natural gas and methane leaks in equipment, use renewable energy to power operations, and seek to deploy hydrogen energy.
In addition, Peter Trumberg, Exxon Mobil Corp's environmental policy and planning manager, also pointed out that carbon credits can be used to offset emissions that Exxon Mobil Corp cannot eliminate.
Last year, the International Energy Agency (IEA) released a net zero road map, saying that no new oil and gas projects should be developed if the goal of limiting global temperature rise to 1.5C was to be achieved.
Woods said Exxon Mobil Corp had simulated the IEA net zero roadmap. He also said his business remained resilient even as it accelerated its transition from oil.
It is worth mentioning that the recent surge in oil and gas prices enabled Exxon Mobil Corp to achieve ultra-high revenue and profits again after the COVID-19 epidemic.