Exxon Leaps From US Carbon Laggard to Leader

It’s been roughly two years since a proxy fight and board coup forced Exxon Mobil to shake off its climate lethargy. With an efficiency and diligence that is quintessentially Exxon, the major has since built the most robust low-carbon strategy among large US oil companies, save Occidental. As others sit holding minimally formed plans (ConocoPhillips), thin project queues (Chevron) or nonexistent diversification ambitions (most E&Ps), Exxon has plotted a path for substantial investments this decade while taking necessary steps for a 10-fold increase in scale as 2030 approaches. “It’s our immediate priority to build what we call our foundational projects,” Exxon Low-Carbon Solutions President Dan Ammann said, contrasting that with the high volume of non-binding agreements and studies for CCS facilities. The major is committing $7 billion through 2027 to projects tackling third-party emissions. These are backed with firm CCS deals in hand with hydrogen producer CF Industries and chemicals firm Linde. Ammann promised more agreements “soon.” Exxon will allot another $10 billion to decarbonize its own operations, including a CCS-supported hydrogen development at Baytown, Texas and “blue” hydrogen-fed biofuels addition at Strathcona near Edmonton. Contrast that with ConocoPhillips, which broadly lacks even early-stage agreements, and E&Ps like Pioneer Natural Resources, which intend to confine revenues to oil and gas.