ExxonMobil lifts spending on emission reduction plan to $15B

The logo for ExxonMobil appears above a trading post on the floor of the New York Stock Exchange, April 23, 2018. (File photo: AP)

ExxonMobil says it is boosting its spending on greenhouse gas emission-reduction projects to $15 billion over the next six years and anticipates meeting its 2025 greenhouse gas emission-reduction plans by the end of this year.

The energy giant said the $15 billion will go toward projects focused at reducing greenhouse gas emissions from existing operations and increased investments in the low carbon solutions business.

As part of its greenhouse gas emission-reduction plans, ExxonMobil anticipates year-end 2021 results showing a reduction of 15% to 20% in greenhouse gas intensity from upstream operations compared to 2016 levels, four years ahead of schedule. The company said the figure is supported by an anticipated reduction of 40% to 50% in methane intensity and 35% to 45% in flaring intensity compared to 2016.

Looking ahead, ExxonMobil said that it expects to lower absolute corporate-wide greenhouse gas emissions by approximately 20% by 2030. It foresee a 70% to 80% reduction in corporate-wide methane intensity and 60% to 70% reduction in corporate-wide flaring intensity by that year.

ExxonMobil's announcement comes at a time of increasing scrutiny on escalating gas prices and the use of oil reserves. Last week President Joe Biden ordered a record 50 million barrels of oil released from America's strategic reserve, looking to bring down gasoline and other costs.

The Strategic Petroleum Reserve is an emergency stockpile to preserve access to oil in case of natural disasters, national security issues and other events. Maintained by the Energy Department, the reserves are stored in caverns created in salt domes along the Texas and Louisiana Gulf Coasts. There are roughly 605 million barrels of petroleum in the reserve.

ExxonMobil also said Tuesday that it plans to keep capital investments between $20 billion and $25 billion per year through 2027. The company said there's room to adjust the figure to adverse market conditions or changes in policy and technology for low-emissions projects.