Exxon Mobil, Chevron and Occidental Petroleum are joining a group of major international oil and gas companies in an initiative aimed at curbing carbon emissions in the sector, the companies said in a statement Sept. 20.
The move marks a U-turn for Exxon Mobil and Chevron. The top two U.S. oil and gas producers had resisted joining the Oil and Gas Climate Initiative (OGCI) after its launch in 2014.
Together with its three newest members, the group will account for about 30% of global oil and gas production and 20% of primary energy consumption, Total CEO Patrick Pouyanne said in a tweet.
“The addition of 3 U.S. companies gives us more impact to lead the industry’s response to climate change,” he wrote.
The OGCI currently comprises 10 firms including BP, Royal Dutch Shell, France’s Total as well as national oil companies of China, Mexico, Brazil and Saudi Arabia. The announcement comes ahead of Climate Week in New York next week, a global gathering of world and company leaders around climate change.
“We are pleased to be joining OGCI to work constructively on addressing the risks of climate change,” Chevron CEO Michael Wirth said in the statement.
The OGCI created a $1 billion fund to develop technologies to reduce emissions of greenhouse gases in the sector as the world aims to shift towards a low-carbon economy.
Exxon in recent years came under fire from investors and faced lawsuits over its climate policies and disclosures. It will expand its investment in greenhouse gas emission-reduction research as part of the initiative, the company said in a statement.
Earlier this year, Exxon pledged to reduce its methane emissions by 15 percent by 2020 and last year began an equipment upgrade at its XTO Energy shale business unit to cut emissions during production.
“It will take the collective efforts of many in the energy industry and society to develop scalable, affordable solutions that will be needed to address the risks of climate change,” Exxon CEO Darren Woods said in the statement. “Our mission is to supply energy for modern life and improve living standards around the world while minimizing impacts on the environment. This dual challenge is one of the most important issues facing society and our company."
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fifth Week in Six, Baker Hughes Says
2024-09-20 - U.S. energy firms this week resumed cutting the number of oil and natural gas rigs after adding rigs last week.
Western Haynesville Wildcats’ Output Up as Comstock Loosens Chokes
2024-09-19 - Comstock Resources reported this summer that it is gaining a better understanding of the formations’ pressure regime and how best to produce its “Waynesville” wells.
August Well Permits Rebound in August, led by the Permian Basin
2024-09-18 - Analysis by Evercore ISI shows approved well permits in the Permian Basin, Marcellus and Eagle Ford shales and the Bakken were up month-over-month and compared to 2023.
Kolibri Global Drills First Three SCOOP Wells in Tishomingo Field
2024-09-18 - Kolibri Global Energy reported drilling the three wells in an average 14 days, beating its estimated 20-day drilling schedule.
Permian Resources Closes $820MM Bolt-on of Oxy’s Delaware Assets
2024-09-17 - The Permian Resources acquisition includes about 29,500 net acres, 9,900 net royalty acres and average production of 15,000 boe/d from Occidental Petroleum’s assets in Reeves County, Texas.