Exxon Mobil Corp., under increasing pressure from investors and climate change activists, reported for the first time the emissions that result when customers use its products such as gasoline and jet fuel.
The largest U.S. oil producer said the emissions from its product sales in 2019 were equivalent to 730 million metric tons of CO₂, higher than rival oil majors. The data comes as the company has drawn the ire of an activist investor focused on its climate performance.
The so-called Scope 3 data is included in its latest Energy & Carbon Summary released Jan. 5, though Exxon Mobil downplayed its significance. "Scope 3 emissions do not provide meaningful insight into the Company's emission-reduction performance," the report said. (Report: https://exxonmobil.co/3hL6Tmo)
RELATED:
Oil Major Exxon Mobil Boosts Emissions Reduction Target for 2025
"Even to get to the point of having them disclose this has been like pulling teeth," said Andrew Grant at think tank Carbon Tracker Initiative. "Quite a lot of the rest of the world has moved on from the disclosure to 'What are we going to do about this?'"
Most major oil companies already report Scope 3 emissions and some have reduction targets, including Occidental Petroleum Corp., which in November set a goal to offset the impact of the use of its oil and gas by 2050.
Exxon Mobil said it made the disclosure due to investor interest.
"They’re seeking dollars against companies that are disclosing Scope 3," said Danielle Fugere, president of As You Sow, a non-profit shareholder activist group. "I don't think they have any choice."
By 2025, Exxon Mobil targets reducing the intensity of its oilfield greenhouse gas emissions. It has not set an overall emissions target, though, so emissions could rise if production grows.
Last month, activist firm Engine No. 1 called for expanded spending and pay cuts, a board shake-up and shift to cleaner fuels. Its views are supported by California State Teachers' Retirement System, the Church of England, and echoed in part by hedge fund D.E. Shaw, which has $50 billion under management.
Recommended Reading
Powder in the Hole: Devon May Fire up its PRB in Coming Years
2024-08-23 - Devon Energy is perfecting its spacing and completion recipe in Wyoming’s Powder River Basin play to possibly unleash full-field development later this decade.
Devon Capitalizing on Bakken, Eagle Ford Refracs
2024-08-07 - Devon Energy’s Delaware Basin production dominated the quarter for the multi-basin E&P, but the company is tapping into recompletion opportunities to supplement production, executives said.
Avant Natural Resources Steps Out with North Delaware Avalon Tests
2024-08-21 - With the core of the Delaware Basin in full manufacturing mode, Avant Natural Resources is pushing an operated portfolio into the northern reaches of the New Mexico Delaware.
Tech Trends, URTeC Edition: Unconventional Solutions for Unconventional Resources
2024-07-16 - In this month’s Tech Trends, which takes place at the 2024 Unconventional Resources Technology Conference, new technologies are on display that ensure both efficient and sustainable operations.
The OGInterview: BPX E-fracs Push ‘Values Up, Emissions Down,’ CEO Says
2024-07-02 - BPX Energy CEO Kyle Koontz discusses the company’s role as the “nimble entrepreneurial” arm of supermajor BP in the Permian Basin and Haynesville and Eagle Ford shales.