Yahoo Finance ExxonMobil (XOM) Commits to Reach Net-Zero Emissions by 2050
Exxon Mobil Corporation XOM announced its pledge to achieve net-zero emissions from its operations by 2050.
Energy companies have been under immense pressure due to the growing urgency from investors and environmentalists to curb climate change. ExxonMobil has set detailed targets for reducing emissions from major facilities and assets. Hence, the oil giant can effectively drive the transition to clean energy.
ExxonMobil's net-zero plan involves emissions associated with its oil, gas and chemical production. XOM also commits to carbon neutrality for its Scope 1 and Scope 2 greenhouse gas emissions by 2050. However, the plan doesn’t cover emissions from the use of its products, including gasoline and other fuels, which constitute the majority of XOM’s emissions. It also doesn’t involve oilfields and other non-operating assets.
In 2020, ExxonMobil released the equivalent of 111 million tons of carbon dioxide from its facilities, suggesting a 6% decline from the previous year. XOM is taking a systematic approach to support the transition to a low-carbon, more resilient future. The company identified more than 150 feasible measures and modifications, which can be applied to assets in its upstream, downstream and chemical operations.
In December 2021, ExxonMobil pledged to achieve net-zero emissions from operated assets in the Permian Basin by 2030. The move was part of a company-wide effort to reduce upstream greenhouse gas emission intensity by 40-50% by 2030 from the 2016 levels.
ExxonMobil’s plan is well-aligned with the Oil and Gas Climate Initiative, aiming to boost the industry's response to climate change. XOM aims to reduce carbon emissions by checking methane leaks, updating equipment and electrifying production operations.
ExxonMobil intends to spend $15 billion on low-carbon projects through 2027. This comprises technological developments that are currently non-commercial such as carbon capture and storage, hydrogen power, and biofuel from algae.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Shares of ExxonMobil have outperformed the industry in the past three months. The XOM stock has gained 18.2% compared with the industry's 9.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
ExxonMobil currently flaunts a Zack Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Royal Dutch Shell plc (RDS.A) is a fully integrated energy company as it participates in every aspect related to energy, from oil production to refining and marketing. As of 2020-end, Shell likely had proved reserves of 9.1 billion barrels of oil equivalent.
The BG acquisition has made Shell the largest liquefied natural gas (or LNG) producer in the world. With LNG demand likely to rise significantly in the near to medium term, RDS.A’s position as a major supplier of LNG should help the company meet the fuel’s growing demand and aid cash flow improvement.
Equinor ASA EQNR is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. Over the years, EQNR has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays.
Equinor’s key strategy is to capitalize on the renewable energy space and align operations with the Paris Climate Agreement. Thus, to combat climate change, EQNR is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost production capacities from renewables to 4-6 GW by 2026.
PetroChina Company Limited PTR is the largest integrated oil company in China. PetroChina is one of the largest producers of crude oil and natural gas in the world. The company’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to natural gas.
PetroChina currently has a Zacks Style Score of A for both Value and Momentum. In the first six months of 2021, PTR’s upstream segment posted an operating income of RMB 30.9 billion, nearly tripling from the year-ago profit of RMB 10.4 billion.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
PetroChina Company Limited (PTR) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
