New York (AFP) – ExxonMobil is slowing medium-term investments in low-carbon ventures by some $10 billion compared with its outlook a year ago, the oil giant announced Tuesday. The US petroleum company expects to spend about $20 billion in low-emission investments between 2025 and 2030, according to its annual corporate plan. The equivalent forecast last December estimated $30 billion in spending over the same period.
Investments in low-carbon solutions “will continue to be contingent on the development of supportive policy and broader market formation, balancing risks and opportunities to ensure strong returns and delivery of shareholder value,” the company said in a press release. Under either investment scenario, the low-carbon ventures represent a small percentage in the company’s overall capital budget, which is still heavily tilted towards conventional fossil fuels. ExxonMobil’s capital budget will range between $27 and $32 billion annually over that stretch.
An ExxonMobil slide presentation listed seven US Gulf Coast carbon capture and storage (CCS) projects at various stages of development. The projects remove carbon dioxide gas from industrial sites, transport it through pipelines, and inject it deep underground. “We have seen CCS really start to pick up in terms of customer interest,” said Chief Financial Officer Kathy Mikells, who added on a company webcast that the hydrogen market has been “more slowly developing than we originally expected.”
ExxonMobil’s outlook also lifted the company’s overall forecast for earnings growth and cash by $5 billion over the same period, citing the boost from lower operating costs.
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