Oil major ExxonMobil has revealed its capital spending in 2021 will be in the range of $16 billion to $19 billion as well as its plans to focus on developing technologies to reduce emissions, especially carbon capture and storage technology, and eliminate routine flaring by 2030.
ExxonMobil’s 2021-2025 capital program has been optimized to the current market outlook with an investment strategy prioritizing the highest-return opportunities.
In a statement ahead of its annual investor day on Wednesday 3 March 2021, ExxonMobil outlined its plans through 2025 to increase earnings and cash flow to sustain and grow its dividend, reduce debt, and fund advantaged projects while working to commercialize lower-emission technologies in support of the goals of Paris Agreement.
ExxonMobil has long been the target of environmentalist attacks due to its position on climate change. The company has also been accused of being aware of the role of fossil fuels in global warming, but it has denied these claims.
Other oil majors – Shell, BP, Equinor, Total, and Eni – have all already pledged to become net-zero companies by 2050 or sooner.
They have also started investing in renewable projects like offshore wind. One of the more noticeable investments came from BP after it recently entered the Empire Wind and Beacon Wind projects off the U.S. for a price tag of $1.1 billion.
While the European oil and gas players have already set long-term dates for reaching emission reduction goals, ExxonMobil has been reluctant to do the same.
Back in February 2021, activist firm Engine No. 1, which has nominated four independent director candidates to the ExxonMobil board of directors, sent a letter to the oil major, claiming that it was falling short of what was expected regarding reaching climate goals set by the company.
