Exxon Mobil CEO Rejects IEA Criticism of Carbon Capture Strategy

Darren Woods Defends Carbon Capture Strategy

Exxon Mobil CEO Darren Woods has dismissed the International Energy Agency’s criticism of using wide-scale carbon capture to combat climate change, comparing the skepticism to that surrounding electric vehicles and solar energy.

Woods Challenges IEA’s Claims

Woods stated that no solution at present is large enough to address the climate crisis, including carbon capture, electric vehicles, wind, and solar energy. He emphasized the need for legitimate criticism in addressing these issues.

Efforts to Combat Climate Change

While commercially viable carbon-capture projects are limited due to high costs, the global new vehicle market now includes approximately 13% electric vehicles, and there has been rapid expansion in solar and wind deployments.

Exxon’s Shift Towards Climate Solutions

Woods’ participation at the COP28 climate summit marked the first time a CEO of Exxon has attended such an event. This reflects the growing effort among oil and gas companies worldwide to position themselves as part of the solution to global warming.

Debate Over Fossil Fuels and Carbon Capture

The role of carbon capture technology and fossil fuels is a central issue at the conference. The IEA’s report on the fossil fuel industry’s “moment of truth” has prompted discussions on the industry’s future direction.

Exxon’s Investment in Low-Carbon Business

Exxon has announced a $17 billion investment in its low carbon business, focusing on carbon capture. The company argues that greenhouse gas emissions, rather than fossil fuels themselves, are the primary cause of climate change.

Carbon Capture Initiatives

Exxon’s low carbon strategy includes a $4.9 billion acquisition of Denbury and its carbon dioxide pipeline network, aiming to bury carbon in offshore blocks in the Gulf of Mexico. The company has secured contracts for carbon reduction services, covering approximately 5 million tons of carbon dioxide per year.

Future of Carbon Capture Technology

Woods declined to provide specific estimates for the future demand for oil and gas but emphasized the importance of these energy sources through 2050. He highlighted the potential profitability of carbon capture initiatives, leveraging U.S. subsidies to make investments financially viable.

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