Exxon Mobil CEO Fires Back: In a bold rebuttal to the International Energy Agency’s (IEA) skepticism about the effectiveness of large-scale carbon capture efforts, Exxon Mobil’s CEO, Darren Woods, stood firm, likening the criticism to the initial doubts surrounding electric vehicles (EVs) and solar energy.
Addressing the audience at the COP28 climate summit in Dubai, Woods dismissed the idea that existing solutions could adequately address the climate crisis. “There is no solution set out there today that is at the scale to solve the problem,” he asserted in a conversation with Reuters, underscoring that such skepticism could be extended to various eco-friendly initiatives, including carbon capture, electric vehicles, wind, and solar power.
Woods, representing Exxon Mobil, a fossil fuel behemoth, made history as the inaugural CEO from the industry attending a U.N.-sponsored climate summit. The move aligns with a broader industry trend, as oil and gas companies globally attempt to rebrand themselves as contributors to climate solutions rather than perpetuators of the problem.
At the heart of discussions at COP28 is the ongoing debate about the future role of carbon capture technology and fossil fuels. The IEA‘s pre-summit report characterized the fossil fuel industry’s stance on carbon capture as an “illusion.” The report challenged the notion that carbon capture could be the panacea to offset ongoing emissions from continued fossil fuel drilling.
Despite this mistrust, Exxon Mobil has promised $17 billion in its low-carbon business, including carbon capture programs. Woods believes greenhouse gas emissions, not fossil fuels, cause climate change. In an energy market undergoing a major shift, Exxon’s CEO believes oil and gas will remain crucial through 2050. He did not predict future demand.
Exxon’s low-carbon strategy includes a strategic acquisition announced in July—$4.9 billion for Denbury, a company with a 1,300-mile carbon dioxide pipeline network. This network will be integrated with Exxon’s plans to bury carbon in offshore blocks in the Gulf of Mexico.
Facing criticism head-on, Woods emphasized Exxon’s success in securing contracts with major industrial players for carbon reduction services, covering around 5 million tons of carbon dioxide annually. With global CO2 emissions currently at about 37 billion tons per year from energy and industry, Exxon’s efforts, supported by U.S. subsidies, aim to accelerate the transition to a lower-carbon future.
As Woods steers Exxon through the complexities of environmental challenges, profitability from these investments is projected to materialize in the coming years, with government subsidies acting as a crucial catalyst for their economic viability.