ExxonMobil, Sustainability, and Renewable Energy
When it comes to thinking big, few in the industry reach the heights of ExxonMobil. That’s certainly true of ExxonMobil’s sustainability goals. Announced in January of 2022, the company outlined plans to drastically reduce carbon emissions caused by its products and accelerate its existing diversification plans.
How Big Is ExxonMobil?
Big challenges are simply big opportunities. As of January 2021, the company is one of the 15 largest in the world by revenue, with an estimated annual revenue of $181.5 billion. Its average oil and natural gas production can exceed five million barrels per day. Upstream business has been volatile, with fluctuations caused by demand and supply spikes over the past decade. However, its downstream chemical prime product sales have increased since 2019.
Dividing its business into three categories, the company looks like this:
Upstream oil and oil equivalents (natural gas, natural gas liquids) – 4 million barrels per day.
Oil Refining and Supply
Downstream petroleum products (asphalt, diesel, fuel oil, lubricants) – 5.5 million barrels per day.
Manufacturing operations (agriculture, health care and medical, packaging, etc.) – 26.5 million tons of product per year
ExxonMobil employs more than 50,000 people around the world, making it a vital part of many communities and a source of economic stability.
ExxonMobil Sustainability Report: An Environmental Scorecard
The sheer size of ExxonMobil’s operations and reach make it a company capable of having a massive impact on the world’s current climate crisis.
To offer transparency and a plan to improve, the company released its 2022 Sustainability Report, a detailed look at where the company is now in its diversification efforts as well as a roadmap to support renewable energy in the future.
Net-Zero Emissions by 2050
The most notable goal detailed in the Report is the company’s aggressive drive toward carbon neutrality by mid-century. According to the plan, its Permian Basin Operations will be net-zero by 2030 using a combination of lower-emission solutions, carbon capture, carbon storage, biofuels, and hydrogen.
Meeting Growing Energy Demands
The world is racing to reduce its carbon footprint while developing regions around the world strive for lifestyles that rely on energy. For example, global transportation energy demand is set to increase by 20% due in large part to commercial delivery needs driven by online sales between buyers and sellers connected by the internet and an expanding network of shipping infrastructure.
As more homes around the world come to rely on electricity to power appliances and transportation, much of the world has a growing appetite for energy. The industrial sector makes up 50% of the world’s energy end-use and more than half of its emissions. Energy demand in developed countries is expected to rise 15% by 2050 compared to 2019 levels.
Does ExxonMobil Invest in Renewable Energy?
By continuing its existing commitments and pursuing more opportunities, ExxonMobil plans to invest more than $15 billion to lower its emissions by 2027. These investments focus on making reductions associated with existing projects and operations, as well as new technologies.
That current investment has put ExxonMobil ahead of schedule, with estimated emissions down 15-20% from their 2016 levels, a goal accomplished four years faster than anticipated.
Sustainability in Fuels, Lubricants, and Chemicals
With global demand for chemicals growing, production integration will play an important role in reducing emissions at the point of production. More than 75% of ExxonMobil’s manufacturing facilities are integrated plants that allow for efficient changes in production to meet the dynamic needs of the consumer market. These facilities can be quickly repurposed from chemical manufacture to creating low-emission lubricants without making substantial supply chain adjustments or changes in how it connects with distributors like Tilley Distribution.
A Future of Sustainability in Chemicals and Lubricants
At Tilley Distribution, we work with some of the most innovative and forward-thinking suppliers in the industry. We are confident that the effort ExxonMobil is investing in sustainable development and practices will have the intended positive impact and push competitors to do the same. Learn more about the future of our industry. Contact a Tilley Distribution representative today and let’s start a conversation.