According to Darren Woods, chairman and CEO of ExxonMobil, the oil and gas industry is united in facing the "vitally important challenges" of meeting the world's energy needs and addressing climate change.
Darren Woods, ExxonMobil
Darren Woods, CEO, ExxonMobil
"Our industry has a very long history of reliably supplying the energy and products the world depends on, meeting basic human needs, enabling mobility and providing the materials necessary for essential products that we rely on every day," Woods said. "This became even more evident during the pandemic, throughout the economic recovery and now during these very difficult geopolitical times."
"The world is watching," Woods said, referring to Russia's escalating war in Ukraine. "The impacts are being felt around the world and in our industry. Our industry has an important role to play in keeping markets supplied; helping to keep the lights on and tanks full; and keeping hospitals, schools and businesses running – meeting the essential needs of everyday living."
Speaking at CERAWeek by S&P Global, held recently in Houston, Woods noted that the events in Europe reinforce the importance of developing diverse sources of energy and the industry's critical role in that development. He also pointed to how the industry is fulfilling this role in the Permian Basin.
"Technology breakthroughs have helped unlock vast new sources of oil and natural gas from shale, revitalizing our U.S. industry," he said. "Crude oil and LNG exports from the Permian Basin and other parts of the country have diversified supplies, stabilized markets and strengthened energy security in the U.S. and around the world."
According to Woods, technology applied to the Permian Basin and elsewhere is a game changer for meeting the world's growing needs.
"Our industry's technology will also be a game changer to meet the other important challenge we face: greenhouse gas emissions and supporting the transition to a net-zero future," he said. "I know many [in our industry] are advancing this objective, and so are we."
ExxonMobil, he said, is advancing this objective by boosting natural gas production and aggressively reducing emissions in the Permian Basin.
"We're working to reach net-zero Scope 1 and 2 emissions [there] by the end of the decade, which would be an industry first," he said. "We're well on our way, cutting our methane emissions by nearly half since we started a few years ago to enhance leak detection and repair technologies and improve facility design."
Technological advances and cooperation among companies are also key to reaching net-zero, Woods emphasized.
"IEA has stated that the current solutions set to achieve the world's climate goals are insufficient," he said. "They will not get us to net-zero. Alternative energy solutions like wind and solar play an increasing role, but more innovation is needed."
In response, ExxonMobil launched its low-carbon solutions business to "develop and employ critical technologies at scale – technologies like carbon-capture storage, hydrogen and biofuels," he said.
While the oil and gas industry as a whole is willing and able to help address the challenges of climate change, governments must also fulfill their role, Woods stated.
"Predictable, stable and cost-effective policies can spur more innovation and help develop markets for lower-emission solutions," he said.
ExxonMobil is leading an industry effort in the Houston area that will reduce emissions "at a scale not seen before: 100 million tons per year of carbon dioxide by 2040," Woods said.
"This opportunity in Houston will drive significant reductions and a much lower cost per ton of carbon dioxide removed from some of today's existing policies," he said. "Fourteen companies are working together to make this a reality and provide a concrete proposal for the U.S. government to consider in implementing policy."
