How ExxonMobil Is Banking On Biofuels

Summary

ExxonMobil, a global energy giant with a rich history, faces scrutiny for its past actions on climate change. The company, born from Standard Oil, is now under pressure to transition to a low-carbon future. It has set ambitious goals for net-zero emissions by 2050 and is investing in carbon capture and biofuels. However, critics question the sincerity of these efforts, dubbing them as 'greenwashing.' The company's future hinges on balancing its traditional oil business with emerging sustainable technologies.

Takeaways

• 🌏 ExxonMobil is a global organization with a significant presence on six continents and a rich history tied to the American oil industry.
• 🏭 The company's roots trace back to John D. Rockefeller's Standard Oil, which was once the largest oil refiner and a monopolistic force in the industry.
• 🚗 The advent of the automobile industry created a massive market for gasoline, which transformed the business landscape for oil companies like Exxon.
• 📉 Exxon faced a significant crisis with the Exxon Valdez oil spill, which led to increased scrutiny and a push for better environmental management.
• 🔄 Under Lee R. Raymond's leadership, Exxon underwent a major merger with Mobil in 1998, forming ExxonMobil and becoming the world's largest oil company.
• 🌡️ ExxonMobil's past has been under scrutiny, especially regarding its stance on climate change and whether it misled the public about the impact of fossil fuels.
• 🌱 The company has been investing in low carbon solutions such as carbon capture and storage (CCS) and biofuels to reduce its carbon footprint.
• 🛑 Shareholder pressure has led to changes in ExxonMobil's board and a renewed focus on addressing climate change and transitioning to a lower-carbon future.
• 📉 The company has set an ambitious goal to achieve net-zero emissions from its global operations by 2050, aligning with global climate goals.
• 💵 ExxonMobil emphasizes the need for a price on carbon to make carbon capture and other low-carbon technologies economically viable.
• 🔮 The future of ExxonMobil is uncertain as it navigates the energy transition, balancing the need for immediate profits with long-term sustainability.

Q & A

How many employees does ExxonMobil have worldwide?

ExxonMobil has 63,000 employees worldwide.

Who is considered to have written a seminal book on ExxonMobil?

Pulitzer Prize-winning journalist Steve Coll is known for writing a seminal book on ExxonMobil.

What was the significance of John D. Rockefeller's founding of Standard Oil?

John D. Rockefeller's founding of Standard Oil in the late 19th century led to the creation of one of the biggest fortunes in American history and controlled 90% of domestic oil refining by the 1880s.

What was the primary use of oil at the time of Standard Oil's early dominance?

At the time of Standard Oil's early dominance, kerosene used for lighting was the primary moneymaker, with gasoline being a virtually useless byproduct that was often thrown away.

How did the advent of the automobile change the oil industry?

The arrival of the automobile created a market for gasoline, which had previously been a useless byproduct of oil refining.

What was the outcome of the Supreme Court's ruling on Standard Oil?

The Supreme Court ruled that Standard Oil was a monopoly and ordered its breakup into 34 separate companies.

What was the name of the fuel blend created by Standard Oil of New Jersey in 1926?

In 1926, Standard Oil of New Jersey created a new blend of fuel called Esso.

What environmental disaster is synonymous with Exxon?

The Exxon Valdez oil spill is synonymous with Exxon and is considered the worst oil spill in North American history.

Who was appointed as chairman and CEO of Exxon after the Exxon Valdez crisis?

Lee R. Raymond, a chemical engineer by training, was appointed chairman and CEO of Exxon after the Exxon Valdez crisis in 1993.

What significant merger did Lee R. Raymond engineer in 1998?

In 1998, Lee R. Raymond engineered a merger with Mobil, creating ExxonMobil, the largest oil company in the world at the time.

What is the current controversy surrounding ExxonMobil's past actions on climate change?

ExxonMobil's past actions on climate change have come under scrutiny, with accusations that the company misled the public about the impact of fossil fuels on global warming, particularly during Lee Raymond's tenure as CEO.

What is the significance of the shareholder pressure on ExxonMobil in 2021?

In 2021, shareholder pressure led to the election of three new board members who were not the company's preferred candidates, indicating a shift towards more sustainable and environmentally conscious business practices.

What is ExxonMobil's ambition regarding its global operations by 2050?

ExxonMobil has announced an ambition to make its global operations net zero by 2050, capturing or removing as much greenhouse gases as it emits.

What is the Houston Hub project and how does it fit into ExxonMobil's strategy?

The Houston Hub is a proposed carbon capture and sequestration network around ExxonMobil's Baytown complex, aimed at capturing CO2 emissions and sequestering them deep underground, which is part of the company's strategy to reduce its carbon footprint.

What is the estimated cost of building CO2 pipelines for the Houston Hub project?

The estimated cost of building CO2 pipelines for the Houston Hub project is around $300,000 per inch mile, which can reach millions to tens of millions of dollars per mile.

What is ExxonMobil's stance on the need for a price on carbon?

ExxonMobil states that a price on carbon of at least $100 a tonne is needed to make projects like the Houston Hub economically viable.

What is the potential of biofuels in ExxonMobil's energy transition strategy?

Biofuels are seen as a potential carbon-neutral fuel in ExxonMobil's energy transition strategy, with the company researching and developing materials that could be turned into biofuels.

How does ExxonMobil respond to critics who claim their efforts are nothing more than greenwashing?

ExxonMobil acknowledges the need for a transition but emphasizes the delicate balance required to not leave people behind as the global economy is still largely powered by fossil fuels.