ExxonMobil to Lead in Low-Carbon Investment Among Oil Majors

Published 5 hours agoXOM

ExxonMobil to Lead in Low-Carbon Investment Among Oil Majors

ExxonMobil is making a bold move by increasing its investment in low-carbon technology to $30 billion by 2030. This is a significant jump from its previous commitment of $3 billion made in 2021. The funds will be directed towards carbon capture, biofuels, hydrogen, and even lithium extraction, marking a major shift in Exxon's approach to clean energy projects as reported by the Financial Times.

In contrast, European oil companies like Shell and BP are reducing their budgets for low-carbon initiatives due to concerns about profitability. BP now spends only $1.75 billion per year on low-carbon projects, and Shell's low-carbon budget sits at $3.5 billion. Despite these reductions, Exxon is still trailing behind TotalEnergies, which dedicates 29% of its capital expenditure to such projects compared to Exxon's 17%.

ExxonMobil's recent strategic pivot seems to be driven by business opportunities within the energy transition, according to analysts highlighted in the Financial Times. While some see this as a competitive move amidst its old skepticism towards clean energy, Exxon continues to heavily depend on fossil fuels, indicating a careful balance in navigating the evolving energy landscape.

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