Reduce carbon, not fossil fuels: Exxon, Oxy CEOs

  • Market: Crude oil, Natural gas
  • 02/03/21

Reducing carbon emissions from fossil fuels, not the actual use of fossil fuels, offers the best way to combat climate change, the leaders of two of the largest US oil and gas producers said today.

ExxonMobil chief executive Darren Woods and Occidental Petroleum chief executive Vicky Hollub both stressed on separate panels during CERAWeek by IHS Markit that the world still needs oil and gas. So instead of attacking fossil fuels, they both argued, governments can mitigate global warming by helping the industry to develop carbon capture and storage technologies and strengthen markets where polluters buy and sell the rights to emit carbon.

"Let's focus on what the issue is," Woods said. "It's emissions."

President Joe Biden's decisions to temporarily freeze drilling in federal lands and waters and kill the Keystone XL pipeline have unnerved oil and gas producers. The government is also considering a tax on imported goods manufactured in countries that do not tax carbon.

In addition, ExxonMobil, which hosts its annual investors presentations tomorrow, has been under pressure by activist firm Engine No. 1 and the California state teachers pension fund to change its practices.

Although ExxonMobil recently announced a new business unit called Low Carbon Solutions, Engine No. 1 said the US major needs to simultaneously invest in clean energy projects and completely offset carbon emissions over the next 30 years like other producers have promised to do.

Woods told CERAWeek that ExxonMobil sees promise in hydrogen, but that energy source is still far from ready. But when it comes to carbon capture, he sees a number of factors coming together that makes the technology a realistic option: government support, better economics to scale, development of markets to price carbon, and venture capital firm investments.

ExxonMobil "can leverage those converging forces," he said.

Occidental is currently building what will be the world's largest carbon capture and storage plant in the Permian basin. The independent hopes to complete the construction of the plant, designed to remove and store 1mn metric tons/yr of CO2, by 2024.

Hollub said Occidental's carbon business, which also includes carbon capture and enhanced oil recovery, is getting close to operating as a self-sustaining, profitable business.

"We should not be talking about eliminating fossil fuels," she said. "We should be talking about eliminating emissions."


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Enagas LNG bunkering sales at record high in 2023

Enagas LNG bunkering sales at record high in 2023

London, 30 May (Argus) — Spanish system operator Enagas' supplies of LNG as a marine bunkering fuel from its terminals in Spain and LNG bunkering vessels (LNGBVs) rose to a record high last year, as more capacity and stronger demand boosted throughput. Enagas supplied about 1.4TWh of LNG as a bunkering fuel in 2023, much more than the 400GWh supplied in 2022 and 300GWh in 2021, according to the firm. Enagas has expanded its LNG bunkering capacity in recent years, while the cost of LNG as a marine fuel has held much lower than competing alternatives such as marine gas oil (MGO) over the past year, supporting demand for LNG bunkering operations. The firm fully owns three LNG import terminals in Spain that offer LNG bunkering services — the Barcelona, Huelva and the Cartagena facilities. Barcelona offers pipe-to-ship (PTS) and ship-to-ship (STS) services, Huelva offers STS services and will soon offer PTS services, while Cartagena offers PTS operations, while Enagas plans to add STS services at the port too, the firm said. Enagas subsidiary Scale Gas co-owns two LNGBVs — the 5,000m³ Haugesund Knutsen in Barcelona with Norwegian firm Knutsen, and the 12,000m³ Levante LNG in Huelva, alongside UK supplier Peninsula. Most of the LNG bunkering operations in Spain are carried out in Barcelona, where bunkering volumes similarly rose to an all-time high last year, according to the port authority. The increase to 143,000 m³ of LNG as a bunker fuel across 199 deliveries last year, more than double the previous record posted in 2021 of 65,051m³, was linked largely to the commissioning of the Haugesund Knutsen in 2023. Enagas partially owns other assets that can offer truck-to-ship operations at the El Musel import terminal and the Sagunto and Bilbao LNG terminals. Bilbao can also provide PTS operations. Spain eyes growth Spain aims to build on its presence in the LNG bunkering market, with several planned LNG bunkering projects adding to its already-large LNG import and storage capacity. Utility Endesa recently advanced plans that were initially announced in 2021 to build a small LNG terminal with 5,000m³ of LNG storage capacity in the Spanish exclave of Melilla in north Africa. Endesa earlier this month requested permits for the project from the local government. Endesa also has plans for an LNG bunkering project in the port of Algeciras, with an LNG plant comprising four tanks with a combined capacity of 4,000m³. The firm had intended to start offering services earlier this year, but this appears to have been delayed. Scale Gas also aims to launch an LNGBV in the Canary Islands that it is building at present and aims to start operating in 2026. This LNGBV will also offer bio-LNG bunkering operations. By Ellie Holbrook Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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ExxonMobil's Nigeria sale inches forwards


30/05/24
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30/05/24

ExxonMobil's Nigeria sale inches forwards

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E3 seeks IAEA action against Iranian nuclear activity


30/05/24
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30/05/24

E3 seeks IAEA action against Iranian nuclear activity

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Germany to stop gas storage levy on transit from 2025


30/05/24
News
30/05/24

Germany to stop gas storage levy on transit from 2025

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Jera sells partial stake in Freeport LNG to Japex


30/05/24
News
30/05/24

Jera sells partial stake in Freeport LNG to Japex

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