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1、Executive Summary2024 Advancing Climate Solutions Published January 8,2024|2024 Advancing Climate Solutions|Executive Summary22050 net-zero ambitionWith advancements in technology and clear and consistent government policies that support needed investments and the development of market-driven mechan
2、isms,we aim to achieve net-zero Scope 1 and 2 greenhouse gas emissions in our operated assets by 2050.ExxonMobils and societys emissions-100%-80%-60%-40%-20%0%0200020016ExxonMobil2030 plan3ExxonMobilactual2Society1Advancing Climate Solutions Executive SummaryGetting the planet
3、on a path to net zero requires unprecedented innovation and collaboration at immense scale.The ongoing societal effort is critical but must avoid economic hardships and market disruptions that result from energy and product shortages.Solving this challenge is not an“either/or”proposition.Its an“and”
4、equation.One that requires an increase in energy supply and reduction in greenhouse gas emissions improved energy security and thoughtful progress in the energy transition.Given the skills and capabilities required,theres no question that the energy industry plays a critical role on both sides of th
5、is equation.ExxonMobil is doing our part.Since 2016,weve significantly reduced our Scope 1 and 2 operated emissions.And weve got plans to do more.|2024 Advancing Climate Solutions|Executive Summary3People Technology Scale Integration FunctionalexcellenceCorpus Christi Chemical Complex2050 net-zero a
6、mbition(contd)Our net-zero ambition is backed by a comprehensive approach centered on detailed emission-reduction roadmaps.We completed these roadmaps in 2022 and continue to update them to reflect technology and policy,and to account for the many potential pathways,and the pace of the energy transi
7、tion.We are using this approach in our Permian Basin unconventional operations,where we are on track to achieve our industry-leading plans to reach net-zero Scope 1 and 2 emissions by 2030.Beyond reducing emissions in our own operations,we see the opportunity to use our core capabilities to help oth
8、er essential industries and customers lower their emissions.This is an immense opportunity with an addressable Competitive advantagesThe same competitive advantages that have underpinned the success of our traditional businesses for more than 140 years are the foundation of this world-scale Low Carb
9、on Solutions business.market potentially measured in the trillions of dollars by 2050.Thats why we established ExxonMobils Low Carbon Solutions business.Were working to profitably grow a leading position in these new emission-reduction markets,with a focus on the global economys hard-to-decarbonize
10、sectors like heavy industry,power generation,and commercial transportation.These are critical sectors where cost-effective solutions are lacking and where we can make a unique,significant,and lasting contribution.|2024 Advancing Climate Solutions|Executive Summary4Corpus Christi Chemical ComplexThe
11、challenge is enormous.To tackle it,the world needs industrial-scale solutions.We need them deployed globally and at a much lower cost than today.That will require continued advances in technology,and clear and consistent government policies that catalyze investments in the near term.Additionally,the
12、 world will need to establish a new industry a carbon-reduction industry and a market that pays for the cost of emission reductions.The skills and capabilities required to address these complicated challenges play to ExxonMobils strengths and align with our strategic priorities:Leading performance I
13、ndustry leader in operating and financial performance.Essential partner Value through win-win solutions for our customers,partners,and broader stakeholders.Advantaged portfolio Portfolio of assets and products outperform competition and grow value in a lower-emission future.Innovative solutions New
14、products,technologies,and approaches to accelerate large-scale deployment of solutions essential to modern life and lower emissions.Meaningful development Diverse and engaged organization with unrivaled opportunities for personal and professional growth doing impactful work to meet societys needs.4|
15、2024 Advancing Climate Solutions|Executive Summary5About this reportThis years edition of ExxonMobils Advancing Climate Solutions Report describes our resolve to drive meaningful change,the results were already delivering,and the resiliency of our plans under a wide range of future scenarios.This Ex
16、ecutive Summary highlights the significant progress we continue to make toward:Achieving our 2030 emission-reduction plans and our 2050 net-zero ambition.Reducing methane emissions.Building our Low Carbon Solutions business.We encourage you to visit our website to explore greater detail on these top
17、ics and others related to our actions to address the risks of climate change across our businesses.Making progress Over our history and across the globe,we have built industries where none existed before.We see this today with our developments in Papua New Guinea and Guyana.At our core,were a techno
18、logy company that uses our science and engineering capabilities to bring value-added solutions to partners and customers.We do this in a variety of ways using unique advantages in scaling technology and delivering complex,large-scale projects safely,reliably,and at industry-advantaged cost.Were deve
19、loping molecules that cost-effectively meet the ever-evolving needs of society.Were unlocking critical oil and natural gas resources trapped in geologic formations around the world.And were capturing and safely storing emissions for hard-to-decarbonize industrial processes.Of course,our past success
20、es and current strengths stem from the commitment,experience,and capabilities of our people.Their skills,tenacity,and resiliency are the bedrock on which our company is built.If you were to make a list of the biggest challenges facing humankind right now,addressing poverty and climate change would b
21、e at the top.At the same time,if you were to make a list of the companies that have a credible chance of improving access to affordable energy and other products that are critical to improved living standards and reducing emissions,ExxonMobil would also be at the top.The strategy weve developed,the
22、organization weve built,and the businesses were focused on position us to grow and create value for many decades to come,regardless of the pace of the transition.At our core,were a technology company that uses our science and engineering capabilities to bring value-added solutions to partners and cu
23、stomers.Guyana Prosperity FPSO|2024 Advancing Climate Solutions|Executive Summary6|2024 Advancing Climate Solutions|Executive SummaryMaking real progress toward solving the and equationExxonMobil is delivering both sides of the“and”equation meeting societys needs for energy and essential products an
24、d reducing emissions.We achieved record production from our projects in the Permian Basin and Guyana in the second quarter of 2023,up more than 20%from a year earlier.6 We added 250,000 barrels per day of refining capacity in early 2023 in Beaumont,Texas.The extra supply helps reduce rising price pr
25、essures,easing the impact on consumers and businesses.It was the largest refinery expansion in the U.S.since 2012.7 We started up a chemical expansion project at Baytown,Texas,that has capacity to deliver 750,000 tons per year of products that are used by manufacturers to make stronger and lighter a
26、uto parts,construction materials,packaging,and more.8 Weve cut operated methane emissions in half since 2016,eliminated all of our high-bleed pneumatic devices in U.S.operated unconventional production,and established our Center for Operations and Methane Emissions Tracking(COMET).When fully deploye
27、d,COMET is expected to provide around-the-clock remote monitoring capabilities in the region.We eliminated routine flaring in our Permian Basin operated assets,in line with the World Banks Zero Routine Flaring Initiative,9 which is a key part of our 2030 goal of achieving net-zero Scope 1 and 2 gree
28、nhouse gas emissions from our unconventional operated assets in the Permian.We electrified our drilling fleet in the Permian Basin and deployed our first electric fracturing units to further reduce emissions intensity.10 We acquired Denbury Inc.,which expands our Low Carbon Solutions business opport
29、unities by leveraging the largest CO pipeline network in the United States.11 We signed landmark CO offtake agreements with a major fertilizer producer,a steel manufacturer,and an industrial gas company to capture,transport,and store up to 5 million metric tons of CO per year.Thats equivalent to rep
30、lacing approximately 2 million gasoline-powered cars with electric vehicles,12 which is roughly equal to the total number of EVs on U.S.roads today.13,14,15 We began drilling for lithium in southwestern Arkansas a process that holds great promise to address the growing needs of the EV battery market
31、s.&Increasing energy and product supplyReducing greenhouse gas emissions5|2024 Advancing Climate Solutions|Executive Summary72030 greenhouse gas emission-reduction plans16,17Since 2016,weve reduced our operated greenhouse gas emissions intensity by more than 10%,and our 2030 plans are expected to dr
32、ive further reductions.Corporate-wide greenhouse gas intensity 2030 plan:20-30%Corporate-wide methane intensity2030 plan:70-80%Upstream greenhouse gas intensity2030 plan:40-50%Corporate-wide flaring intensity2030 plan:60-70%Our plans to reduce emissions intensity through 2030 include:Achieving net-z
33、ero Scope 1 and 2 greenhouse gas emissions in our Permian Basin unconventional operated assets.Deploying carbon capture and storage,hydrogen,and lower-emission fuels in our operations.Further reducing methane emissions at operated assets in alignment with the Global Methane Pledge and with Aiming fo
34、r Zero Methane Emissions,developed by the Oil and Gas Climate Initiative.Further reducing flaring in upstream operations to meet the World Bank Zero Routine Flaring Initiative.Integrating lower greenhouse gas energy sources into our facilities through long-term power purchase agreements and electrif
35、ication.Improving energy efficiency in our businesses by evolving operational and maintenance processes.Substituting low-carbon hydrogen for natural gas to reduce emissions from furnaces.Deploying innovative solutions to further reduce greenhouse gas emissions with future advancements in technology
36、and supportive policies.Did you know?ExxonMobil is a leading purchaser of renewable power.18view web module|2024 Advancing Climate Solutions|Executive Summary810%reduction in corporate-wide greenhouse gas(GHG)emissions intensity19Corporate-wide operated GHG emissions intensity(T CO2e/100 T)2022 year
37、-end actual:Versus 2016 levels.Applies to Scope 1 and 2 GHG emissions from operated assets.00222030 plan0.000.020.040.060.08201620222030 plan00222030 planNDCs0522030 planCorporate-wide operated methane emissions intensity(T CH4/100 T)2022 year-end actual:Upstream ope
38、rated GHG emissions intensity(T CO2e/100 T)2022 year-end actual:Corporate-wide operated hydrocarbon flaring intensity(m3/T)2022 year-end actual:Progress through year-end 2022 Methane and flaring intensity reductions make up the bulk of our improvement.Our actions to reduce emissions intensity signif
39、icantly offset our growth.Divestments did not meaningfully contribute to our intensity reductions.Other includes power-purchase agreements,energy attribute certificates,and other changes.|2024 Advancing Climate Solutions|Executive Summary9Approach to reducing emissions in business planning We incorp
40、orate actions needed to advance our 2030 emission-reduction objectives into our medium-term business plans,which we update annually.The reference case for planning beyond 2030,including impairment assessments and future planned development activities,is based on our Global Outlook.The Outlook consid
41、ers the existing global policy environment,announced policy changes,technology advances,consumer preferences,and the historical precedents for each of these areas.It does not attempt to project the degree of future policy,technology advancement,or deployment necessary for the world or ExxonMobil to
42、meet net zero by 2050.As additional policies are implemented and technology advances beyond our estimates,we incorporate those changes into the Outlook and update our business plans accordingly as part of our annual planning cycle.Potential GHG abatement options for ExxonMobil operated assets suppor
43、ting 2030 GHG emission-reduction plans20T CO2e/100 T2016 intensity2022intensityEnergy efficiencyFlare&methane minimizationOperations/reconfigurationsElectrification/PPAs/RECs/high-quality offsetsCCS,hydrogen,and/or future advancements2030 intensityPositioning for a lower-emission futureWe have evolv
44、ed our operating model,enabling efficiencies that better leverage the scale of an increasingly integrated company.At the same time,we have centralized many of the skills and capabilities required by our business,allowing us to improve allocation of critical resources;drive continuous improvement,inc
45、luding detection and measurement of emissions;and grow value.This serves us well in a variety of future scenarios,irrespective of the pace of the energy transition.Higher-cost options reflect the need for additional policy and continued advocacy.Abatement CostAbatement costElectrificationOperations/
46、reconfigurationsEnergy efficiencyFlare minimizationMethane minimizationCCS,hydrogen,and/or future advancementsElectrification/PPAs/RECs/high-quality offsetsCO2e mitigationRoadmapAbatement curve|2024 Advancing Climate Solutions|Executive Summary10Reducing methane emissions Our plans to reduce methane
47、 intensity across our operated assets remain on track.These include reductions versus 2016 levels of 70%-80%in methane intensity and 60%-70%in flaring intensity by 2030.To get there,were developing and deploying enhanced technologies from satellites to on-the-ground sensors for rapid detection and m
48、itigation starting with a focus on our highest methane emission sources.At the same time,were continuing to develop and advocate for strong measurement and reporting frameworks to provide consistent,comparable,and most importantly,useful data to inform our methane mitigation efforts worldwide.In 202
49、3,we took additional steps to further collaboration among government and industry partners,including deciding to join the United Nations Oil and Gas Methane Partnership 2.0.Our Permian operations make up about 16%of our total methane emissions.By rapidly advancing our plans in the basin,were reducin
50、g emissions and developing solutions that we can refine and deploy in other parts of the world.As of year-end 2022,we have eliminated routine flaring in our Permian operations.With full deployment of our near-continuous monitoring program in the Permian by 2025,we expect our Center for Operations an
51、d Methane Emissions Tracking(COMET)to provide real-time monitoring of 700 sites across 1.8 million acres.Our progress in the Permian Basin guides our projects elsewhere.The pneumatic devices in our industry are,as a category,the largest source of routine methane emissions in our processes.Thats why
52、in 2020,we completed the elimination of high-bleed pneumatic devices across our U.S.unconventional production,and were working to eliminate the rest by 2025.Through actions like these,were eliminating potential sources of methane emissions while advancing our ability to detect and quantify others.We
53、 know we cant go it alone.Collaboration will be vital as we implement solutions to support societys net-zero future.By working with a wide range of universities,academic consortiums,environmental groups,and more,were advancing leading-edge research and piloting new technologies to help the industry
54、and our company measure,reduce,and report methane emissions.view web moduleAs of year-end 2022,we have eliminated routine flaring in our Permian operations.Were developing and deploying enhanced technologies from satellites to on-the-ground sensors for rapid detection and mitigation.|2024 Advancing
55、Climate Solutions|Executive Summary11Sustaining our commitment to R&D We determine which research projects to advance based on factors including advantage versus alternatives,ability to scale,alignment with core capabilities and key partners,and probability of commercial success.We employ thousands
56、of scientists and engineers,including more than 1,500 Ph.D.s.Their work drives our research in new materials,novel low-energy processes,and improved means of CO storage.Our scientists have written more than 1,000 peer-reviewed publications and received more than 10,000 patents over the past decade.I
57、n addition,we collaborate with more than 80 universities around the world,four energy centers,and several U.S.national laboratories.These collaborations have increased knowledge in key areas important to the energy transition,including fugitive methane emissions detection and modeling;optimization t
58、echniques to understand CO storage;electrification of processes;lower-emission fuels;and energy systems models.1,000peer-reviewed publications written by our scientists1,500Ph.D.s employed10,000patents over the past decade80university collaborations around the world Shanghai Technology Centerview we
59、b module11|2024 Advancing Climate Solutions|Executive Summary12Investing in lower-emission solutions Were pursuing more than$20 billion in lower-emission investments from 2022 through 2027,in addition to the approximately$5 billion Denbury acquisition.About 50%of our lower-emission investments are t
60、argeted at reducing emissions from operated assets,with the balance going toward reducing the emissions of other companies.Were focused on customers in the heavy industry,power generation,and commercial transportation sectors.These sectors provide great economic value and generate significant emissi
61、ons that arent easy to cut.Together,these sectors account for about 80%of energy-related CO emissions today.Carbon capture and storage,hydrogen,biofuels,and lithium align with our capabilities and have the potential to make a big difference in these hard-to-decarbonize sectors.Denbury view web modul
62、e12|2024 Advancing Climate Solutions|Executive Summary13Carbon capture and storage The technology exists today to capture and store CO from emission sources.Global agencies including the International Energy Agency,the U.N.Intergovernmental Panel on Climate Change,and the U.S.Department of Energy ha
63、ve concluded that permanent storage of CO in appropriately selected geological formations is a safe and secure option.21 ExxonMobil has cumulatively captured more human-made CO than any other company on the planet,and were expanding our long-term storage capacity in anticipation of market developmen
64、ts.We have three of the largest third-party contracts to capture,transport,and store CO advancing projects that will help decarbonize a fertilizer company,an industrial gases company,and a steel company.The recent acquisition of Denbury expands our capabilities in this area.It provides ExxonMobil wi
65、th the largest owned and operated network of CO pipelines in the United States,including 900 miles of pipelines near the largest industrial complexes on the Gulf Coast.Combining Denburys assets and our experience accelerates and expands our ability to help customers reduce their emissions.Ultimately
66、,we see an opportunity to create a carbon capture and storage business with the capacity to reduce emissions across the Gulf Coast by more than 100 million metric tons per year.22 This transaction will help us do that at a lower cost and faster pace.Corpus ChristiBaytownBeaumontLake CharlesPort Arth
67、urBaton RougeHoustonTXLAMSALIndustrial emissions sourcesExxonMobil industrial sitesCO storage sitesAcquired CO pipelineEnhanced oil recoveryNote:All information shown is approximate(e.g.,storage/pipeline location)and has potential to change as projects are developed and implemented.Denbury acquisiti
68、on creates strong U.S.Gulf Coast CO2 infrastructure position|2024 Advancing Climate Solutions|Executive Summary14Hydrogen We also have a long history with hydrogen,a zero-carbon energy source that can be used to reduce emissions in hard-to-decarbonize sectors including steel manufacturing,refining,a
69、nd heavy-duty trucking,among others.In Baytown,Texas,we are developing the worlds largest low-carbon hydrogen production facility.We are designing it to produce 1 billion cubic feet of hydrogen per day,using a process called“auto-thermal reforming“to separate the hydrogen and carbon atoms.We plan to
70、 use carbon capture and storage to sequester the CO emissions.More than 98%of the associated CO emissions produced by the facility 7 million metric tons per year are expected to be captured and stored.BiofuelsWe can also make a real difference with biofuels.Demand for energy-dense,lower-emission fue
71、ls is expected to grow rapidly,especially in the aviation,marine,and heavy-duty trucking industries.This growth creates opportunities to process biofuels and make drop-in replacements for todays fossil fuels.Our Product Solutions business is working to supply approximately 40,000 barrels per day of
72、lower-emission fuel by 2025,with a further goal of 200,000 barrels per day by 2030.LithiumLithium production is an exciting new business opportunity for us.Were working to apply our upstream and downstream expertise to recover and separate lithium from deep brine reservoirs.Using available technolog
73、ies,were working to produce this critical mineral more efficiently and with fewer environmental impacts than traditional hard rock mining helping to grow a U.S.-based supply for the global battery and electric vehicle markets.23 Strathcona biofuelsArkansas lithium Baytown future hydrogen plant|2024
74、Advancing Climate Solutions|Executive Summary15Advocating for sound policy As we discuss in our Global Outlook,the energy transition is underway,but it is not yet happening at the scale or on the timetable required to achieve societys net-zero ambitions.Three key drivers are needed,and all involve b
75、road collaboration among governments,companies,universities,and others.First,continued public policy support.Incentives like those in the U.S.Inflation Reduction Act provide a necessary catalyst for companies to begin scaling low-carbon solutions.Permitting reform is needed to accelerate the deploym
76、ent of these solutions,a step recognized in the European Unions Net-Zero Industry Act.Constructive policy should be stable and transparent so that market participants have sufficient time to adapt to changes.It should also recognize the need to match supply with demand to minimize price spikes that
77、destabilize economies and penalize end-users.Second,advances in technology.Only three of the more than 50 technologies needed to reach net-zero emissions by 2050 are“on track,”according to the International Energy Agency.24 An approach to technology where governments support further R&D and avoid pi
78、cking winners and losers through legislation will lead to quicker solutions that are the most cost-efficient.No single transition pathway can be reasonably predicted,given the wide range of uncertainties.Key unknowns include yet-to-be-developed government policies,market conditions,and advances in t
79、echnology that may influence the cost,pace,and potential availability of certain pathways.A full complement of technology options should be considered to provide the most economically efficient pathways.And third,the development of carbon markets.Governments cannot afford to continue paying for emis
80、sions reductions indefinitely.Ultimately,to achieve global emission-reduction goals,the world will need to move to widespread adoption of markets that reflect the cost of driving emissions down.Canadas Clean Fuels Regulations,which went into effect in 2023,offer an example of how governments can est
81、ablish market-based policies that encourage investment and enable society to accelerate emissions reductions.The regulations set progressive standards for fuels that reduce carbon intensity over time,thereby increasing the incentives for lower-intensity fuels and enabling investments like the Strath
82、cona renewable diesel plant to be operated by our affiliate Imperial Oil.Potential greenhouse gas abatement options based on ExxonMobil emissions reduction roadmaps supporting our net-zero ambitions25Without policiesWith current global policies26With current global policies and potential U.S.IRA inc
83、entives27view web module|2024 Advancing Climate Solutions|Executive Summary16Maintaining strong corporate governance Our Board of Directors oversees and provides guidance on our strategy and planning,which includes opportunities and risks related to climate change and the energy transition.Directors
84、 engage with experts from inside and outside the company and apply their individual experience and perspective in evaluating the companys capital-allocation priorities,with a focus on growing shareholder value and playing a leading role in a thoughtful energy transition.The Board,collectively and th
85、rough its Environment,Safety and Public Policy(ESPP)Committee,regularly engages with senior management on climate matters and our environmental approach and performance.This includes briefings with internal and external subject-matter experts,which can cover elements of scientific and technical rese
86、arch,public policy positions,greenhouse gas emission-reduction reporting and performance,and new technology developments.In September 2022,we held a Board meeting in the Permian Basin,where our local employees led the directors on tours of our unconventional operations.The tours provided them with c
87、ritical insights on our progress toward meeting our net-zero goal for this key part of our business.view web module|2024 Advancing Climate Solutions|Executive Summary17Ensuring resiliencyWe have continued to assess the resiliency of our business and investment portfolio against a range of future sce
88、narios that are aligned with the goals of the Paris Agreement,including the IEA Net Zero Emissions by 2050(NZE)scenario.These resiliency assessments demonstrate that our business is well positioned even in an aggressive decarbonization pathway,driven by the growth potential for chemicals,lower-emiss
89、ion fuels,carbon capture and storage,and hydrogen opportunities,which are critical to achieve societys net-zero ambition.Updates to the IEA NZE scenario since 2021 have not changed the outcome of our assessment,which highlights resiliency through investment flexibility across options that are both n
90、eeded and consistent with our core capabilities,including oil and natural gas with lower emission intensity,chemicals,carbon capture and storage,lower-emission fuels,and hydrogen.28For more than 140 years,we have been a leader in innovation,supplying the energy and products people need to live healt
91、hy,prosperous lives in the modern world.We are continuing this legacy of innovation by doing our part to provide energy security and evolving our operations in ongoing support of a net-zero future all while creating long-term shareholder value.Banyu Urip Indonesia view web module|2024 Advancing Clim
92、ate Solutions|Executive Summary18Footnotes1.1940-2022 global society CO2 emissions estimates based on data from IEA CO2 Emissions in 2022 Report;includes energy-related combustion and industrial process CO2 emissions.2.ExxonMobil Scope 1 and 2 greenhouse gas emission estimates from operated assets c
93、ompared to 2016 levels.ExxonMobils reported emissions,reductions,and avoidance performance data are based on a combination of measured and estimated emissions data using reasonable efforts and collection methods.Calculations are based on industry standards and best practices,including guidance from
94、the American Petroleum Institute(API)and Ipieca.There is uncertainty associated with the emissions,reductions,and avoidance performance data due to variation in the processes and operations,the availability of sufficient data,quality of those data,and methodology used for measurement and estimation.
95、Performance data may include rounding.Changes to the performance data may be reported as part of the companys annual publications as new or updated data and/or emission methodologies become available.We are working to continuously improve our performance and methods to detect,measure,and address gre
96、enhouse gas emissions.ExxonMobil works with industry,including API and Ipieca,to improve emission factors and methodologies,including measurements and estimates.Scope 1 and 2 emissions and intensity totals are calculated using market based method for Scope 2.3.ExxonMobil 2030 GHG emission-reduction
97、plans are intensity-based and for Scope 1 and 2 greenhouse gas emissions from operated assets compared to 2016 levels.These plans include actions that are also expected to achieve absolute reduction in corporate-wide greenhouse gas emissions by approximately 20%,compared to 2016 levels.See https:/ a
98、ddressable market based on ExxonMobil analysis of the IPCCs Sixth Assessment Report Scenarios Database hosted by IIASA for carbon capture and storage,wind,solar,hydrogen,nuclear,biofuels,geothermal,and hydropower.Secondary energy demand and prices in 2050 in the Likely Below 2C scenarios(Category C3
99、)were used,where available,to calculate an estimate of potential market revenue.Carbon capture and storage estimate includes both CCS and direct air capture and used price of carbon for pricing estimate.Biofuels estimate used liquids pricing for pricing estimate.2020 dollars.5.Based on Scope 1 and 2
100、 emissions of ExxonMobil operated assets through 2022(versus 2016).ExxonMobils reported emissions,reductions,and avoidance performance data are based on a combination of measured and estimated emissions data using reasonable efforts and collection methods.Calculations are based on industry standards
101、 and best practices,including guidance from the American Petroleum Institute(API)and Ipieca.There is uncertainty associated with the emissions,reductions,and avoidance performance data due to variation in the processes and operations,the availability of sufficient data,quality of those data,and meth
102、odology used for measurement and estimation.Performance data may include rounding.Changes to the performance data may be reported as part of the companys annual publications as new or updated data and/or emission methodologies become available.We are working to continuously improve our performance a
103、nd methods to detect,measure,and address greenhouse gas emissions.ExxonMobil works with industry,including API and Ipieca,to improve emission factors and methodologies,including measurements and estimates.Scope 1 and 2 emissions and intensity totals are calculated using market based method for Scope
104、 2.6.ExxonMobil 2Q 2023 Earnings Release(July 2023):https:/ Press Release(March 2023):https:/ Press Release(September 2023):https:/ to routine flaring herein are consistent with the World Banks Zero Routine Flaring by 2030 Initiative/Global Gas Flaring Reduction Partnerships principle of routine fla
105、ring,and excludes safety and non-routine flaring.10.ExxonMobil 2Q 2023 Earnings Prepared Remarks:https:/ Press Release(July 2023):https:/ analysis based on assumptions for U.S.in 2022,including average distance traveled,fuel efficiency,average power grid carbon intensity,electric vehicle charging ef
106、ficiency,and other factors.Gas-powered cars include light-duty vehicles(cars,light trucks and SUVs).13.ExxonMobil Press Release(October 2022):https:/ Press Release(June 2023):https:/ website:https:/ 2030 GHG emission-reduction plans are intensity-based and for Scope 1 and 2 greenhouse gas emissions
107、from operated assets compared to 2016 levels.These plans include actions that are also expected to achieve absolute reduction in corporate-wide greenhouse gas emissions by approximately 20%,compared to 2016 levels.See https:/ on Scope 1 and 2 emissions of ExxonMobil operated assets through 2022(vers
108、us 2016).ExxonMobils reported emissions,reductions,and avoidance performance data are based on a combination of measured and estimated emissions data using reasonable efforts and collection methods.Calculations are based on industry standards and best practices,including guidance from the American P
109、etroleum Institute(API)and Ipieca.There is uncertainty associated with the emissions,reductions,and avoidance performance data due to variation in the processes and operations,the availability of sufficient data,quality of those data,and methodology used for measurement and estimation.Performance da
110、ta may include rounding.Changes to the performance data may be reported as part of the companys annual publications as new or updated data and/or emission methodologies become available.We are working to continuously improve our performance and methods to detect,measure,and address greenhouse gas em
111、issions.ExxonMobil works with industry,including API and Ipieca,to improve emission factors and methodologies,including measurements and estimates.Scope 1 and 2 emissions and intensity totals are calculated using market based method for Scope 2.18.Based on ExxonMobil analysis of the BloombergNEF Glo
112、bal Corporate Renewable Power Purchase Agreement Capacity Commitments as of September 2023.19.ExxonMobils reported emissions,reductions,and avoidance performance data are based on a combination of measured and estimated emissions data using reasonable efforts and collection methods.Calculations are
113、based on industry standards and best practices,including guidance from the American Petroleum Institute(API)and Ipieca.There is uncertainty associated with the emissions,reductions,and avoidance performance data due to variation in the processes and operations,the availability of sufficient data,qua
114、lity of those data,and methodology used for measurement and estimation.Performance data may include rounding.Changes to the performance data may be reported as part of the companys annual publications as new or updated data and/or emission methodologies become available.We are working to continuousl
115、y improve our performance and methods to detect,measure,and address greenhouse gas emissions.ExxonMobil works with industry,including API and Ipieca,to improve emission factors and methodologies,including measurements and estimates.20.These charts illustrate potential greenhouse gas abatement option
116、s for Scope 1 and 2 greenhouse gas emissions.These options are not all-inclusive and are subject to change as a result of a number of factors,including abatement reduction magnitude,implementation timing,abatement cost,portfolio changes,policy developments,technology advancements,and as annual compa
117、ny plans are updated.Includes energy attribute certificates,such as renewable energy certificates(RECs)and guarantees of origin(GOOs).Analysis as of November 2023.21.NETL Technical Report and User Guide(pg.11),IPCC Carbon Dioxide Capture and Storage(pg.14),Special Issue commemorating the 10th year a
118、nniversary of the publication of the Intergovernmental Panel on Climate Change Special Report on CO2 Capture and Storage.22.Market potential for emission reduction opportunity based on ExxonMobil analysis of CO2 pipeline routes,current and potential capacity,potential emitters in the U.S.Gulf Coast
119、market,and potential infrastructure upgrades.Subject to additional investment by ExxonMobil,customer commitments,supportive policy,and permitting for carbon capture and storage projects.23.Expected smaller footprint of lithium mining and expected lower carbon and water impacts:EM analysis of externa
120、l sources and third party life-cycle analyses.1)Vulcan Energy,2022 https:/v-er.eu/app/uploads/2023/11/LCA.pdf,Minviro publication.Grant,A.,Deak,D.,&Pell,R.(2020).2)The CO2 Impact of the 2020s Battery Quality Lithium Hydroxide Supply Chain-Jade Cove Partners.https:/ gas,and water life cycle analysis
121、of lithium carbonate and lithium hydroxide monohydrate from brine and ore resources and their use in lithium ion battery cathodes and lithium ion batteries.Resources,Conservation and Recycling,174,105762.24.International Energy Agency(2023),Tracking Clean Energy Progress 2023,IEA,Paris https:/www.ie
122、a.org/reports/tracking-clean-energy-progress-2023,License:CC BY 4.0.25.Charts illustrate potential GHG abatement options for Scope 1 and 2 greenhouse gas emissions,based on current roadmaps for major operated assets and ExxonMobil analysis.These options are not all-inclusive,may not reflect investme
123、nt decisions made by the company,and are subject to change as a result of a number of factors,including abatement reduction magnitude,implementation timing,abatement cost,portfolio changes,policy developments,technology advancement,alignment with our partners and other stakeholders,and as annual com
124、pany plans are updated.26.ExxonMobils GHG emissions pricing for 2023-2030 is based on currently stated existing or anticipated policies;pricing for 2030-2050 reflects presumed regional policies for both advanced and emerging economies.27.Based on preliminary ExxonMobil analysis of U.S.IRA provisions
125、.All assumptions and interpretations of U.S.IRA incentives are subject to change.IRS has yet to publish guidance and regulations to implement the U.S.IRA 45V.28.International Energy Agency(2021),Net Zero by 2050,IEA,Paris;IEA NZE scenario per World Energy Outlook 2022,IEA,Paris;IEA Net Zero Roadmap:
126、A Global Pathway to Keep the 1.5C Goal in Reach 2023 Update,IEA,Paris.|2024 Advancing Climate Solutions|Executive SummaryForward-Looking Statement WarningCAUTIONARY STATEMENT RELEVANT TO FORWARD LOOKING INFORMATION FOR THE PURPOSE OF THE“SAFE HARBOR”PROVISIONS OF THE PRIVATE SECURITIES LITIGATION RE
127、FORM ACT OF 1995 AND OTHER IMPORTANT LEGAL DISCLAIMERSImages or statements of future ambitions,plans,goals,events,projects,projections,opportunities,or conditions in the publications,including plans to reduce,abate,avoid or enable avoidance of emissions or reduce emissions intensity,sensitivity anal
128、yses,expectations,estimates,the development of future technologies,business plans,and sustainability efforts are dependent on future market factors,such as customer demand,continued technological progress,policy support and timely rule-making or continuation of government incentives and funding,and
129、represent forward-looking statements.Similarly,emission-reduction roadmaps to drive toward net zero and similar roadmaps for emerging technologies and markets,and water management roadmaps to reduce freshwater intake and/or manage disposal,are forward-looking statements.These statements are not guar
130、antees of future corporate,market or industry performance or outcomes for society and are subject to numerous risks and uncertainties,many of which are beyond our control or are even unknown.Actual future results,including the achievement of ambitions to reach Scope 1 and 2 net zero from operated as
131、sets by 2050,to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030,to eliminate routine flaring in-line with World Bank Zero Routine Flaring,to reach near zero methane emissions from operated assets and other methane initiatives,to meet greenhouse gas emiss
132、ion reduction plans or goals,divestment and start-up plans,and associated project plans;technology advances including in the timing and outcome of projects to capture and store CO2 supply lower-emission fuels,produce hydrogen,produce lithium,obtain data on detection,measurement and quantification of
133、 emissions including reporting of that data or updates to previous estimates,and use plastic waste as feedstock for advanced recycling;progress in sustainability focus areas;and reserve or resource changes could vary depending on changes in supply and demand and other market factors affecting future
134、 prices of oil,gas,petrochemical or new market products and services;future cash flows;our ability to execute operational objectives on a timely and successful basis;policy and consumer support for emission-reduction and other advanced products and technology;changes in international treaties,laws,r
135、egulations and incentives,including those greenhouse gas emissions,plastics,carbon storage and carbon costs;evolving reporting standards for these topics and evolving measurement standards for reported data;trade patterns and the development and enforcement of local,national and regional mandates;un
136、foreseen technical or operational difficulties;the outcome of research efforts and future technology developments,including the ability to scale projects and technologies such as electrification of operations,advanced recycling,CCS,hydrogen production,or direct lithium extraction on a commercially c
137、ompetitive basis;availability of feedstocks for lower-emission fuels,hydrogen,or advanced recycling;changes in the relative energy mix across activities and geographies;the actions of competitors;changes in regional and global economic growth rates and consumer preferences;actions taken by governmen
138、ts and consumers resulting from a pandemic;changes in population growth,economic development or migration patterns;military build-ups,armed conflicts,or terrorism;and other factors discussed in this release and in Item 1A.“Risk Factors”in ExxonMobils Annual Report on Form 10-K for 2022 and subsequen
139、t Quarterly Reports on Forms 10-Q,as well as under the heading“Factors Affecting Future Results”on the Investors page of ExxonMobils website at .The Advancing Climate Solutions Report includes 2022 greenhouse gas emissions performance data and Scope 3 Category 11 estimates for full-year 2022 as of M
140、arch 1,2023.The greenhouse gas intensity and greenhouse gas emission estimates include Scope 2 market-based emissions.The Sustainability Report,the Advancing Climate Solutions Report,and corresponding Executive Summaries were issued on Jan.8,2024.The content and data referenced in these publications
141、 focus primarily on our operations from Jan.1,2022 Dec.31,2022,unless otherwise indicated.Tables on our“Metrics and data”page were updated on April 26,2024,to reflect full-year 2023 data.Information regarding some known events or activities in 2023 are also included.No party should place undue relia
142、nce on these forward-looking statements,which speak only as of the dates of these publications.All forward-looking statements are based on managements knowledge and reasonable expectations at the time of publication.We do not undertake to provide any further updates or changes to any data or forward
143、-looking statements in these publications.Neither future distribution of this material nor the continued availability of this material in archive form on our website should be deemed to constitute an update or re-affirmation of these figures or statements as of any future date.Any future update will
144、 be provided only through a public disclosure indicating that fact.See“ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS”at the end of this document for additional information on these reports and the use of non-GAAP and other financial measures.ABOUT THE ADVANCING CLIMATE SOLUTIONS A
145、ND SUSTAINABILITY REPORTS The Advancing Climate Solutions Report contains terms used by the TCFD,as well as information about how the disclosures in this report are consistent with the recommendations of the TCFD.In doing so,ExxonMobil is not obligating itself to use any terms in the way defined by
146、the TCFD or any other party,nor is it obligating itself to comply with any specific recommendation of the TCFD or to provide any specific disclosure.For example,with respect to the term“material,”individual companies are best suited to determine what information is material,under the long-standing U
147、.S.Supreme Court definition,and whether to include this information in U.S.Securities and Exchange Act filings.In addition,the ISSB is evaluating standards that provide their interpretation of TCFD which may or may not be consistent with the current TCFD recommendations.These publications have been
148、prepared at shareholders request or for their convenience and intentionally focused on unknown future events that we have been asked to consider.Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not intended to communicate any material
149、investment information under the laws of the United States or represent that these are required disclosures.These publications are not intended to imply that ExxonMobil has access to any significant non-public insights on future events that the reader could not independently research.In addition,his
150、torical,current,and forward-looking environmental and other sustainability-related statements may be based on standards for measuring progress that are still developing,internal controls and processes that continue to evolve,and assumptions that are subject to change in the future,including future l
151、aws and rulemaking.Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are for informational purposes only and are not intended as an advertisement for ExxonMobils equity,debt,businesses,products,or services and the reader is specifically not
152、ified that any investor-requested disclosure or future required disclosure is not and should not be construed as an inducement for the reader to purchase any product or services.The statements and analysis in these publications represent a good faith effort by the Company to address these investor r
153、equests despite significant unknown variables and,at times,inconsistent market data,government policy signals,and calculation,methodologies,or reporting standards.Actions needed to advance ExxonMobils 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans,
154、which are updated annually.The reference case for planning beyond 2030 is based on the Companys Global Outlook research and publication.The Global Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050.Howe
155、ver,the Global Outlook does not attempt to project the degree of required future policy and technology advancement and deployment for the world,or ExxonMobil,to meet net zero by 2050.As future policies and technology advancements emerge,they will be incorporated into the GIobal Outlook,and the Compa
156、nys business plans will be updated as appropriate.References to projects or opportunities may not reflect investment decisions made by the corporation or its affiliates.Individual projects or opportunities may advance based on a number of factors,including availability of supportive policy,permittin
157、g,technological advancement for cost-effective abatement,insights from the company planning process,and alignment with our partners and other stakeholders.Capital investment guidance in lower-emission investments is based on our corporate plan;however,actual investment levels will be subject to the
158、availability of the opportunity set,public policy support,other factors,and focused on returns.Energy demand modeling aims to replicate system dynamics of the global energy system,requiring simplifications.The reference to any scenario or any pathway for an energy transition,including any potential
159、net-zero scenario,does not imply ExxonMobil views any particular scenario as likely to occur.In addition,energy demand scenarios require assumptions on a variety of parameters.As such,the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty.For example,t
160、he IEA describes its NZE scenario as extremely challenging,requiring unprecedented innovation,unprecedented international cooperation,and sustained support and participation from consumers,with steeper reductions required each year since the scenarios initial release.Third-party scenarios discussed
161、in these reports reflect the modeling assumptions and outputs of their respective authors,not ExxonMobil,and their use or inclusion herein is not an endorsement by ExxonMobil of their underlying assumptions,likelihood,or probability.Investment decisions are made on the basis of ExxonMobils separate
162、planning process but may be secondarily tested for robustness or resiliency against different assumptions,including against various scenarios.These reports contain information from third parties.ExxonMobil makes no representation or warranty as to the third-party information.Where necessary,ExxonMob
163、il received permission to cite third-party sources,but the information and data remain under the control and direction of the third parties.ExxonMobil has also provided links in this report to third-party websites for ease of reference.ExxonMobils use of the third-party content is not an endorsement
164、 or adoption of such information.ExxonMobil reported emissions,including reductions and avoidance performance data,are based on a combination of measured and estimated data.We assess our performance to support continuous improvement throughout the organization using our Environmental Performance Ind
165、icator(EPI)process.The reporting guidelines and indicators in the Ipieca,the American Petroleum Institute(API),the International Association of Oil and Gas Producers Sustainability Reporting Guidance for the Oil and Gas Industry(4th edition,2020,revised February 2023)and key chapters of the GHG Prot
166、ocol inform the EPI process and the selection of the data reported.Emissions reported are estimates only,and performance data depends on variations in processes and operations,the availability of sufficient data,the quality of those data and methodology used for measurement and estimation.Emissions
167、data is subject to change as methods,data quality,and technology improvements occur,and changes to performance data may be updated.Emissions,reductions,abatements and enabled avoidance estimates for non-ExxonMobil operated facilities are included in the equity data and similarly may be updated as ch
168、anges in the performance data are reported.ExxonMobils plans to reduce emissions are good-faith efforts based on current relevant data and methodology,which could be changed or refined.ExxonMobil works to continuously improve its approach to identifying,measuring,and addressing emissions.ExxonMobil
169、actively engages with industry,including API and Ipieca,to improve emission factors and methodologies,including measurements and estimates.Any reference to ExxonMobils support of,work with,or collaboration with a third-party organization within these publications do not constitute or imply an endors
170、ement by ExxonMobil of any or all of the positions or activities of such organization.ExxonMobil participates,along with other companies,institutes,universities and other organizations,in various initiatives,campaigns,projects,groups,trade organizations,and other collaborations among industry and th
171、rough organizations like the United Nations that express various ambitions,aspirations and goals related to climate change,emissions,sustainability,and the energy transition.ExxonMobils participation or membership in such collaborations is not a promise or guarantee that ExxonMobils individual ambit
172、ions,future performance or policies will align with the collective ambitions of the organizations or the individual ambitions of other participants,all of which are subject to a variety of uncertainties and other factors,many of which may be beyond ExxonMobils control,including government regulation
173、,availability and cost-effectiveness of technologies,and market forces and other risks and uncertainties.Such third parties statements of collaborative or individual ambitions and goals frequently diverge from ExxonMobils own ambitions,plans,goals,and commitments.ExxonMobil will continue to make ind
174、ependent decisions regarding the operation of its business,including its climate-related and sustainability-related ambitions,plans,goals,commitments,and investments.ExxonMobils future ambitions,goals and commitments reflect ExxonMobils current plans,and ExxonMobil may unilaterally change them for v
175、arious reasons,including adoption of new reporting standards or practices,market conditions;changes in its portfolio;and financial,operational,regulatory,reputational,legal and other factors.References to“resources,”“resource base,”“recoverable resources”and similar terms refer to the total remainin
176、g estimated quantities of oil and natural gas that are expected to be ultimately recoverable.The resource base includes quantities of oil and natural gas classified as proved reserves,as well as quantities that are not yet classified as proved reserves,but that are expected to be ultimately recovera
177、ble.The term“resource base”is not intended to correspond to SEC definitions such as“probable”or“possible”reserves.For additional information,see the“Frequently Used Terms”on the Investors page of the Companys website at under the header“Resources.”References to“oil”and“gas”include crude,natural gas
178、liquids,bitumen,synthetic oil,and natural gas.The term“project”as used in these publications can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.Exxon Mobil Corporation has numerous affiliates,many with names
179、 that include ExxonMobil,Exxon,Mobil,Esso,and XTO.For convenience and simplicity,those terms and terms such as“Corporation,”“company,”“our,”“we,”and“its”are sometimes used as abbreviated references to one or more specific affiliates or affiliate groups.Abbreviated references describing global or reg
180、ional operational organizations,and global or regional business lines are also sometimes used for convenience and simplicity.Nothing contained herein is intended to override the corporate separateness of affiliated companies.Exxon Mobil Corporations goals do not guarantee any action or future perfor
181、mance by its affiliates or Exxon Mobil Corporations responsibility for those affiliates actions and future performance,each affiliate of which manages its own affairs.For convenience and simplicity,words like venture,joint venture,partnership,co-venturer and partner are used to indicate business rel
182、ationships involving common activities and interests,and those words may not indicate precise legal relationships.These publications cover Exxon Mobil Corporations owned and operated businesses and do not address the performance or operations of our suppliers,contractors or partners unless otherwise
183、 noted.In the case of certain joint ventures for which ExxonMobil is the operator,we often exercise influence but not control.Thus,the governance,processes,management and strategy of these joint ventures may differ from those in these reports.At the time of publication,ExxonMobil has completed the a
184、cquisition of Denbury Inc.and is in the process of acquiring Pioneer Natural Resources.These reports do not speak of these companies historic governance,risk management,strategy approaches or emissions performance unless specifically referenced.These reports or any material therein is not to be used
185、 or reproduced without the permission of Exxon Mobil Corporation.All rights reserved.SUPPLEMENTAL INFORMATION FOR NON-GAAP AND OTHER MEASURESThe Resiliency section of the Advancing Climate Solutions Report mentions modeled operating cash flow in comparing different businesses over time in a future s
186、cenario.Historic operating cash flow is defined as net income,plus depreciation,depletion and amortization for consolidated and equity companies,plus noncash adjustments related to asset retirement obligations plus proceeds from asset sales.The Companys long-term portfolio modeling estimates operati
187、ng cash flow as revenue or margins less cash expenses,taxes and abandonment expenditures plus proceeds from asset sales before portfolio capital expenditures.The Company believes this measure can be helpful in assessing the resiliency of the business to generate cash from different potential future
188、markets.The performance data presented in the Advancing Climate Solutions Report and Sustainability Report,including on emissions,is not financial data and is not GAAP data.|2024 Advancing Climate Solutions 20Low Carbon SolutionsAccelerating the worlds paths to net zero and building a compelling new
189、 businessEmission-reduction markets have the potential to grow rapidly and reach massive size in a world progressing toward net zero.This provides significant opportunities for our Low Carbon Solutions business,which represents an important and attractive element of the companys plans to profitably
190、grow for many years to come.Our organization is clear-eyed on the challenges.We also understand the unique and important contributions we can make,and we are embracing the new opportunities.Our customers,many governments,and others recognize our combination of experience,skills,and capabilities that
191、 can meaningfully help reduce the emissions of others.Our strategy is geared toward ensuring strong returns and value growth as the energy transition progresses.Today the world generates about 34 billion metric tons of energy-related CO emissions per year.Industrial activity,power generation,and com
192、mercial transportation together account for 80%of all energy-related CO emissions.1 And while electric vehicles are important and get a lot of headlines,its worth noting that these sectors account for about eight times the carbon emissions of passenger vehicles each year.Were focused on these hard-t
193、o-decarbonize sectors.They must be tackled for society to reach net zero.And thats where our capabilities come in.|2024 Advancing Climate Solutions 21Our company manages molecules.Its what we have done for decades,and its where were focused today.This work involves technologies for capturing,transpo
194、rting,and storing molecules;producing hydrogen from other molecules;and sourcing and co-processing lower-carbon-intensity molecules all of which require the same competitive advantages weve built in our traditional businesses.These markets could exceed$6 trillion globally by 2050.3Government policy
195、plays a key role in building these new markets,especially in the near term.Most of our activity is focused in the United States,which is being accelerated by incentives in the U.S.Inflation Reduction Act(IRA).We support legislation like the IRA,which provides incentives for companies to be part of t
196、he solution.European policy is currently more prescriptive on how emissions must be managed,which limits solutions for the hard-to-decarbonize sectors.At this early stage,supportive policy remains critical to enable emissions reductions,advance technology,and drive scale to improve costs.Ultimately,
197、given the size of the challenge and the costs entailed,a market for emissions reduction will be required to achieve societys net-zero ambition.|2024 Advancing Climate Solutions 22Technology is already playing a critical role,and its where we can add real value.To expand that advantage further,were t
198、ailoring our approach in any given abatement technology as a function of the following:First,were applying resources and driving development in those areas where we think there is an ample technology runway and where we can add value.These are the areas where were working on the development of new a
199、nd potentially breakthrough technologies.Examples include direct air capture,alternate methods of hydrogen production,and application of our deep capabilities in the subsurface for carbon storage.And while were a leader in the technology development in these programs,were continuing to work with oth
200、er companies,governments,or academic institutions that bring unique value to the table.Second are areas where there is significant runway but where we have less existing advantage.In those areas,were looking to partner.An example of this is the Mitsubishi Heavy Industries(MHI)post-combustion capture
201、 partnership.Were integrating existing MHI technology into our“one-stop-shop”carbon capture,transportation,and storage offering,and we are working on joint technical development with MHI to further advance the technology with the goal of lowering the cost of abatement.Third,where technology is matur
202、e,and we do not bring a unique competitive advantage,were looking to purchase or license from established vendors as a smart buyer.Two good examples here are ammonia production and renewable power,which are both well-established technologies with experienced developers.As we strive to play a leading
203、 role in the energy transition,were pursuing more than$20 billion in lower-emission investments from 2022 through 2027,in addition to the approximately$5 billion Denbury acquisition.About 50%of our lower-emission investments are targeted at reducing emissions from operated assets,with the balance go
204、ing toward reducing the emissions of other companies.|2024 Advancing Climate Solutions 23Carbon capture and storageImpermeable cap rockWe capture the carbon dioxide(CO)from an industrial facility and we do it before the CO can escape into the air.The captured CO is transported through a pipeline to
205、a suitable location where it can be injected deep underground.3,200 feet(deeper than 3 Eiffel Towers stacked)CO12The CO is injected 3,200 feet(1,000 meters)underground,beneath impermeable rock formations which provide a natural protective seal.3The CO is safely and securely locked away in undergroun
206、d rock formations.4Why carbon capture and storage?From the International Energy Agency:“Reaching net zero will be virtually impossible”without carbon capture and storage.The United Nations Intergovernmental Panel on Climate Change said carbon capture and storage must be a part of any future net-zero
207、 energy system as a critical mitigation option.ExxonMobil is a global leader in carbon capture and storage|2024 Advancing Climate Solutions 24What it isCarbon capture,transportation,and storage is just what the term implies.Once CO is captured at factories or power plants,we transport and inject it
208、into geologic formations thousands of feet below the earths surface for safe and secure storage.The injected CO is held in place by thick,impermeable seal rocks.Carbon capture and storage,on its own or combined with hydrogen production,is one of the few proven technologies that could enable signific
209、ant CO emission reductions from high-emitting and hard-to-decarbonize sectors.These include power generation,refining,steel,cement,and petrochemicals manufacturing.According to the Center for Climate and Energy Solutions,carbon capture and storage can capture more than 90%of CO emissions from power
210、plants and industrial facilities.4What respected third parties are saying about carbon capture and storageBoth the International Energy Agency(IEA)and the United Nations Intergovernmental Panel on Climate Change(IPCC)see carbon capture and storage as key to reaching global emissions goals.The IEA NZ
211、E report concludes that more than 7.6 billion metric tons per year of CO will need to be captured and stored by 2050 to reach a net-zero future.By comparison,the worlds current capture capacity is about 40 million metric tons of CO per year.5 The agency has also said“reaching net zero will be virtua
212、lly impossible”without carbon capture and storage.6The IPCC estimates that the cost of achieving a 2C outcome would more than double without carbon capture and storage.7We identify opportunities with concentrated streams of CO near sites with safe and secure storage space,and where we can use existi
213、ng infrastructure to gain scale to offer economical solutions to customers.|2024 Advancing Climate Solutions 25Denbury acquisition creates strong U.S.Gulf Coast CO infrastructure positionCorpus ChristiBaytownBeaumontLake CharlesPort ArthurBaton RougeHoustonTXLAMSALIndustrial emissions sourcesExxonMo
214、bil industrial sitesCO storage sitesAcquired CO pipelineEnhanced oil recoveryNote:All information shown is approximate(e.g.,storage/pipeline location)and has potential to change as projects are developed and implemented.Leading nowWith more than 30 years of experience in carbon capture,we lead the i
215、ndustry in the successful deployment of this technology at scale.We are continuing to develop and expand our capacity for storing CO on a long-term basis.On the U.S.Gulf Coast,were building carbon capture and storage infrastructure that will allow industrial customers to work with us to significantl
216、y reduce their emissions.We expect the first of our Gulf Coast projects to be operational as soon as 2026.Because carbon capture and storage projects require geologic space,we continue to add suitable acreage both onshore and offshore,for this use.Building on our long record of successful collaborat
217、ions with host governments around the world,we are also negotiating to gain access to nationally owned acreage that holds potential for CO storage.We also continue working with the local jurisdictions on the appropriate permitting to sequester CO,which will be essential to the success of these proje
218、cts.Another vital element of establishing a successful business is building a customer base.And in this area,were making great progress with customers that include a major fertilizer company,an industrial gas producer,and a leading steel manufacturer:CF Industries,a leading global manufacturer of hy
219、drogen and nitrogen products,signed the largest of its kind commercial agreement with us to capture and permanently store up to 2 million metric tons of CO emissions annually from its manufacturing complex in Louisiana.The project supports Louisianas objective of net-zero CO emissions by 2050.Linde,
220、one of the worlds leading industrial gases and engineering companies,entered into a long-term commercial agreement with us in which ExxonMobil will capture,transport,and permanently store up to 2.2 million metric tons of CO each year from Lindes new clean hydrogen production facility in Beaumont,Tex
221、as.Nucor Corp.,North Americas largest steel and steel products producer,entered into a long-term commercial agreement with us,in which ExxonMobil will capture,transport,and store up to 800,000 metric tons of CO per year from Nucors manufacturing site in Convent,Louisiana.|2024 Advancing Climate Solu
222、tions 262+2.2+0.8=5CF IndustriesLindeNucorCaptureequivalent to replacing nearly 2-million gasoline-powered cars with electric vehicles8million metric tonsof CO per yearmillion metric tonsof CO per yearmillion metric tonsof CO per yearmillion metric tonsof CO per yearWorking to grow our leadership in
223、 carbon capture and storageOur acquisition of Denbury Inc.supports these major projects and opens opportunities for many others along the U.S.Gulf Coast and in other locations.The acquisition provides ExxonMobil with the largest owned and operated network of CO pipelines in the United States.Combini
224、ng Denburys assets and experience with our capabilities significantly expands our ability to profitably help customers reduce their emissions.Of Denburys 1,300 miles of CO pipeline,roughly 70%is in the Gulf Coast states of Louisiana,Texas,and Mississippi one of the largest U.S.markets for CO reducti
225、on and home to some of ExxonMobils largest integrated refining and chemical sites.Denbury also brings strategically located CO storage sites in this region.We believe these synergies will drive strong growth and returns for our shareholders.A cost-efficient transportation and storage system accelera
226、tes carbon capture and storage deployment for both ExxonMobil and our third-party customers.It supports multiple low-carbon businesses including carbon capture and storage,hydrogen,ammonia,and biofuels.Ultimately,we continue to see potential,working with others in the industry,to create a carbon cap
227、ture and storage business with the capacity to reduce emissions across the Gulf Coast by more than 100 million metric tons per year.9 This transaction is part of our efforts to do that at a lower cost and faster pace.Whats next Improving capture:We continue to research processes,compounds,and materi
228、als to capture carbon more efficiently.These innovations include a new metal organic framework10 that is highly selective to CO,as well as advanced amines that provide enhanced efficiency and stability.11 Developing materials:We are working closely with suppliers and logistics partners to develop ne
229、w designs for offshore transport,while we partner with a wide range of experts on materials integrity for pipeline transport and storage of CO.Studying storage:We are working with leading universities and other research organizations to improve modeling of geologic storage,12 including seal characte
230、rization for containment assessment,as well as optimal long-term monitoring of stored CO.Our research and experimental efforts are advancing knowledge in areas such as monitoring requirements and effective storage capacity.|2024 Advancing Climate Solutions 27HydrogenWhat it isHydrogen is a zero-carb
231、on energy source that can generate the high temperatures needed to produce steel,cement,and refining and chemical products without carbon dioxide emissions.This means it could serve as an affordable and reliable source of energy for hard-to-decarbonize industrial processes.Upstream gas production an
232、d processingH productionH transportCO captureCO storageCO transportHydrogen uses:Industrial facilities Electricity Heavy-duty vehicles Other transportationCustomers|2024 Advancing Climate Solutions 28Baytown future hydrogen plantIn Baytown,Texas,we are developing the worlds largest low-carbon hydrog
233、en production facility.Its being designed to produce 1 billion standard cubic feet of hydrogen per day,which is equivalent to the energy needed to power 1.5 million homes.13 This single project would represent nearly 10%of the Biden administrations goal as reflected in the U.S.National Clean Hydroge
234、n Strategy and Roadmap.14 We expect to capture more than 98%of the CO,or about 7 million metric tons per year,associated with producing this hydrogen.The new plant could supply Gulf Coast industrial customers,as well as our own facilities in the Baytown area,with clean-burning hydrogen fuel for proc
235、ess operations.In addition,tapping into our certified lower-emission natural gas from the Permian Basin should further lower carbon intensity that will be very difficult for others to match.Front-end engineering is underway.Startup is expected as soon as 2028.Leading now Just as we have a long histo
236、ry with carbon capture and storage,we have deep and broad experience with hydrogen as well.We use hydrogen in just about every one of our refining and chemical plants,and were looking to expand that.Whats next Studying technology advances and transport We are participating in cross-industry initiati
237、ves to identify the technology advancements and government policies required to deploy low-carbon hydrogen at scale.For example,natural gas transmission infrastructure has the potential to be used for hydrogen transport.Our membership in the U.S.HyBlend consortium will help address the technical bar
238、riers of blending hydrogen into natural gas pipeline systems.15 In addition to working with industry organizations to develop hydrogen transportation standards,were working with the U.S.Department of Energy to advance understanding of the challenges and opportunities involved.Energy initiative We ar
239、e working with the MIT Energy Initiative16 to develop a new carbon life-cycle tool that measures the end-to-end carbon emissions from different technologies,including blue hydrogen.This tool can help inform policymakers as they consider legislation to incentivize investments in technologies that are
240、 needed to lower societal emissions in an affordable and practical way.|2024 Advancing Climate Solutions 29Lower-emission fuelsWhat they areThese fuels generate less emissions over their life cycle than the traditional fuels they replace.They include biofuels made from renewable sources like plants
241、and waste biomass and synthetics made from hydrogen and captured carbon dioxide.Lower-emission fuels have the high energy density required to move heavy trucks.Renewable diesel can reduce carbon emissions by up to 70%compared to conventional diesel.17 Demand for these fuels is expected to grow rapid
242、ly,driven by the aviation,marine,and heavy-duty trucking industries.Our Global Outlook projects almost 9 million oil-equivalent barrels per day of these fuels by 2050,more than four times 2021 levels.Our Product Solutions business is focused on growing lower-emission fuels by leveraging current tech
243、nology and infrastructure,while our Low Carbon Solutions business is focused on innovation in the next generation of low-emission fuels which are supported by our other low-carbon businesses like carbon capture and storage.Were exploring opportunities to combine biomass-based fuel production with ca
244、rbon capture and storage,enabling very low-or negative-carbon intensity fuel production.Were also looking at how we can efficiently transform natural gas into methanol-based fuels.Our existing capability to convert methanol to multiple end-use fuels,such as marine and jet fuel,could enable a range o
245、f low-to zero-emissions fuels.Low-emission fuels can utilize existing distribution infrastructure,further enabling their cost-effective deployment.Leading now Strathcona,Canada:We are ramping up renewable fuel production at our Imperial Oil refinery near Edmonton,where were building the technology a
246、nd infrastructure to provide renewable diesel to several industries in western Canada.When completed in 2025,the facility is expected to be the largest of its kind in Canada,with capacity of 20,000 barrels a day.Singapore:We leveraged our integrated refining and petrochemical complex in Singapore an
247、d our logistics network in 2022 to deliver the first cargo of certified sustainable aviation fuel(SAF)to Changi Airport as part of a one-year pilot.18Whats next Maritime goals:ExxonMobil supports the International Maritime Organizations(IMO)ambition to reduce total annual GHG emissions from internat
248、ional shipping to reach net-zero by or around 2050.We are working to help our customers determine their best route toward meeting the IMOs GHG emission-reduction goals.As part of this initiative,we are supplying ExxonMobil bio marine fuel oil blends at our Singapore and Amsterdam-Rotterdam-Antwerp b
249、unkering hubs.Testing with Toyota:ExxonMobil is exploring innovative fuel blends with the potential to reduce emissions from road transportation by up to 75%versus conventional fuels available today.In a test we conducted with Toyota Motor Corp.in 2023,our fuels under development proved compatible w
250、ith todays vehicles and existing infrastructure.Fuels that work with current networks will reduce or eliminate the need to build new pipelines and tanks,accelerating and lowering the cost of deployment.Co-processing:We are conducting co-processing trials in our facilities using proprietary technolog
251、y to produce lower-emission fuels,including sustainable aviation fuels.We are evaluating how to deploy our capacity to co-process 100,000 barrels per day of lower-emission fuels to markets where supportive policy exists.The ability to process biofeed and conventional feedstock together through an ex
252、isting fluid catalytic cracker or hydrotreater will allow for faster,lower-cost delivery of these fuels to customers compared to construction of new facilities requiring large capital investments.Fats to fuel:We are evaluating opportunities to lower life-cycle emissions through conversion of bio-bas
253、ed feedstocks for diesel production.With the processes ExxonMobil has developed and our proprietary dewaxing catalyst,we can convert waste fats or vegetable oils into renewable fuels with less byproduct formation and hydrogen consumption than other methods.With an additional step,and provided we can
254、 obtain ample feedstocks,we could use this same process to make sustainable aviation fuels.New jet fuel technology:We recently announced a new technology that can produce jet fuel using renewable methanol as the feedstock.19 This methanol has a lower carbon intensity and can be made through either g
255、asification of biofeeds,such as wood waste,or captured CO and H made by electrolysis of water using renewable electricity.The lower-emission methanol can be converted into sustainable aviation fuel using our innovative technology.We expect this process will provide a higher yield of jet fuel than ot
256、her techniques for the same feedstock,with the potential to be used to make other fuels or chemicals.|2024 Advancing Climate Solutions 30LithiumWhat it isLithium is used for the batteries in electric vehicles and portable electronic devices.Batteries account for 80%of global lithium use.Global consu
257、mption of lithium was 134,000 tons in 2022,up 41%from 2021,according to the U.S.Geological Survey.20 The International Energy Agency expects demand to keep rising,potentially reaching over 1 million tons by 2040.21Leading nowIn November,we announced plans to produce lithium carbonate for use in EV b
258、attery manufacturing by employing direct lithium extraction(DLE)technology in southern Arkansas.By separating the lithium from deep brine reservoirs using available technologies,were working to produce this critical mineral more efficiently and with fewer environmental impacts than traditional hard
259、rock mining.Our existing skills in subsurface exploration,drilling,refining,and chemicals will allow us to bring meaningful scale to this technology and provide auto battery manufacturers with a more reliable,lower-carbon lithium supply option.22|2024 Advancing Climate Solutions 31Other solutionsCar
260、bon capture and storage,hydrogen,lower-emission fuels,and lithium are far from the only emission-reduction opportunities in the world.We are always looking for opportunities that fit our strengths and leverage our current capabilities and businesses.For example,many of our natural gas and LNG custom
261、ers have significant post-combustion emissions that theyd like to abate.We offer a“one-stop shop”for CO capture,transportation,and storage that will enable these customers to reduce their emissions.Were working to accelerate the worlds paths to net zero.Were building on our technology,scale,project
262、execution,and integration advantages to establish a compelling new business.Were leading now with real-world projects moving into execution,and a pipeline of future opportunities.We believe this new business complements our existing businesses and will underpin the corporations future growth and ret
263、urns for decades to come.Expanding our advantage through integrated value chains|2024 Advancing Climate Solutions 32Footnotes1.ExxonMobil 2023 Global Outlook.2.Total addressable market based on ExxonMobil analysis of the IPCCs Sixth Assessment Report Scenarios Database hosted by IIASA for carbon cap
264、ture and storage,wind,solar,hydrogen,nuclear,biofuels,geothermal,and hydropower.Secondary energy demand and prices in 2050 in the Likely Below 2C scenarios(Category C3)were used,where available,to calculate an estimate of potential market revenue.Carbon capture and storage estimate includes both CCS
265、 and direct air capture and used price of carbon for pricing estimate.Biofuels estimate used liquids pricing for pricing estimate.2020 dollars.3.Ibid.4.Center for Climate and Energy Solutions,https:/www.c2es.org/content/carbon-capture/.5.International Energy Agency(2021),Net Zero by 2050,IEA,Paris,h
266、ttps:/www.iea.org/reports/net-zero-by-2050.6.IEA(2020),Energy Technology Perspectives 2020:Special Report on Carbon Capture Utilisation and Storage.https:/www.iea.org/reports/ccus-in-clean-energy-transitions.7.O.Edenhofer et al.,Climate Change 2014:Mitigation of Climate Change.Contribution of Workin
267、g Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change:https:/www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_full.pdf.8.ExxonMobil analysis based on assumptions for U.S.in 2022,including average distance traveled,fuel efficiency,average power grid carbon in
268、tensity,electric vehicle charging efficiency,and other factors.Gas-powered cars include light-duty vehicles(cars,light trucks and SUVs).9.Market potential for emission reduction opportunity based on ExxonMobil analysis of CO pipeline routes,current and potential capacity,potential emitters in the U.
269、S.Gulf Coast market,and potential infrastructure upgrades.Subject to additional investment by ExxonMobil,customer commitments,supportive policy,and permitting for carbon capture and storage projects.10.E.J.Kim;R.L.Siegelman;H.Z.Jiang;A.C.Forse;J.-H.Lee;J.D.Martell;P.J.Milner;J.M.Falkowski;J.B.Neaton
270、;J.A.Reimer.Cooperative carbon capture and steam regeneration with tetraamine-appended metalorganic frameworks.Science 2020,369(6502),392-396.11.P.Kortunov,M.Siskin,L.Baugh,D.Calabro“In Situ Nuclear Magnetic Resonance Mechanistic Studies of Carbon Dioxide Reactions with Liquid Amines in Aqueous Syst
271、ems:New Insights on Carbon Capture Reaction Pathways”Energy Fuels,29,9,59195939(2015).12.G.Wen,M.Tang,S.M.Benson,Towards a predictor for CO plume migration using deep neural networks,Int.J.Greenhouse Gas Control,105,103223,2021.13.ExxonMobil analysis leveraging the average annual electricity consump
272、tion for a U.S.residential utility customer in 2021 per https:/www.eia.gov/tools/faqs/faq.php?id=97 and assumed efficiency of a natural gas combined cycle plant on a lower heating value basis.14.U.S.National Clean Hydrogen Strategy and Roadmap:https:/www.hydrogen.energy.gov/docs/hydrogenprogramlibra
273、ries/pdfs/us-national-clean-hydrogen-strategy-roadmap.pdf.15.HyBlend:Pipeline CRADA Materials R&D,https:/www.hydrogen.energy.gov/docs/hydrogenprogramlibraries/pdfs/review22/in035_san_marchi_2022_o-pdf.pdf.16.E.Gencer,S.Torkamani,I.Miller,T.Wu,F.OSullivan,Sustainable energy system analysis modeling e
274、nvironment:analyzing life-cycle emissions of the energy transition,Applied Energy 277(2020)115550.17.Based on ExxonMobil analysis using Argonne National Labs GREET2022 model and published fuel carbon intensity from California LCFS regulations.Argonne National Laboratory GREET model:https:/greet.anl.
275、gov/,California Air Resources Board Low Carbon Fuel Standard Regulation:https:/ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard/lcfs-regulation.18.EM Press Release(Jul 2022):https:/ Press Release(Oct 2023):https:/ smaller footprint of lithium mining and expected lower carbon and water impac
276、ts:EM analysis of external sources and third party life-cycle analyses.1)Vulcan Energy,2022 https:/v-er.eu/wp-content/uploads/2022/04/Apr-Corp-Preso.pdf,Minviro publication.Grant,A.,Deak,D.,&Pell,R.(2020).2)The CO Impact of the 2020s Battery Quality Lithium Hydroxide Supply Chain-Jade Cove Partners.
277、https:/ gas,and water life cycle analysis of lithium carbonate and lithium hydroxide monohydrate from brine and ore resources and their use in lithium ion battery cathodes and lithium ion batteries.Resources,Conservation and Recycling,174,105762.|2024 Advancing Climate Solutions 33MethaneDriving red
278、uctions in methane emissionsHighlighting our progressWhat weve doneWhat were doing Cut operated methane emissions intensity in half since 2016 On plan to reduce methane intensity versus 2016 across all operated assets 70%-80%by 20301 Eliminated routine flaring in Permian Basin operated assets On tra
279、ck to achieve zero routine flaring across all operated upstream assets by 2030,consistent with World Bank Zero Flaring Initiative2 Eliminated“high-bleed”pneumatic devices in our U.S.operated unconventional assets On track to eliminate natural gas-driven pneumatic devices by 2025 in our key U.S.uncon
280、ventional operated assets In 2022 alone,we surveyed 2.3 million components with optical gas imaging cameras and 1.3 million components with aerial flyovers Expanding continuous monitoring program in the Permian to cover 700 unconventional production sites by 2025 Progressed collaborations including
281、deciding to join the U.N.Oil and Gas Methane Partnership(OGMP)2.0 Partnering with Scepter to launch 2 monitoring satellites in 2025 with a plan to have 24 in place over the next three years Launched our Center for Operations and Methane Emissions Tracking(COMET)in 2022 to provide near-continuous rea
282、l-time monitoring|2024 Advancing Climate Solutions 34Methane:The other greenhouse gasMethane is a deceptively simple molecule.With just one carbon and four hydrogen atoms,its the principal component in natural gas.Methane has the high energy density needed to make natural gas a reliable and flexible
283、 energy source that is already helping to meaningfully reduce carbon emissions around the world and will continue to be critical in achieving a lower-emission future.Our Global Outlook forecasts natural gas to make up more than 25%of the global energy mix in 2050.Reducing corporate-wide methane emis
284、sions intensityHere are a few reasons why natural gas is such a great option:Choosing natural gas-fired electricity generation to replace older,inefficient coal plants can reduce greenhouse gas emissions by up to 60%,while producing fewer air pollutants.Natural gas resources are geographically and g
285、eologically diverse and abundant;natural gas is reliable and versatile for everything from power to transportation to home use.Natural gas is a reliable source for the required backup power generation when the wind isnt blowing enough to turn wind turbines and the sun isnt shining to fuel solar pane
286、ls.But,as with any form of energy,there are tradeoffs.For natural gas,in addition to CO,its the issue of fugitive methane or put simply,methane that is leaked to the atmosphere,where it is a potent greenhouse gas.It exists for a short time when compared to CO,but with a higher global warming potenti
287、al.In fact,on a 100-year timespan,each kilogram of methane equals about 30 kilograms of CO.3Thats why its important for us to keep methane contained and managed in our operations in our pipeline networks,in our storage tanks,and in our processing equipment.Managing methane is good business.Fewer met
288、hane leaks also means more product to sell.|2024 Advancing Climate Solutions 35Methane at ExxonMobilMethane emissions in our industry come from four primary sources:Flaring is the burning of excess natural gas for safety or other reasons,resulting in CO emissions.Venting is when pneumatic devices,st
289、orage tanks,dehydration units,and other components of our operations sometimes release excess methane from our equipment to the atmosphere to reduce pressure and help ensure personnel safety.Fugitive emissions that occur when we experience unintentional leaks from our equipment.Combustion slip is un
290、combusted methane left over in the exhaust of natural gas fired engines used to power operations.As reported in our data table,methane emissions at ExxonMobil were approximately 140,000 metric tons CH in 2022,about 4%of our total Scope 1 emissions on an operated basis.The charts below illustrate whe
291、re we have our biggest opportunities to tackle the methane challenge and provide greater transparency into the sources of methane emissions from our upstream operations,which comprise 96%of our methane emissions.60%24%16%United StatesAll Non-U.S.Other U.S.Permian76%By locationBy source39%16%15%14%16
292、%Pneumatic decivesEnginesFugitivesFlaresOthersExxonMobil methane emissions4The methane challengeMethane is odorless and colorless.When leaked,there are only a small number of methane molecules relative to the volume of surrounding air.A gust of wind can easily disperse those molecules,obscuring the
293、source.Our assets are often in remote locations with extreme weather conditions,making detection a challenge.Finding methane leaks in those environments,across vast acreage,is not simple.Methane emissions are not concentrated at certain points or at certain times in our operations.Leaks can be short
294、 in duration,low in volume,infrequent in occurrence,and therefore harder to identify.|2024 Advancing Climate Solutions 36Aiming for zeroIn March 2022,ExxonMobil joined others in our industry to launch the Aiming for Zero Methane Emissions Initiative.Our efforts support the goals of the Global Methan
295、e Pledge and the U.S.Methane Emissions Reduction Plan as well as ExxonMobils 2050 net-zero ambition.Were implementing a multilayered approach that includes leading-edge technology to monitor,measure,and mitigate methane emissions.Satellite imagingAerial flyoversContinuous ground monitorsZero routine
296、 flaringPneumatic device phase out by 2025Tankless design on new buildEngine electrificationRapid detection of non-routine sourcesand routine sourcesElimination of potential non-routineElimination of routinesourcesMitigating uncertaintyzeroMonitoring and detectionIn our ongoing efforts to target and
297、 eliminate methane emissions,we continue to develop and deploy enhanced technologies for rapid detection,mitigation,and quantification of sources of methane at our operated assets.On the ground,in the air,and in space,the technology and processes we use to identify non-routine methane emissions prov
298、ide us with a wide range of data points to inform and continuously improve our mitigation efforts.At this time,were advancing detection technologies in nine countries at operated assets that we estimate account for more than 80%of our methane emissions.Methane balloonAircraftDrone&UAVsGround monitor
299、ingLow-Earth orbit satellite|2024 Advancing Climate Solutions 37Methods of detectionMethodTechnologies Detection thresholds*ConsiderationsExxonMobil sites*Manual detection Handheld devices Portable detectorsLess than 1 kg/hrAdvantages:Precise location of emissions,using services already available in
300、 some locationsLimitations:Labor intensive,periodic,and subject to human error.Does not provide quantification.No access to difficult-to-reach locations.Permian Basin,U.S.Eagle Ford,U.S.Bakken,U.S.Appalachian Basin,U.S.Haynesville,U.S.LaBarge,U.S.Guyana FPSO Hebron,Canada Kearl Oil Sands,Canada Cold
301、 Lake,Canada Normal Wells,Canada Malaysia Nigeria AngolaFacility-scale,near-continuous monitoring Fixed cameras On-the-ground sensors25 kg/hr less than 1 kg/hrAdvantages:Stationary monitoring,offering potential 24/7 coverage of an individual site,including duration of leaks.Limitations:Requires prec
302、ise weather data for quantification.Additional research and innovation still needed to make this technology scalable.Permian Basin,U.S.Freestone,U.S.Facility-scale,periodic monitoring Drones Mobile labsLess than 1kg/hrAdvantages:Can cover multiple sites in their entirety,including areas unreachable
303、by handheld devices.Limitations:Requires individual site visits.Airspace regulations may restrict drone use.Monitoring is not continuous.Permian Basin,U.S.Freestone,U.S.Aerial detection Airplanes High-altitude platforms(i.e.,balloons)50 kg/hr less than 3 kg/hrAdvantages:Can cover hundreds of sites p
304、er day,often using existing technology.Limitations:Additional detection often needed to identify sources within facilities.Permian Basin,U.S.Eagle Ford,U.S.Bakken,U.S.Appalachian Basin,U.S.Haynesville,U.S.Germany AustraliaSatellite detection Low-earth orbit networks25,000 kg/hr 100 kg/hrAdvantages:G
305、lobal,near-continuous coverage.Potentially lower cost.Limitations:High detection thresholds and sensitivity to environmental conditions.Permian Basin,U.S.Cold Lake,Canada*Detection thresholds vary depending on human and environmental factors,including weather and wind conditions.*Includes sites wher
306、e these technologies have been piloted or deployed.Planning stages.|2024 Advancing Climate Solutions 38The technology to detect and quantify methane emissions continues to improve through collaboration and innovation supported by constructive government policy.While the current industry and regulato
307、ry approach on the ground is focused on manual leak detection,were continuing to invest to develop and deploy technologies to increase the efficiency,precision,and coverage of our detection abilities.For example,Project Astra is a collaboration of universities,environmental groups,and industry partn
308、ers that is developing an innovative sensor network to continuously monitor methane emissions across large areas of Texas.This high-frequency monitoring system will give us the tools for quick leak detection and repair at specific locations,lowering costs and improving efficiency.After the completio
309、n of the first phase of the project in early 2023,the Department of Energy approved additional funding to extend Project Astra basin-wide.Advances in facility-scale,near-continuous monitoring like this will enable sensitive,specific detection of methane emissions over time.Periodic monitoring using
310、airplanes or drones can further expand coverage on land to dozens of onshore sites per day,depending on local conditions and logistics.In the air,the moment-in-time observations provided by airplane surveys continue to be a valuable source of data,but were going higher to enhance detection across la
311、rger areas on a more continuous basis.In 2023,we achieved an important milestone in our collaboration with Scepter,using a high-altitude balloon to test advanced imaging technology and proprietary data processing platforms to detect methane emissions across a large operating area in the Permian Basi
312、n.The data collected is the first of its kind,representing the first real-world demonstration of the potential for continuous methane monitoring over a broad region.Finally,on the frontier of global emissions detection,were venturing into space.Were working with Scepter and Amazon Web Services to de
313、velop satellite-based technology to design and optimize satellite placement and coverage,initially focused on capturing methane emissions data from our operations in the Permian Basin.Scepter anticipates increasing coverage with more than 24 satellites over three years,forming a large constellation
314、network capable of monitoring oil and natural gas operations around the world.COMET:Bringing it all together in real timeYour home smoke detector serves an important purpose.When the alarm sounds you know that it has sensed a problem,whether its smoke or just a low battery,you know that you need to
315、respond.Our Center for Operations and Methane Emissions Tracking(COMET)operates on the same simple principle,scaled to cover massive acreages with diverse sources of data.Launched in 2022,COMET is a$20 million investment to centralize,continuously monitor and analyze methane emissions data from sour
316、ces across our operations in the Permian Basin for rapid detection and mitigation.When fully deployed at all 700 operated sites across 1.8 million acres in the Permian,COMET will ultimately provide near-continuous,real-time monitoring in the region.With opportunities to expand outside the Permian Ba
317、sin,COMET is a potential game changer for ExxonMobil and the industry.Our methane-reduction roadmap in the Permian BasinBack in 2021,we became the first company to announce plans to achieve net zero by 2030 for Scope 1 and 2 greenhouse gas emissions from unconventional operated assets in the U.S.Per
318、mian Basin.Reducing methane emissions is a key part of that plan.To date,we have focused largely on improving detection and response times to potential leaks,an effort that has led us to be recognized as an industry leader by the Environmental Defense Fund in its three-year direct measurement study
319、in the Permian Basin.5 Currently,remote operators receive automated alerts when an event is detected,analyze the data,and dispatch crews.In the years ahead,we are focused on expanding these continuous monitoring and response capabilities,as well as automating the collection and analysis of data thro
320、ugh integrated operations support centers like COMET to advance quantification of methane and analysis of trends over time.|2024 Advancing Climate Solutions 39Measurement and reportingWe have reported our methane emissions publicly every year since 2014.This is an important part of our transparency
321、efforts,and it enables us to work with academia,peers in our industry,and other stakeholders to continuously improve our shared understanding of methane emissions.The data we report is based on internationally recognized methodologies and compiled each year by determining emissions by source at each
322、 operated asset across our company.With formal and informal guidance from frameworks like Veritas and the Oil and Gas Methane Partnership,our emissions data reporting improves each year,even as weve already begun the work of reducing the emissions themselves.Methane is measured through interconnecte
323、d processes.Snapshots of methane concentrations in the atmosphere provide,as described above,one input.Considering local weather patterns,the size and shape of an observed methane plume,and other environmental factors helps us model the rate and volume of the emissions.This process guides our timely
324、 mitigation efforts by identifying large or unexpected sources of methane.Understanding emission factorsEmission factors,consistent with regulatory reporting requirements and established by reputable third parties,help us to further understand our methane emissions.This standardized practice helps u
325、s to credibly estimate emissions,covering common sources across our business.What are emission factors?Emission factors add to observational and other data to provide an estimate for average methane emissions.Classes of equipment,types of activities,or other variables are multiplied by the relevant
326、emission factor to provide a credible estimate for our emissions inventory.Derived from sources like the American Petroleum Institute and the U.S.EPA Greenhouse Gas Reporting Program,emissions factors help oil and natural gas companies track methane emissions in a consistent way.As direct measuremen
327、t and detection technologies evolve,emission factors are expected to be used less industry-wide.We have long been a leader in advocating for strong measurement,reporting,and verification standards.Combined with the ongoing innovations in monitoring and detection,improvements in measuring and quantif
328、ying methane emissions are leading to a deeper understanding of emission sources and mitigation actions.We are focused on emissions mitigation and the transition to observation-based emission quantification of potential non-routine sources.|2024 Advancing Climate Solutions 40Mitigating methane emiss
329、ionsOur detection and quantification work continues to improve the accuracy of the methane volumes and intensity we report each year and helps us assess the scale of the methane challenge and the effectiveness of the work were already doing.The framework weve established and shared has enabled the d
330、evelopment of consistent and comparable data which,along with growing field measurements,guide our mitigation efforts.The Methane Guiding Principles includes ExxonMobils framework as a resource for regulators in their Methane Policy toolkit,with potential applications across the natural gas value ch
331、ain.We are proud of this thought leadership and our contribution to this challenge.To lower our methane intensity,we are evolving the designs of our facilities,continuously improving our operations processes and protocols,and pursuing advanced technologies to meet the needs of our customers with few
332、er emissions.Flaring is perhaps our most visible source of methane emissions because the flame can be seen by the naked eye.In 2022,flaring comprised about 14%of our operated methane emissions.It occurs as a safety measure when the volume of gas exceeds the capacity of our facilities.When these need
333、s are anticipated and planned,we call that“routine flaring,”and we are working to eliminate this process from our operations.We have committed to eliminate routine flaring in line with the World Bank Zero Routine Flaring Initiative in our operated assets by 2030 something we achieved in our operated Permian Basin unconventional assets at the end of 2022.In addition to installing and upgrading our