Exxon commits US$15B to lowering emissions by 2027 but spending three times the amount in fossil fuel projects in same period
Map showing the location of ExxonMobil’s future projects offshore Guyana
By Kaieteur News
Petroleumworld 12 03 2021
American oil giant, ExxonMobil Corporation, was proud to announce to the international market that it is taking action to reduce its emissions output. To achieve this through to 2027, the company said it has committed US$15B in investments that will ensure a balance between projects to reduce greenhouse gas emissions from existing operations and increased investments in its Low Carbon Solutions business.
But, even as ExxonMobil says it has set aside a sizeable sum to lower emissions output, it has neglected to highlight that it is pumping over US$45B into massive fossil fuel projects during the same period. These projects are part of the oil-rich Stabroek Block being led by its affiliate, Esso Exploration and Production Guyana Limited (EEPGL). They include the Liza Phase One Project (US$3.5B), The Liza Phase Two (US$6B), Payara (US$9), Yellowtail (over US$9B), and two more projects similar to the size of Payara. EEPGL’s partner, Hess Corporation, had said recently that Guyana should expect six oil projects by 2027 while adding that it is not a matter of if but when these will come on line.
But Stabroek is just one aspect of the fossil fuel agenda of Exxon in Guyana. The oil major is also pursuing 24 wells evenly across the Kaieteur and Canje blocks with another 12 exploration wells planned for the Stabroek next. With a line of sight of up to 10 Floating, Production, Storage and Offloading (FPSOs) in Guyana to develop approximately 10 billion barrels of oil equivalent resources in the Stabroek Block, the Chief Executive Officer (CEO) of Hess Corporation, John Hess boasted that his company is poised to deliver “unparalleled” growth from the fossil fuel projects. During his recent participation in Bank of America’s Global Energy Conference, he praised the economics of the Stabroek Block projects as he noted that they will be generating between US$3B to US$4B for the company which holds a 30 percent stake in the block.
Expounding further he said, “When Liza Two comes on, we will steadily move down the cost curve. Our Guyana developments have a Brent breakeven price between US$25 and US$35 per barrel. And as our Bakken production in the USA goes up to 200,000 barrels of oil equivalent per day in the next several years we will be able to go down the cost curve.”
The Hess boss added, “By 2026, we predict that our cash unit cost will go down by 25 percent versus this year to approximately US$9 per barrel of oil equivalent resources…”
Further to this, Hess said his company is clearly positioned to deliver industry leading cash flow growth. In this regard, he said between 2021 and 2026, the company’s cash flow is forecast to increase by 25 percent annually.