ExxonMobil plans to achieve net zero greenhouse gas emissions from operated assets in the US Permian basin by 2030, accelerating and expanding its emission-reduction plans for unconventional operations in New Mexico and Texas. The plans are part of the company’s effort to reduce upstream greenhouse gas emissions intensity by 40-50% by 2030, compared to 2016 levels.
The greenhouse gas emission-reduction efforts in the Permian will be supported by electrifying operations, continuing investments in methane mitigation and detection technology, eliminating routine flaring, upgrading equipment, and employing emissions offset technology, which may include nature-based solutions.
The company plans to electrify its operations with low-carbon power, which may include wind, solar, hydrogen, natural gas with carbon capture and storage, or other emerging technologies. ExxonMobil plans to expand its methane detection programs utilizing satellite surveillance and a network of ground-based sensors for continuous monitoring, and aerial flyovers that identify leaks for rapid repairs.
By yearend 2021, ExxonMobil anticipates reduced flaring volumes across its Permian basin operations by more than 75% compared to 2019. The company plans to eliminate all routine flaring in the Permian by yearend 2022. The company is also securing alternative natural gas delivery points across the basin to minimize non-routine flaring.
At end third-quarter 2021, ExxonMobil produced an average of 500,000 boe/d from its unconventional assets in the Permian basin, accounting for more than 40% of the company’s US net production. As production increases in the Permian, greenhouse gas emissions are expected to be mitigated accordingly, the company said.
ExxonMobil is on track to exceed its 2025 greenhouse gas emission-reduction plans announced in December 2020. Yearend 2021 results are expected to show a reduction of 15-20% in greenhouse gas intensity from upstream operations compared to 2016 levels, 4 years ahead of schedule. This is supported by an anticipated reduction of 40-50% in methane intensity and 35-45% in flaring intensity compared to 2016.