Talks of looming profits, increased discoveries, and early oil production in Guyana were not enough to distract Wall Street Analysts from challenging ExxonMobil about the effects climate change would have on its operations, and overall, the future profitability of the business.
Specifically cornering Exxon Mobil on this issue during its third-quarter earnings call on Friday was Wall Street Analyst, Jason Gabelman.
The analyst who is also Vice President of Cowen Inc., an American multinational investment bank, wanted details on whether all the resources ExxonMobil owns would be developed in light of concerns around greenhouse gas. He also asked Exxon officials to say how the development of technology for its operations, in keeping with the foregoing concerns, would be considered.
In response, Neil Hansen, the Vice President for Investor Relations at ExxonMobil, said that the company recognizes the risks from climate change as well as the fact that something has to be done about it. He said that without question, Exxon is committed to providing affordable reliable energy, while minimizing the impact on the environment, specifically the need to reduce CO2 emissions.
The official said that 90 percent of global energy emissions come from three sectors. They are power generation, transportation, and the industrial sector. As a result, Hansen said that the challenge Exxon faces, therefore, is finding a comprehensive set of solutions that will allow it to reduce the emissions in those three sectors.
Hansen noted however that ExxonMobil is going to require advances in technology while noting that it is going to require the implementation of effective policies by governments.
As it relates to where ExxonMobil can participate in that solution development, Hansen said that this would be through advantaged research and development capabilities. In this regard, the Exxon Secretary disclosed that the US operator would be attacking each of three sectors noting that the company has a very wide aperture looking for opportunities to develop scalable economic solutions on carbon capture.
In fact, Hansen went further to state that Exxon has spent $10 billion on low-emission technologies since 2000. He said that Exxon recognizes where solution gaps exist and believes new technologies are needed.
He concluded, “We think we have a competitive advantage to participate and find those solutions, while at the same time continuing to create value for our shareholders.”
