The largest publicly traded oil company in the world, ExxonMobil Corporation (XOM - Free Report) recently initiated its third cogeneration power plant in its Jurong refinery in Singapore. The move will enhance the company’s total electricity capacity by around 25%.
The cogeneration technology aids ExxonMobil capture the heat generated during electricity production. Using natural gas and waste heat from the refinery, the 84 megawatt cogeneration plant can generate electricity and steam, which will power the company's operations in the facility. The company’s anticipates an increase in energy efficiency in the refinery by about 5%, as the new plant will replace two old boilers, which are less efficient.
Following the initiation of the new plant, the overall facility will deliver at least 440 megawatts of cogeneration capacity in Singapore, which will empower integrated refining and petrochemical complex. Moreover, ExxonMobil has stakes in around 5,500 megawatts of cogeneration capacity at approximately 30 locations in the world.
A carbon tax has been proposed for the state-city following the Paris climate accord on direct emitters by the regulatory board, which will be introduced in 2019. This cost saving attempt of ExxonMobil prior to the implementation of the tax will decrease carbon dioxide emissions by 140 kilotonnes per year and help the company to become more environment-friendly. It may also help the company to partly dilute the recent accusations from environmentalists following a study that shows the company publicly downplaying climate change facts stated by its own scientists.
Moreover, ExxonMobil also launched a plan to restrain methane emissions from its onshore assets in the United States during the end of September to reduce carbon footprint.
In this context, we would like to remind investors that other energy majors like BP plc (BP - Free Report) , Chevron Corporation (CVX - Free Report) and Royal Dutch Shell plc (RDS.A - Free Report) are also working toward lowering carbon footprint.
About the Company and Zacks Rank
Irving, TX-based ExxonMobil is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. Approximately 83% of ExxonMobil’s earnings come from operations outside the United States. The company divides operations mainly into three segments: Upstream, Downstream and Chemicals.
ExxonMobil is the world’s best run integrated oil company, given its track record of high return on capital. It has collaborated with Russia for exploring potential commercial reserves in the country. However, tensions between the United States and Russia might affect its efforts to generate shareholder value by exploiting Russian oil and gas reserves.
ExxonMobil carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ExxonMobil has lost 8.5% of its value year to date against the 1.4% rise witnessed by the industry it belongs to.
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