ExxonMobil Corporation (XOM - Free Report) has been actively involved in implementing climate change policies owing to tremendous pressure from investors and environmentalists. Through these initiatives, the company intends to reduce greenhouse emission by 2020. ExxonMobil targets a15% cut in methane emissions and a 25% decline in flaring from levels in 2016.
ExxonMobil announced its goal to enhance industry-leading energy efficiency in refining and chemical manufacturing facilities. The most significant reductions are expected in operations in West Africa, which include use of third-party infrastructure.
The primary objectives incorporate the restriction of greenhouse gas emissions, reduction in global warming, appointment of a climate expert on the board, reports on fracking activities and climate change impact assessments. Therefore, ExxonMobil spends toward lower-emission energy solutions that comprise cogeneration, cut down of flaring, energy competence, biofuels, carbon capture and storage and other technologies.Besides, it also supports research that results in technology breakthroughs and takes part in productive talks on policy options.
Since 2000, ExxonMobil has spent more than $9 billion on lower-emission energy solutions that have enabled the company to achieve10% improvement in energy efficiency across its global refining operations. The company’s chemical business has cut net greenhouse gas emissions intensity by about 7% since 2013, courtesy of the use of advanced efficiency technologies and techniques.
Various initiatives are being executed by ExxonMobil to considerably lower methane emissions. One such instance being, XTO Energy’s leak-detection-and-repair efforts and upgrading of operations at U.S. production and midstream sites, which has led to reduction of projected methane emissions in ExxonMobil’s operations by 2% in the past year.
ExxonMobil is one of the eight global energy companies that maintain guiding principles on methane reduction. The primary focus is on constantly lowering methane emissions, improving performance across gas value chains, developing accuracy of methane emissions data and supporting sound policies as well as regulations on methane emissions.
ExxonMobil is a founding member of the API’s Environmental Partnership, which initially focuses on lowering methane and volatile organic compound emissions.
ExxonMobil is a charter member of the Global Gas Flaring Reduction Public-Private Partnership, which is dedicated to developing commercial prospects to lower flaring. The partnership comprises oil-producing countries, international and state-owned oil companies and the World Bank.
During the past three months, ExxonMobil’s shares have lost 10.8% compared with the industry’s 1.6% decline.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Nine Energy Service, Inc (NINE - Free Report) , Equinor ASA (EQNR - Free Report) and CVR Refining, LP . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company pulled off a positive earnings surprise of 28.57% in the preceding quarter.
Equinor, based in Norway, is a major international integrated oil and gas company. It witnessed an average positive earnings surprise of 11.53% in the last four quarters.
Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.
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