ExxonMobil has announced a reduction in its planned investments in low-emission greenhouse gas projects, lowering its forecast to $20 billion for the 2025–2030 period. This adjustment represents a $10 billion decrease compared to the estimates released last December. The group stated that the changes are occurring amid evolving market conditions and shifts in U.S. federal policy.
Ongoing projects on the Gulf Coast
In a communication to shareholders, ExxonMobil confirmed its commitment to several carbon capture and storage (CCS) projects. The company identified seven potential sites along the U.S. Gulf Coast, at various stages of development. These projects aim to extract carbon dioxide generated by industrial activities and reinject it into underground geological formations. The group intends to continue evaluating and preparing these projects depending on favourable economic conditions.
Kathy Mikells, the company’s Chief Financial Officer, stated that CCS technology “is really beginning to generate customer interest” during a videoconference. She noted that commercial discussions are intensifying with industrial clients interested in these solutions, without giving any specific timeline for investment decisions.
Refocusing driven by financial performance
ExxonMobil reiterated that its investments in low-carbon technologies “will continue to depend on the development of supportive policies” and will be assessed based on their ability to “ensure strong returns and value creation for shareholders.” These projects account for a limited portion of the overall investment budget, which remains largely focused on traditional oil and gas operations.
Alongside this spending reduction, the oil major raised its profit and cash flow growth forecasts by $5 billion over the same period. This increase is attributed to a reduction in operating costs. The group did not specify how this improved financial performance would affect the future allocation of its capital.
Political climate influencing strategic decisions
ExxonMobil’s decision comes as federal climate policy directions in the United States are shifting, affecting the outlook for support of emissions-reduction technologies. Energy sector companies are adjusting their investment plans in response to these new priorities.
