ExxonMobil to Eliminate Routine Flaring in the Permian Basin by End 2022

ExxonMobil became the latest fossil fuel company to announce its emission reduction targets earlier this week with plans to end routine flaring next year and achieve Net Zero emissions by 2030 in its Permian Basin operations.

The Permian Basin, located in the South Western United States, is one of the world’s most prolific oil fields and the largest in America. Many major fossil fuel companies – including Chevron, Exxon, Occidential and Apache – operate in the Basin.

“Our groundbreaking plans to reach net zero for Permian Basin operations further demonstrate our commitment and support of society’s ambitions for a lower-emissions future,” said Darren Woods, chairman and chief executive officer, in a company press release. “We have plans to reduce greenhouse gas emissions intensity across our businesses by deploying the capabilities and technical strengths that are foundational to ExxonMobil.”

ExxonMobil says that it has already made significant reductions in flaring volumes; it expects flaring in its Permian Basin operations will be 75% less this year than in 2019. By the end of next year, the company says it will eliminate all routine flaring in the Permian to support of the World Bank’s Zero Routine Flaring initiative.

Oil companies use flaring to burn off excess natural gas during the extraction of oil. This is done to keep workers and equipment safe by reducing the risk of uncontrolled gas explosion or fire. The practice has come under scrutiny, though, as it wastes the gas and releases carbon dioxide and other harmful particulates into the atmosphere. The World Bank’s Zero Routine Flaring Initiative aims to eliminate the practice by working with industry to identify solutions to use or conserve the gas.

Exxon’s goal in the Permian Basin is part of a broader commitment to reduce its Upstream greenhouse gas emission intensity by 40-50% by 2030, compared to 2016 levels.

To reach these goals, Exxon says that it will focus on electrifying operations with low carbon power such as wind solar, hydrogen and natural gas with carbon capture. It will also continue to invest in methane mitigation and detection technology that includes aerial flyovers, satellite surveillance and ground-based sensors that continuously monitor for leaks. Finally, the company says that it will eliminate routine flaring, upgrade equipment, and employ emissions offset technology,

Following on from the COP26 summit in Scotland earlier this year, many fossil fuel companies have rushed to align themselves with the commitments of world leaders to reduce carbon emissions to “net zero” by 2050. BP, Shell, Total and Repsol, for instance, are among the oil majors that have publicly announced plans to reach Net Zero by 2050. Others have announced ambitious plans to reduce carbon emissions and intensity.

They’re also starting to put their money where their mouth is. According to Wood Mackenzie,  a global research and consultancy business, investment in renewable energy by Oil and Gas major has more than doubled since 2019/20.

The Euro Majors are now projected to spend almost 25% of total investment in renewables such as wind and solar energy. US energy giants are also increasing investment in renewables at approximately 10% of total investment.

To validate its emissions-reduction efforts, ExxonMobil is working with independent validator, non-profit MIQ.

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