Strategy

ExxonMobil's business strategies are underpinned by a deep understanding of global energy system fundamentals.

Our actions

These fundamentals include the scale and variety of energy needs worldwide; capability, practicality and affordability of energy alternatives; greenhouse gas emissions; and government policies. These fundamentals are considered in conjunction with the Company's Outlook for Energy to help inform long-term business strategies and investment plans. ExxonMobil is committed to providing reliable and affordable energy to support human progress while implementing and advancing effective solutions to mitigate environmental risks. Actions to address the risks related to climate change, depicted below, position the Company to responsibly meet the growing energy demand of an increasingly prosperous world.

Mitigating emissions in Company operations

ExxonMobil has a robust set of processes to improve energy efficiency and mitigate emissions, including programs focused on reducing methane emissions, flaring and venting. These processes include, where appropriate, setting tailored objectives at the business, site and equipment level, and then stewarding progress toward meeting those objectives. This rigorous approach is effective to promote efficiencies and reduce greenhouse gas emissions in operations while striving to achieve industry-leading performance.

Developing and deploying scalable technology solutions

ExxonMobil’s sustained investment in R&D plays an important role in positioning the Company to develop next generation solutions and progress breakthroughs in areas such as carbon capture, biofuels and energy-efficient process technology. These solutions are critical to addressing the risks of climate change, and have the potential to be used across multiple sectors including the power, industrial and long-distance heavy-duty transportation sectors.

Providing products to help customers reduce their emissions

Over the next few decades, population and income growth, and an unprecedented expansion of the global middle class, are expected to create new demand for energy and hydrocarbon-based products, even under 2°C scenarios. ExxonMobil is responding to this growth in product demand by delivering solutions that enable customers to reduce their emissions and improve energy efficiency.

Proactively engaging on climate-related policy

ExxonMobil engages on policy directly, through trade associations and focused industry collaboration efforts, such as the Oil & Gas Climate Initiative. Policy solutions to address climate change should be balanced, recognizing the increasing global demand for affordable energy, which is vital to addressing global poverty, education, health and energy security. Given this dual challenge, the Company encourages sound policy solutions that reduce climate-related risks across the economy at the lowest societal cost.

2017 global energy-related CO2 emissions by sector

billion tonnes

ExxonMobil 2019 Outlook for Energy

Energy supply and demand trends

The Outlook for Energy is ExxonMobil’s view of energy demand and supply through 2040 and helps inform ExxonMobil’s long-term strategies, investment plans and research programs. Given the uncertainty around the near-term impacts of COVID-19 on economic growth, energy demand and energy supply, and lack of precedent, the Company is considering a range of recovery pathways to guide near-term plans.  These pathways expect that energy demand will grow beyond 2019 levels post-2022 as COVID-19 impacts phase out and long-term drivers prevail.

Signposts for an evolving energy landscape

Changes in the relative cost of new technologies compared to existing or alternative energy sources may further increase shifts in the global energy mix. Using Company and third-party sources, ExxonMobil monitors a variety of signposts that may indicate a potential acceleration in shifts to the energy landscape. 
Learning more through sensitvity analysis

Developing and deploying scalable technology solutions

ExxonMobil’s sustained investment in R&D plays an important role in positioning the Company to develop next generation solutions and progress breakthroughs in areas such as carbon capture, biofuels and energy-efficient process technology.
These solutions are critical to addressing the risks of climate change.