ExxonMobil is under fire and accused of lying about its green credentials.
Climate Crashers
At the Democratic National Convention (DNC) last week in Chicago, Exxon got a big, uncomfortable spotlight when climate activists crashed their event with chants of “Exxon lies, people die!” The oil giant was there to hype up their climate solution – carbon capture and storage (CCS) – but it seems they were also capturing a huge chunk of public cash.
Lobbying Bonanza
Exxon has been hyping up CCS as the ultimate climate change fix for months, and they’ve spent big bucks on lobbying to make sure they get a hefty slice of the pie when it comes to climate subsidies. Exxon has poured $54 million straight into lobbying since 2018, with a big chunk of that dedicated to pushing for more support for CCS and hydrogen projects.
IRA Windfall
You could say Exxon has been on a bit of a lobbying spree lately, and for the most part, they’re seeing success thanks to the Inflation Reduction Act (IRA), which was passed last year.
Behind the Green Curtain
But according to a recent report from the Guardian, while they’ve been pushing CCS as a climate fix, the company has actually been working behind the scenes to scupper the green energy transition – all while pocketing millions in government subsidies.
Climate Savior or Cash Cow?
The Guardian report claims that this flashy new climate solution – CCS – is just a sneaky way for Exxon to cash in on taxpayer dollars all while keeping the oil flowing.
Carbon Capture 101
Let’s talk a little about CCS. Exxon claims that CCS is the key to fighting climate change, and on paper, the idea sounds good and relatively simple: capture carbon dioxide from industries like steel and cement and bury it underground.
The CCS Shell Game
But here’s the rub – critics claim that most of the captured carbon isn’t getting anywhere near these underground containers. Apparently, it’s actually being used to pump out more oil through a process called enhanced oil recovery (EOR). So instead of reducing emissions, it’s helping Exxon get more of the stuff that’s causing the problem in the first place.
IEA’s Verdict
The International Energy Agency recently called CCS out for its “underperformance” and “unmet expectations.” Despite this, Exxon has jumped on the bandwagon, and are now billing themselves as a leader in the field.
Green or Greenwashing?
Environmental critics aren’t impressed and claim this is just a clever PR move to justify their continued oil drilling and to cash in on those hefty government subsidies.
Exxon’s Climate U-Turn
Exxon’s shift towards promoting CCS is fairly recent. For decades, the company was more focused on denying climate change and stopping efforts to move toward clean energy. But now that there are billions in subsidies on the table, Exxon is playing a whole new ball game.
The Subsidy Hustle
They’ve been pushing hard for government-subsidized CCS funding, arguing that it’s crucial for cutting emissions while keeping the oil business rolling. They even spent $4.9 billion on Denbury – a company with a massive CO2 pipeline network.
Cornering the Carbon Market
The Guardian report claims that this move, coupled with their aggressive (and successful) lobbying for CCS, has put Exxon in the position to dominate the CCS market and rake in even more cash.
A Subsidy Jackpot
The IRA actually includes increased tax credits for CCS, which have jumped from $50 per ton to as much as $85 per ton for permanent storage and up to $60 per ton for EOR – a subsidy that Exxon is eager to pocket.
Double-Dipping
If the Guardian article is correct, Exxon is double-dipping into government subsidies – first for capturing carbon and then again for using that captured carbon to squeeze the last dregs of oil out of wells through EOR.
Paid to Pollute
They’re accused of not only getting paid to pollute but also raking in profits from the extra oil they extract – all while continuing to contribute to the destruction of the planet.
Exxon’s Oil Obsession
And throughout all of this, the kicker is that Exxon has been spending big on oil. Since 2018, they’ve snapped up 218 new oil and gas licenses.
A Carbon Time Bomb
Environmentalists warn that if Exxon exploits all these new projects, they could end up pumping out over 429 million tons of CO2 – not exactly the kind of green revolution they’re selling us.
Exxon’s 25-Year Vision
Exxon’s CEO, Darren Woods, has even predicted that oil demand will stay steady for the next 25 years. So, despite all the greenwashing, it looks like Exxon could be planning to keep drilling while cashing in on CCS subsidies.
The Big Question
Their antics have raised serious questions about whether CCS is just another way for Big Oil to keep its profits rolling in while making a show of doing something about climate change.
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