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ExxonMobil has slashed its planned spending on low-carbon projects by a third, as oil majors pare back clean energy initiatives.
The Texas-based company announced its 2030 strategy on Tuesday, outlining plans to lift earnings and cash flow by $5bn over the rest of the decade, with no increases in capital spending.
As part of the plan, the company will cut spending on low-carbon initiatives to $20bn over the next five years, down from roughly $30bn previously.
The US oil major defines “low-carbon” spending as investment aimed at reducing greenhouse gas emissions, which arise from its core oil and gas production business. These efforts have been focused on technologies such as carbon capture, biofuels, hydrogen and lithium extraction.
The announcement comes as oil majors pull back from low-carbon projects. In late November Exxon paused plans for a $7bn hydrogen plant, citing low customer demand.
Exxon’s chief executive Darren Woods told the Financial Times last month that assumptions the company made when setting its previous goals for spending on low-carbon projects had not been met, blaming disappointing customer demand and government policies.
Exxon on Tuesday said it expected $25bn in earnings growth and $35bn in cash flow growth by 2030 compared with 2024 on the same constant price and margin basis, a $5bn improvement on its previous plan.
The positive outlook reflected the company’s “stronger contributions from advantaged assets, a more profitable business mix and lower operating costs”, Exxon said.
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