Exxon Mobil: In 2040, Oil Still Reigns

  By Aisha Al-Muslim 
 

Oil will continue to play a leading role in the world's energy mix by 2040 despite growth in the production of energy from renewable sources, Exxon Mobil Corp. said Friday.

The findings are part of Exxon's energy and carbon summary and its outlook for energy into 2040.

Shareholders had approved a resolution at Exxon's annual meeting last year for the company to share more information about how climate change and regulations could affect business. Exxon said that oil and natural gas will continue to supply about 55% of world's energy needs in 2040. Oil demand will rise about 20%, driven by commercial transportation and chemicals, the company said.

Exxon analyzed scenarios that included drastic limits to future greenhouse-gas emissions and the kinds of changes in world-wide energy use that would be needed to avoid significant increases in global atmospheric temperatures.

"Our job is to supply the energy the world needs in an environmentally responsible way," Chief Executive Darren Woods said in prepared remarks. "It's a dual challenge--we need to meet society's growing need for energy while addressing the risks of climate change."

In 2040, global carbon-dioxide emissions are likely to peak at about 10% above 2016 levels as energy sources shift toward lower-emission fuels such as natural gas, renewables and nuclear, Exxon said. Nuclear and renewable energy sources are likely to account for nearly 40% of the growth in global energy demand, the company said.

Electricity from solar and wind will grow about 400%. While the electricity generated from coal will fall to less than 30% in 2040 from 40% in 2016.

Electrification of full hybrid, plug-in hybrid, and electric-only vehicles is anticipated to approach about 40% of global light-duty vehicle sales in 2040, compared with about 3% in 2016. Exxon said that since 2000, it has invested about $8 billion to develop technologies, such as carbon capture and algae biofuels, to lower-emissions.

Shares fell 5.1% to $84.53 Friday as the company reported a quarterly profit that fell short of analysts' expectations.

Write to Aisha Al-Muslim at [e-mail]

(END) Dow Jones Newswires

February 02, 2018 17:39 ET (22:39 GMT)

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