Exxon Mobil CEO urges COP28 to focus on reducing emissions — not phasing out fossil fuels

Dubai,
UNITED
ARAB
EMIRATES
—

Exxon
Mobil
CEO
Darren
Woods
on
Saturday
said
the
“problem
statement”
that
countries
need
to
focus
on
at
the
COP28
climate
summit
is
reducing
emissions,
in
contrast
to
calls
for
a
collective
commitment
to
phase
out
all
fossil
fuels.

For
many
at
the
summit,
which
is
being
held
in
the
United
Arab
Emirates,
COP28
can
only
be
recognized
as
a
success
if
it
results
in
a
deal
to
“phase
out”
all
fossil
fuels,
whose
burning
is
the

chief
driver
of
the
climate
crisis.

The
language
of
the
final
agreement,
expected
by
or
around
the
Dec.
12
end
of
the
conference,
will
be
closely
monitored.
A
“phase
out”
commitment
would
likely
require
a
shift
away
from
fossil
fuels
until
their
use
is
eliminated,
while
a
“phase
down”
could
indicate
a
reduction
in
their
use
—
but
not
an
absolute
end.

There’s
also
an
ongoing
debate
about
whether
an
agreement
should
center
on
“abated”
fossil
fuels,
which
are
trapped
and
stocked
with
carbon
capture
and
storage
technologies,
or
“unabated”
fossil
fuels,
which

are
largely
understood
to
be
produced
and
used
without
substantial
reductions
in
the
amount
of
emitted
greenhouse
gases.

Asked
by
CNBC’s
Steve
Sedgwick
at
COP28
whether
it
would
be
the
wrong
scenario
for
countries
to
agree
to
the
phase
out
of
abated
fossil
fuels,
Woods
replied,
“I
think
what
society
ought
to
focus
on
is
the
true
problem
here,
which
is
emissions.”

“The
challenge
here
is
eliminating
emissions,”
he
continued.
“How
we
do
that
will
be
a
function
of
where
the
technology
goes,
and
what
the
circumstances
are,
and
where
those
emissions
are
being
emitted.”

In
a
speech
delivered
to
world
leaders
on
Friday,
U.N.
Secretary-General
António
Guterres
was
unequivocal
in
his
call
for
the
burning
of
fossil
fuels
to
be
stopped
outright,
in
order
to
prevent
the
worst
effects
of
the
climate
crisis.

“We
cannot
save
a
burning
planet
with
a
firehose
of
fossil
fuels,”
Guterres
said.
“The
1.5-degree
limit
is
only
possible
if
we
ultimately
stop
burning
all
fossil
fuels.
Not
reduce.
Not
abate.
Phaseout
—
with
a
clear
timeframe
aligned
with
1.5
degrees.”

Not
everyone
is
on
board
with
calls
to
phase
out
fossil
fuels,
however.
Russia
has
previously

said
it
would
oppose
this
language
being
used
in
the
final
agreement,
while
COP28
host
the
United
Arab
Emirates
has
instead

signaled
its
preference
for
a
“phase
down.”

“I
don’t
think
there
is
a
one-size
fits
all.
I
actually
think
that
part
of
the
thing
that
has
slowed
us
down
is
this
focus
on
making
a
step
change
and
getting
out
of
our
existing
energy
system
and
starting
something
brand
new.
That
is
going
to
be
a
long,
costly
process
that
is
going
to
be
very,
very
expensive,”
Exxon
Mobil’s
Woods
said.

“Instead,
what
we
ought
to
be
looking
at
is
how
do
we
get
from
where
we’re
at
today
to
a
future
with
lower
emissions,
and
that
involves
step
changes
in
some
areas.
It
certainly
involves
wind,
solar
and
[electric
vehicles],
but
it
also
involves
decarbonizing
what
we
currently
have.”

Woods
said
that
there
are
currently
options
to
start
reducing
the
carbon
intensity
of
existing
technologies
“at
a
much
lower
cost.”

“So,
stay
focused
on
the
problem
statement
of
emissions.
Keep
your
mind
open
to
a
variety
of
different
solutions
and
make
sure
that
the
work
that
everybody
is
putting
into
this
is
focused
on
the
areas
of
strength
that
we
can
make
the
most
reduction
the
quickest,”
he
added.

Big
Oil
executives
have
previously

sought
to
defend
their
core
business
model
from
climate
criticism,
saying
it
is
not
possible
to
keep
everyone
happy
during
the
transition
away
from
fossil
fuels.
Officials
of
large
oil
producing
nations,
including
of
the
UAE,
have
likewise
advocated
for
the
energy
security
and
affordability
of
using
fossil
fuels
while
transitioning
toward
the
exclusive
use
of
green
energy.

Tengku
Muhammad
Taufik,
president
and
group
CEO
of
Malaysia’s
state
energy
firm
Petronas,
said
in
early
October,
“So,
the
debate
has
always
been
posed
here,
I’m
reminded
of
an
old
saying:
‘If
you
want
to
keep
everyone
happy,
sell
ice
cream.’
We
are
not
in
the
business
of
ice
cream
—
and,
I’m
reminded,
there
are
people
who
are
lactose
intolerant.”

Exxon

announced
in
mid-October
that
it
had
agreed
to
buy
shale
rival

Pioneer
Natural
Resources
for
a
whopping
$59.5
billion
in
an
all-stock
deal.
The
agreement
was
Exxon’s
largest
buyout
since
acquiring
Mobil
nearly
25
years
ago
and
was
seen
to
leave
no
doubt
about
its
future
support
for
fossil
fuels.

Asked
about

criticism
the
U.S.
oil
giant
has
received
from
climate
campaigners
over
the
Pioneer
deal,
Woods
said,
“Well,
the
way
we’re
looking
at
this
is,
there
is
a
demand
for
oil
and
gas
today,
and
there
will
be
demand
for
oil
and
gas
going
forward
in
the
future.”

“What
exactly
that
level
is,
we
all
have
our
different
views
on,
but
as
long
as
there
is
demand
out
there,
I
think
what
society
wants
are
the
most
responsible
operators
meeting
that
demand.
And
what
we’re
committing
to
do
is
[to]
be
the
most
responsible
operator,”
he
added.

“We
will
basically
produce
more
oil
at
a
lower
cost,
more
efficiently
with
less
environmental
footprint.
That’s
a
win-win-win.
And
we’re
improving
U.S.
energy
security
so
there’s
a
lot
to
like
about
that
deal,”
Woods
said.