Exxon Will Pollute as Much as Greece!
Internal documents from Exxon revealed the energy giant is pursuing plans to expand its fossil fuel production. This is a different course from competitors like Shell and BP which have announced plans to curb oil production and lower global emissions.
The forecast from within the company shows that its internal activities alone will increase emissions 17% by 2025. This does not account for pollution that occurs when others use Exxon products. The annual carbon footprint of the company will be about equal to that of Greece. This huge increase in pollution will come about due to a $210 billion investment strategy aimed in large part at expanding crude oil production.
The documents will put the company under the microscope of many groups around the world working to tackle climate change. It will be interesting to watch how the world responds to Exxon’s growth plans while some of its competitors are shifting focus to alternative forms of energy. The company has previously faced criticism for not committing to lower its carbon footprint and for not setting a goal date to become carbon neutral.
How will markets respond to the news? It could go either way. Investors might feel good about Exxon’s future in the industry as other corporations focus on different energy forms. The ambitious growth strategy could be very effective for the balance sheet if well executed. However, the future of fossil fuels is incredibly uncertain. More governments are working on plans to combat climate change, and many activist groups will likely target Exxon if the company does commit to a more environmentally conscious business plan.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.