HOUSTON â Darren W. Woods rarely makes headlines even though he is the chief executive of Exxon Mobil, the oil company that some people consider a top environmental villain and others think of as a vital engine of the U.S. economy.
Few have taken seriously, or even noticed, that he is beginning to make promises to respond to climate change, which is at the very least a rhetorical break from his predecessors if not a substantive one.
âWhat society demands, and appropriately so, is affordable, reliable energy that doesnât have the emissions associated with todayâs energy systems,â he said on Tuesday. âWeâre working on that evolution.â
While that might seem like a guarded statement, Mr. Woods, a soft-spoken electrical engineer from Wichita, Kan., is clearly changing the tone of the company, which he took over four years ago. The Texas swagger employed by his predecessors, one of whom openly dismissed concerns about climate change, has turned into something vaguely philosophical.
In an interview meant to be a curtain raiser to an annual presentation by executives to financial analysts and investors on Wednesday, Mr. Woods, 56, waxed poetic about the history of technology and the energy industry and even suggested there was common ground between his plans to reduce emissions and President Bidenâs efforts to fight climate change. He went so far as to promise that Exxon would try to set a goal for not emitting more greenhouse gases than it removed from the atmosphere, though he said it was still difficult to say when that might happen.
âWe are supportive of that ambition, and our goal is to help society to achieve it,â Mr. Woods said. âFrankly, the recognition of the challenge is continuing to grow. Itâs an evolving conversation that I find very helpful to think through what needs to happen.â
Under pressure from activist investors, Exxon said this week that it was adding two new directors with no previous ties to fossil fuels to its board. The company recently said it would create a new business that captured carbon dioxide from industrial plants and buried it deep in the ground. It also recently invested in Global Thermostat, a company that aims to suck carbon dioxide out of the air.
On Wednesday, Mr. Woods told investors that Exxon was well positioned âto capitalize on the growing demand for decarbonization and market opportunities that are increasingly coming together to support lower-carbon energy solutions.â
Of course, many people are deeply skeptical about the companyâs plans and motives. Unlike executives of European oil companies, Mr. Woods is not cutting investments in oil and gas in favor of spending money on wind and solar power. He steered clear of commenting on BPâs pledge last year to cut its net emissions to zero by 2050.
âUnlike their big oil competitors that have begun taking action on climate change, Woods and Exxon Mobil continue to live in a fairy-tale world of inaction while California burns and Texas freezes,â said Peter Krull, chief executive of Earth Equity Advisors, an investment firm specializing in sustainability.
After spending nearly three decades with a company long known for its insularity, rigid culture and public indifference to global warming, Mr. Woods suggested that he was ready to steer it onto a different course, albeit gradually.
With Exxonâs stock price still lower than it was a decade ago, many investors have demanded no less.
âMy interaction with investors is a reflection of what I would say are the broader trends of society,â Mr. Woods said.
Mr. Woodsâs four years as chief executive have spanned a rocky time for the industry. Oil and gas prices have bounced up and down several times in recent years. And last year, demand for petroleum products collapsed as the coronavirus pandemic took hold. Exxon lost $22.4 billion in 2020, much of it from write-downs of assets the company acquired at rich prices before Mr. Woods took over.
But in recent weeks, oil and gas prices have recovered â with the American benchmark climbing above $60 a barrel from about $50 at the end of last year â and Exxon and its stock are doing better. Mr. Woods said revenues were flowing again, allowing the company to reduce debt and pay for future projects. The companyâs dividend, which it had raised every year for nearly four decades, now appears to be safe from being cut.
What Exxon isnât doing is spending much of its fortune on businesses or ideas designed to sharply reduce emissions. It is spending just $3 billion through 2025 on capturing carbon from industrial plants â a small fraction of the $16 billion to $19 billion it plans to spend on oil exploration and capital projects this year.
Mr. Woods said he would seek more change through researching breakthrough technologies. But many of them remain years or decades away from having a big impact on emissions.
âUntil we know the path and what is going to be required and what the solutions are, itâs hard to know,â he said. âWhat we can do is commit to figure that out, and once we find the answers you would see us begin to commit and actually be on the path toward net zero.â
While Exxon is investing in energy efficiency projects, biofuels and hydrogen, Mr. Woods expressed particular enthusiasm for his companyâs 20 carbon capture and storage projects. While the technology has yet to become widely deployed because it is very expensive, Mr. Woods and Exxon scientists argue that it could play an important role in reducing emissions from cement and steel manufacturing and other industrial processes that cannot easily run on renewable energy.
âCarbon capture and storage is going to be needed,â he said.
He even suggested that âthere is certainly the potentialâ that Exxonâs carbon capture and storage program could fit neatly with Mr. Bidenâs policies and goals.
âPolicy support and the right regulatory framework to support these investments are needed and are going to be important,â Mr. Woods said. âWe want to engage with them in that conversation. You are going to need permitting for investments. You are going to need pipeline systems, legislation, and regulatory reform and legal frameworks for storing CO2.â
Mr. Biden has expressed support for carbon capture and sequestration. It is one environmental policy that could gain the backing of congressional Republicans, although many liberal Democrats are not keen on it because they see it as prolonging the use of fossil fuels.
Many climate scientists are deeply skeptical that the technology can be deployed at the scale needed to make a big dent in emissions. Some energy executives share that skepticism.
Charif Souki, the executive chairman of Tellurian, a liquefied natural gas company, said carbon capture was one of many potentially promising technologies to combat climate change. But he added, âThere is no efficient way to do it on the scale that is necessary to accommodate what we need to do.â
But Mr. Woods said he was optimistic about the path Exxon had chosen. âItâs very difficult to predict when a breakthrough is going to occur,â he said, âbut if you look back in time, they happen consistently.â
Originally posted on https://www.nytimes.com/2021/03/03/business/energy-environment/exxon-mobil-darren-woods.html