Houston – Exxon Mobil Corp (XOM.N) issued a sobering projection on Monday, revealing that oil and natural gas are anticipated to satisfy 54% of the world’s energy demands in 2050. This stark revelation comes in tandem with the world’s apparent inability to curb global temperature escalation below the critical 2 degrees Celsius threshold.
The largest U.S. oil producer laid out a disconcerting forecast that the globe will reach an alarming 25 billion metric tons of energy-related carbon dioxide (CO2) emissions by 2050, according to its recently published energy outlook.
Strikingly, this projected level of emissions is more than twice the 11 billion metric tons deemed acceptable by the United Nations Intergovernmental Panel on Climate Change (IPCC) for their Lower 2°C scenarios.
Exxon underscored, “An energy transition is underway, but it is not yet happening at the scale or on the timetable required to achieve society’s net-zero ambitions.” This statement reinforces the contention that the world’s strides toward net-zero emissions are faltering, with grave consequences for environmental preservation.
The International Energy Agency (IEA) has been vocal about redirecting substantial resources towards clean energy technologies since 2021, aiming to steer the world toward net-zero emissions by 2050. Nonetheless, Exxon’s evaluation paints a grim picture, indicating that only two of the 55 crucial technologies required for this objective are “on track.”
Exxon’s projection envisages a peak in energy-related CO2 emissions surpassing 34 billion metric tons during the current decade, as global economies burgeon, and energy demand continues to escalate. Subsequently, this figure is expected to diminish to 25 billion metric tons by 2050, though still exceeding desired emission reduction benchmarks.
In a concerted effort to address these imminent challenges, Exxon has committed a formidable $17 billion over a span of six years through 2027, towards the development of lower carbon emissions technologies such as carbon capture and sequestration, along with hydrogen utilization. These pioneering technologies, though not yet commercially viable, offer a glimmer of hope for reducing emissions in hard-to-decarbonize sectors, aligning with the IPCC’s Lower 2°C scenarios.
Exxon’s strategic approach focuses heavily on reducing carbon emissions from both its operations and third-party entities. Remarkably, the company diverges from its European counterparts by eschewing consolidated renewable sources such as wind and solar power. Their forecast anticipates wind and solar contributing a mere 11% of the world’s energy supply in 2050, a modest amplification from today’s levels.
This sobering projection underscores the monumental challenges faced by global energy stakeholders, necessitating prompt and profound shifts towards sustainable energy paradigms.
With contributions from reuters
