3 Energy Companies Set to Win the Race to Net-Zero Emissions

Although fossil fuels are the prime sources of global energy, economies across the world are steadily transitioning to clean energy. Oil and gas companies continue to progress toward a low-carbon future, as there has been constant pressure to curb climate change.

Several companies are readily modifying businesses to incorporate renewables in their operations. This year has been a game-changer as major oil producers convinced investors with their proposals to lower carbon emissions. Although renewable energy can satisfy the global energy demand, it will not eliminate oil and natural gas demand. Hydrocarbon demand will increase at a slower rate.

Per the U.S. Energy Information Administration, renewable consumption will grow through 2050 at an accelerating pace. Over the same period, the demand for oil and natural gas will grow, but at a slower pace. Renewables are expected to account for  95% of the increase in global power capacity through 2026.

As the focus on energy transition accelerates, let’s look at some of the energy companies outlining net-zero commitments by 2050. Three integrated energy companies are Exxon Mobil Corporation XOM, TotalEnergies SE TTE and Equinor ASA EQNR.

ExxonMobil is making efforts to create more-efficient fuels while reducing emissions. XOM plans to reduce greenhouse gas emissions by 40-50% by 2030 from its upstream business. The aggressive plan will be followed by the reduction in methane intensity and flaring intensity by 70-80% and 60-70%, respectively.

ExxonMobil plans to invest more than $15 billion over the next six years on projects associated with reducing emissions. XOM is committed to helping customers reduce emissions by investing in carbon capture and storage, hydrogen, and biofuels.

TotalEnergies aims to achieve net-zero emissions by 2050 and is taking the necessary measures to attain the same. TTE plans to expand the clean energy business to reach 35 gigawatts (GW) and 100 GW of gross production capacity from renewable sources by 2025 and 2030, respectively.

TotalEnergies is building a portfolio of low-carbon businesses, which could account for 15-20% of sales by 2040. In the near term, TTE plans to have more than 16 GW of renewable gross capacity in operation by the end of 2022.

Equinor’s key strategy is to capitalize on the renewable energy space and align operations with the Paris Climate Agreement. To capitalize on the rising clean energy demand, EQNR is actively investing in renewable energy projects, comprising power generation from solar and wind energy.

Equinor expects to boost production capacities from renewables to 4-6 GW by 2026. By 2035, it plans to boost the capacity to 12-16 GW. In 2021, Equinor recorded capital gains of $1.4 billion from renewables.

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