Exxon Mobil (XOM) Barclays 38th Annual CEO Energy-Power Conference summary

Strategic vision and investment

• Aims to accelerate global net zero through large-scale decarbonization, focusing on heavy industry and building a new business line.

• Allocated $20 billion in capital through 2027, split between internal decarbonization and third-party solutions.

• Targets mid-teens returns on investments, emphasizing projects where unique advantages yield strong returns.

• Focuses on molecule-based solutions: carbon capture and storage (CCS), hydrogen, lithium extraction, and renewable fuels.

• Investment decisions are disciplined, with capital deployment based on project readiness and market opportunity.

Project updates and milestones

• Completed lithium appraisal drilling in Arkansas, confirming attractive resources; next steps focus on cost competitiveness.

• Strathcona, Canada, renewable diesel project (20,000 barrels/day) is on track for startup next year.

• CCS activity centers on the US Gulf Coast, leveraging a 1,500-mile CO₂ pipeline network acquired via Denbury.

• Four definitive CCS offtake agreements signed, covering 5.5 million tons/year of CO₂, with first project startup expected in early 2025 pending permit.

• Baytown, Texas, hydrogen plant to be the world’s largest low-carbon facility, targeting FID in 2025 and startup in 2029.

Market development and policy

• Current projects operate within today’s policy and technology, focusing on building new value chains and markets.

• Future growth depends on broader, market-forming policy for carbon abatement and further cost reductions.

• Envisions a transition to market-driven carbon abatement, leveraging technology and existing infrastructure for cost effectiveness.

• Policy clarity, especially around 45Q and 45V, is critical for final investment decisions and scaling projects.