ExxonMobil is on track to outpace European oil giants Shell and BP in planned spending on low-emission energy, signaling a shift in the global energy landscape.
The U.S. supermajor announced it will invest up to $30 billion in low-carbon projects between 2025 and 2030. Nearly 65% of that will focus on helping third-party customers cut emissions. This move would make Exxon the leader in low-emission investments among traditional oil majors, according to data from energy consultancy Wood Mackenzie.
Exxon’s Low Carbon Solutions division focuses on carbon capture, hydrogen, and lithium—areas the company believes match its core strengths. The new investment push follows the passage of the 2022 Inflation Reduction Act (IRA), which offers financial incentives for clean energy technologies. Exxon’s strategy assumes the IRA’s key provisions remain intact, despite potential changes under future U.S. administrations.
While Exxon raises its climate-related investments, European counterparts are scaling back. BP recently increased oil and gas investments to $10 billion per year while slashing clean energy spending by over $5 billion. Shell’s CEO Wael Sawan said the company would now limit capital in low-carbon businesses to under 10% of its total, focusing instead on profitability. Equinor also plans to cut renewable investments by nearly half due to poor returns and market uncertainty.
Despite stepping back, European firms still allocate more of their total capital to low-carbon energy compared to Exxon. France’s TotalEnergies leads in this category, directing 29% of its capital spending to low-carbon projects. Shell and Exxon each plan around 17%, while BP’s new strategy targets just 12%.
Industry leaders point to inflation, high interest rates, supply chain challenges, and unclear regulations as reasons for the slower energy transition. However, Exxon’s commitment—driven largely by U.S. policy support—shows a new competitive edge emerging in the low-carbon race.
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