ExxonMobil doesn’t see world reaching net-zero by 2050
Published on: Sep 5, 2023
The Global Outlook is ExxonMobil’s latest view of energy demand and supply through 2050.
ExxonMobil firmly believes the world will need its oil for a long time, according to its new Global Outlook. The company doesn't think the global economy will reach its target of achieving net-zero emissions by 2050 by pivoting to lower-carbon sources like renewable energy.
Raising living standards in the developing world will push a 15% increase in global energy demand by 2050, according to the report.
The Global Outlook projects that the biggest change in the world’s energy mix between now and 2050 will be a significant increase in solar and wind, along with a significant reduction in coal. Overall, electricity use grows 80% by 2050.
“Oil and natural gas are projected to still make up more than half of the world’s energy supply. The utility of oil and natural gas in meeting the world’s needs remains unmatched,” says the report.
Oil use is expected to decline significantly in personal transportation but will remain essential for the industrial processes and heavy-duty transport like shipping, long-haul trucking, and aviation that underpin economic growth.
The report states that every new passenger car sold in the world in 2035 were an electric vehicle, oil demand in 2050 would still be 85 million barrels per day, the same as it was around 2010.
By 2030, ExxonMobil aims to reduce its greenhouse gas emissions by 40%-50% from 2016. In addition, the company plans to grow its biofuels and hydrogen production. Finally, Exxon is building out carbon capture and sequestration (CCS) capabilities.
