Exxon Mobil Corporation (XOM)

[DiscoverGold]

ExxonMobil Secures Largest U.S. Offshore CO2 Storage Site
By: Zacks Investment Research | October 14, 2024

Exxon Mobil Corporation XOM has secured the largest offshore carbon dioxide (CO2) storage lease in the United States with the Texas General Land Office, marking a significant step in carbon capture and storage (CCS). The site covers more than 271,000 acres in Texas state waters, solidifying ExxonMobil’s leadership in the CCS industry.

XOM Expands CO2 Storage in the U.S. Gulf Coast

This new offshore site complements ExxonMobil’s existing onshore CO2 storage portfolio and boosts the U.S. Gulf Coast’s status as a global hub for carbon capture. The company is already operating the largest CO2 pipeline network in the United States, positioning it to offer a full-service solution for carbon capture, transport and storage.

Dan Ammann, president of ExxonMobil Low Carbon Solutions, noted that with a growing base of customers ready to implement CCS, ExxonMobil is positioned to drive significant emission reductions along the Gulf Coast. The company’s comprehensive approach, which includes capture, transportation and storage, reinforces its leadership in the industry.

XOM’s Lease Benefits Texas Education

The agreement's terms will directly support the Texas Permanent School Fund, contributing to the state’s education system. Texas Land Commissioner Dawn Buckingham expressed enthusiasm about the partnership, emphasizing its benefits of supporting educational funding and advancing energy solutions. She pointed out that the revenues from the lease will directly benefit the state and Texas schoolchildren.

XOM’s Role in Net-Zero Goals

ExxonMobil’s new offshore acreage provides crucial space for storing CO2 emissions, helping society work toward achieving net-zero goals. The Gulf of Mexico, with its vast potential for storage, is a key player in this effort, and ExxonMobil is well-positioned to leverage its infrastructure to support carbon reduction strategies on a large scale.

With this lease, XOM continues advancing its vision of a low-carbon future while significantly contributing to the local community and education system.

XOM’s Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Read Full Story »»»

DiscoverGold