Exxon Mobil CEO pushes back against ending fossil fuel use

According to Exxon Mobil CEO Darren Woods, countries should focus on reducing emissions. With this statement, he pushed back at the COP28 climate summit against a collective commitment to phase out the use of fossil fuels. Similar remarks have also come from senior political figures leading the summit. UN representatives, by contrast, are firmly in favour of ending the use of fossil fuels.  

Around 50 oil companies pledged to eliminate methane emissions by 2030 at the UN climate change conference (COP28) in Dubai. In the view of many participants, the COP28 summit can be considered a success only if it results in a final agreement to phase out all fossil fuels. Burning them is the main cause of the climate crisis.

Participants, however, are not in agreement. The main dispute is whether fossil fuel consumption should be gradually reduced or brought to a definitive end. A commitment to a "phase-out" would probably require moving away from fossil fuels until they are completely eliminated.  A commitment to a "phase-down," by contrast, could mean merely reducing their use, rather than ending it altogether. The wording of the final agreement will probably be known by mid-December at the latest.

Not everyone agrees with phasing out fossil fuels

Not everyone, however, shares the same view on ending the use of fossil fuels. Asked by CNBC's Steve Sedgwick at the COP28 conference whether it would be a bad outcome if countries agreed to phase out the use of fossil fuels, Woods replied: "I think society should focus on the real problem, which is emissions."

"I don't think there's a one-size-fits-all solution. In fact, I think part of what is slowing us down is the focus on making a major change, moving away from the existing energy system and starting something completely new. That will be a long and costly process, and a very, very expensive one," said Woods of Exxon Mobil.

Woods said there are currently ways to start reducing the carbon intensity of existing technologies at a lower cost.

"Instead, we should look at how to get from where we are today to a lower-emissions future, which involves gradual changes in some areas. That certainly includes wind and solar power and electric vehicles, but also decarbonising what we have today," Woods added.

COP28 President Sultan Al Jaber took a similar position. According to the British newspaper The Guardian and the Centre for Climate Reporting, he said that "no science" suggests that phasing out fossil fuels is necessary to limit global warming to 1.5°C.

The UN and scientists disagree

Scientists have described these comments as "incredibly concerning" and "bordering on climate denial." They also ran counter to the position of UN Secretary-General António Guterres. In a speech to world leaders on Friday, he unequivocally called for the complete cessation of fossil fuel use.

"We cannot save a burning planet with fossil fuels," Guterres said. "The 1.5-degree limit is possible only if we eventually stop burning all fossil fuels. Not reduce them. Not mitigate them. Phase them out – with a clear timeframe aligned with 1.5 degrees."

Exxon Mobil has long believed fossil fuels are important

Executives at major oil companies have previously sought to defend their core business model against climate criticism. In the past, they have argued that it is impossible for everyone to be satisfied during the transition away from fossil fuels.

Exxon Mobil has long been one of the most prominent proponents of this approach. In mid-October, it announced an agreement to buy shale rival Pioneer Natural Resources for a staggering $59.5 billion. The deal was Exxon’s largest acquisition since it took over Mobil nearly 25 years ago. Many point to the deal as evidence that the company is leaving no doubt about its continued support for fossil fuels.