Exxon Mobil (NYSE:XOM), one of the world’s largest oil and gas companies, is reportedly considering joining the Oil & Gas Methane Partnership (OGMP), an initiative led by the United Nations. This move would require Exxon to disclose more details about its global methane production. While the company has previously resisted calls for outside reviews of its emissions reduction efforts, this potential shift highlights its willingness to address environmental concerns.
The OGMP, which currently consists of nearly 100 companies responsible for more than a third of the world’s oil and gas production, focuses on reducing methane emissions. By joining this partnership, Exxon would join other industry leaders such as ConocoPhillips, Occidental Petroleum, EOG Resources, BP, and Shell, who are already members.
The catalyst for Exxon’s interest in joining OGMP may be its recent $59.5 billion acquisition of Pioneer Natural Resources, which is already a member. This purchase perhaps provided Exxon with valuable insight into the benefits of participating in the partnership and could have influenced its decision to consider joining.
Earlier this year, a shareholder resolution was introduced that called on Exxon to join the OGMP in order to improve its emissions detection and reporting. Unfortunately, the resolution failed to pass, with only 36% of votes cast in favor. However, this renewed interest from the company itself in joining the initiative demonstrates its commitment to addressing environmental concerns and enhancing transparency.
If Exxon decides to join the OGMP, it would signal a notable change in its approach to emissions reduction, as it would be required to disclose more information about its methane production. This would not only benefit investors and stakeholders but also contribute to global efforts to combat climate change.