Chevron, Exxon Opt Out of Funding COP28 Methane-Cutting Fund
(Bloomberg) --
Six major oil companies each contributed tens of millions of dollars to a grant fund meant to help state-owned rivals cull the release of super-warming methane emissions, but Chevron Corp. and Exxon Mobil Corp. didn’t join in.
At issue is a Global Flaring and Methane Reduction Partnership that will be run by the World Bank with initially $255 million earmarked to help developing countries and their oil companies stifle leaks of that potent greenhouse gas. The program, unveiled at the COP28 climate summit in Dubai, is a recognition that while large oil companies in the US have spent years working to pare methane releases from wells, pipelines and processing equipment, many national oil companies are only getting started.
The initiative secured $25 million each from six oil companies: BP Plc, Eni SpA, Equinor ASA, Occidental Petroleum Corp., Shell Plc and TotalEnergies SE. Some countries also ponied up, with the United Arab Emirates that is hosting COP28 providing $100 million; the US, $2 million; Germany, $1.5 million; and Norway, $1 million.
Supporters of the initiative had hoped to raise a much higher sum by convincing large oil producers — after years plugging methane leaks — that unless national oil companies do the same, both the planet’s health and the industry’s reputation are imperiled, people familiar with the matter said.
Yet some oil giants were reluctant to underwrite a fund seen as effectively providing cash donations to global competitors, one of the people said.
Chevron supports the aims of the initiative but is currently “focused on funding methane reductions in our own portfolio as part of our $2 billion in funding of lower-carbon abatement projects,” the company said in a statement. The California-based producer also was a notable absence from a 50-member Oil and Gas Decarbonization Charter announced Saturday, with enrolled companies pledging to cut methane emissions to near zero and halt flaring of natural gas by the end of the decade.
“We don’t take joining global initiatives like this lightly and require more clarity on the framework and path forward,” Chevron said in a statement.
Exxon joined that pledge but so far has not provided money to the World Bank grant fund. However, it could provide technical support and methane-abatement training as part of the initiative.
“We support the goal of the Global Methane Reduction Fund and are in negotiations to provide our technical skills, scale and years of methane detection and mitigation experience to reduce emissions,” the company said in an emailed statement.
To access funding from the program, companies will need to commit to cutting methane intensity by below 0.2%, halting routine flaring of natural gas by 2030 and measuring and reporting emissions.
(Updates with Chevron statements from sixth paragraph.)
©2023 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More oil news
![BloomburgMedia_SFX15PDWLU6800_01-07-2024_08-58-33_638553888000000000.jpg](/media/u0geqquv/bloomburgmedia_sfx15pdwlu6800_01-07-2024_08-58-33_638553888000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133642979132800000&format=webp)
Oil Gains With Focus on China’s Economy and Geopolitical Risks
Jul 01, 2024![BloomburgMedia_SFWNTDDWRGG000_01-07-2024_09-00-46_638553888000000000.jpg](/media/xbzlg5gk/bloomburgmedia_sfwntddwrgg000_01-07-2024_09-00-46_638553888000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133642980469800000&format=webp)
Saudi Reserves Jump to 18-Month High Thanks to Aramco Dividends
Jul 01, 2024![BloomburgMedia_SFUQSRDWRGG000_30-06-2024_06-00-10_638553024000000000.jpg](/media/zdchwcsk/bloomburgmedia_sfuqsrdwrgg000_30-06-2024_06-00-10_638553024000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133642008106230000&format=webp)
Citgo Auction Planner Asks Delay of Sale Hearing Until September
Jun 29, 2024![BloomburgMedia_SFQDEFT1UM0W00_28-06-2024_07-22-19_638551296000000000.jpg](/media/wuyj2iv5/bloomburgmedia_sfqdeft1um0w00_28-06-2024_07-22-19_638551296000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133640329392130000&format=webp)
Oil Stuck in Tightest Trading Range Since 2021 Ahead of US Data
Jun 28, 2024![BloomburgMedia_SFOGH2T1UM0W00_27-06-2024_06-11-53_638550432000000000.jpg](/media/ostdbiro/bloomburgmedia_sfogh2t1um0w00_27-06-2024_06-11-53_638550432000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133639423131800000&format=webp)
Oil Stuck in Narrow Range Ahead of Key US Economic Figures
Jun 27, 2024![Oil Rig (2)](/media/cyvbjs40/oil-rig.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132938805898570000&format=webp)
Lamprell delivers second jackup rig for Saudi market
Jun 27, 2024![Totalenergies](/media/41ojyade/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132881916816700000&format=webp)
TotalEnergies to sell UK West of Shetland assets to the Prax Group
Jun 27, 2024![BloomburgMedia_SFMMAXT0AFB400_26-06-2024_06-00-10_638549568000000000.jpg](/media/00rfanvg/bloomburgmedia_sfmmaxt0afb400_26-06-2024_06-00-10_638549568000000000.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133638552104000000&format=webp)
Oil Steadies as Industry Report Points to Rising US Stockpiles
Jun 26, 2024![Zephyr](/media/metnmkpp/zephyr.jpg?anchor=center&mode=crop&width=240&height=135&rnd=133638742860270000&format=webp)
Zephyr Energy advances State 36-2R well testing and secures new financing
Jun 26, 2024![Totalenergies (3)](/media/2cjewaqv/totalenergies.jpg?anchor=center&mode=crop&width=240&height=135&rnd=132844703590900000&format=webp)
TotalEnergies secures majority stake in offshore block in the coast of São Tomé and Príncipe
Jun 26, 2024![Setting the pace in decarbonising steel production-1863174552](/media/2iol3l0c/setting-the-pace-in-decarbonising-steel-production-1863174552.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133618761586730000&format=webp)
Setting the pace in decarbonising steel production
Jun 03, 2024![BCG on making energy demand more efficient and sustainable-1863225347](/media/ogfnknhe/bcg-on-making-energy-demand-more-efficient-and-sustainable-1863225347.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133618869575430000&format=webp)
BCG on making energy demand more efficient and sustainable
Jun 03, 2024![OPEC's output cut extension: analysing the global impact-1863248865](/media/5ybfzlqp/opec-s-output-cut-extension-analysing-the-global-impact-1863248865.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133618869567770000&format=webp)
OPEC's output cut extension: analysing the global impact
Jun 03, 2024![Navigating the trading seas: exploring the significance of benchmarks-1859882229](/media/qlacaiww/navigating-the-trading-seas-exploring-the-significance-of-benchmarks-1859882229.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133613577584600000&format=webp)
Navigating the trading seas: exploring the significance of benchmarks
May 27, 2024![Driving sustainability: the power of energy policies-1857914550](/media/0v0blfir/driving-sustainability-the-power-of-energy-policies-1857914550.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133610085546170000&format=webp)
Driving sustainability: the power of energy policies
May 23, 2024![Dr Carole Nakhle Thumbnail](/media/gqrpjths/dr-carole-nakhle_thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133542056370600000&format=webp)
More women in energy vital to the industry’s success
Mar 06, 2024![Vandana Hari Thumbnail](/media/gz3dyktl/vandana-hari-thumbnail.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133511540022930000&format=webp)
India’s energy sector presents lucrative opportunities for global companies
Jan 31, 2024![OIL INDIA Thumbnail (1)](/media/oddlww2x/oil-india-thumbnail-1.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133506537128730000&format=webp)
Oil India charts the course to ambitious energy growth
Jan 25, 2024![DNV Thumbnail](/media/chkphnjn/dnv-thumbnail.png?anchor=center&mode=crop&width=540&height=300&rnd=133491856590700000&format=webp)
Maritime sector is stepping up to the challenges of decarbonisation
Jan 08, 2024![BCG FERDINAND Thumbnail 01](/media/mhngslc2/bcg_ferdinand_thumbnail-01.png?anchor=center&mode=crop&width=540&height=300&rnd=133464907617530000&format=webp)
COP28: turning transition challenges into clean energy opportunities
Dec 08, 2023Partner content
![Dr Klaus](/media/4eyh2dr0/dr-klaus.jpg?center=0.3953747239980292,0.50683017007953435&mode=crop&width=540&height=300&rnd=133517897092430000&format=webp)
Ebara Elliott Energy offers a range of products for a sustainable energy economy
![ESSAR](/media/5uafghtj/essar.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524466961070000&format=webp)
Essar outlines how its CBM contribution is bolstering for India’s energy landscape
![HNC 7611 V2](/media/0dqbya15/hnc_7611_v2.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133517899616530000&format=webp)
Positioning petrochemicals market in the emerging circular economy
![Spectrum](/media/esvgoqpk/spectrum.jpg?anchor=center&mode=crop&width=540&height=300&rnd=133524457491730000&format=webp)
Navigating markets and creating significant regional opportunities with Spectrum
![HEXAGON JOSEPH](/media/ybvjzlwk/hexagon-joseph.png?anchor=center&mode=crop&width=540&height=300&rnd=133473727370670000&format=webp)