Exxon in talks to join UN-led methane reporting pact -sources


Thu, October 19, 2023 
By Sarah McFarlane, Sabrina Valle and Valerie Volcovici

Oct 19 (Reuters) - Exxon Mobil is considering joining a U.N.-led initiative that would require disclosing more details of its global methane output, two people familiar with the matter told Reuters, a decision one said was inspired by its deal for U.S. shale giant Pioneer Natural Resources.

If it joins, it would mark a shift for a company that has resisted calls for outside reviews of its efforts to reduce greenhouse gas emissions.

The largest U.S. oil producer is in discussions to join the Oil & Gas Methane Partnership (OGMP), an initiative coordinated by the U.N. and comprising nearly 100 companies that pump more than one-third of global oil and gas, the people said.

OGMP members report their methane emissions using a standardized, measurement-based methodology designed to boost transparency and encourage companies to fix leaks or otherwise cut output of the powerful greenhouse gas.

The sources could not to be named because they were not authorized to speak publicly on the matter.

Exxon declined to comment.

Exxon's consideration of the pact follows its $59.5 billion purchase of Pioneer, already an OGMP member. That acquisition would make Exxon the biggest producer in the largest U.S. oil field, the Permian Basin, site of dozens of methane "super emitter" events.

One of the sources told Reuters Exxon felt it needed to join the OGMP because of the Pioneer deal.

The second person confirmed Exxon has entered discussions to join OGMP, but did not disclose more details.

Certain shareholders had been pressuring Exxon to strengthen its methane detection and reporting policies due to concerns it is underestimating emissions or missing sizeable leaks.

Both Exxon and No. 2 U.S. producer Chevron Corp are part of the Oil and Gas Climate Initiative (OGCI), a consortium of oil companies with self-imposed emissions targets and no standardized monitoring.

A shareholder resolution introduced this year called on Exxon to join the OGMP to improve its emissions detection and reporting, but failed to pass with just 36% of votes cast.

Exxon rivals' ConocoPhillips, Occidental Petroleum , EOG Resources, and Devon Energy are among OGMP's members, as are European majors Shell and BP.

"Exxon and Chevron are laggards here. We tell them this every chance we get," said Mark Brownstein, senior vice president for energy at the Environmental Defense Fund, a partner in OGMP.

Jonathan Banks, global director of methane at the Clean Air Task Force, another OGMP partner, said by joining OGMP, Exxon can address lapses in its methane reporting around the world.

"It is a huge step forward," he said. (Reporting by Valerie Volcovici in Washington; Editing by Josie Kao)