ExxonMobil Pushes for Privacy on Offshore CO2 Storage Lease Details
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Exxon Mobil Corporation XOM has asked the Texas General Land Office (“GLO”) to withhold the terms of its offshore lease agreement for a significant carbon sequestration project in Texas. In a letter dated Jan. 13, ExxonMobil urged the Attorney General of Texas to instruct the GLO to keep the details private, citing the inclusion of proprietary and confidential commercial and financial information under the Texas Public Information Act.The lease, which ExxonMobil secured in October, covers more than 271,000 acres in Texas state waters for an offshore carbon dioxide (CO2) capture operation. ExxonMobil describes this project as the "largest offshore carbon-dioxide storage lease in the United States," and it is a crucial part of the company’s broader carbon sequestration strategy.ExxonMobil argued that publicly disclosing specific terms such as dollar amounts and lease lengths could allow competitors to gain insight into its broader strategies and rate structures for its CO2 transportation and storage business. The company emphasized that these details are critical to maintaining its competitive edge in the emerging market for carbon capture, a technology that has gained significant interest from oil and gas companies like Chevron, Occidental Petroleum and TotalEnergies as a tool for reducing carbon emissions and combating climate change.This move follows ExxonMobil’s aggressive pursuit of opportunities in carbon capture, beginning with its 2021 bid for federal land off the Texas coast for CO2 storage and its subsequent success in securing 69 blocks in the U.S. Gulf of Mexico in 2023. The project marks a pivotal step in ExxonMobil’s efforts to expand its carbon storage capabilities, which are essential to meeting the global emission reduction goals.As the industry increasingly focuses on carbon capture to mitigate climate change, ExxonMobil's actions reflect the high stakes and competitive dynamics in this sector. With growing demand for sustainable energy solutions, ExxonMobil’s strategy is seen as a critical component of its long-term plans in the energy transition.XOM’s Zacks Rank & Key PicksExxonMobil currently carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and TechnipFMC plc FTI. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, TechnipFMCcarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report SM Energy Company (SM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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