In an interview with CNBC’s David Faber, the chief of one of many largest oil and fuel corporations on the planet mentioned direct air seize, or the method of pulling carbon from the ambiance, is in his thoughts “the holy grail.” He continued, “should you can overcome a few of these expertise hurdles, get your price down, you have acquired a expertise then that may deal with this in a very cost-efficient manner.” The firm estimates the market to seize and retailer carbon dioxide will likely be price $4 trillion by 2050.
There is a present price on carbon dioxide sequestration listed within the IRS tax code and referred to as the 45Q tax credit score, nevertheless it tops out at $50 per ton captured and saved. Exxon Mobil would favor a price of at the least $100 per ton.
Woods acknowledged a higher carbon price might be a troublesome political accomplishment and steered insurance policies centered on particular market sectors might be a good begin.
Proposing a carbon tax has been a level of controversy for Exxon Mobil. Keith McCoy, a former Exxon lobbyist, was as soon as caught on digicam saying that he didn’t consider a carbon tax was going to occur, however that it “offers us a speaking level that we are able to say, ‘effectively what’s Exxon Mobil for? Well, we’re for a carbon tax.'” After the tape was launched, Exxon mentioned McCoy not labored for the corporate and disavowed his statements.
When CNBC’s Faber requested Woods if he thought carbon seize might be a key revenue generator in 25 years, he mentioned it might be. He was inspired by the clear vitality dialog increasing past wind and photo voltaic and sees progress potential for Exxon Mobil sooner or later.
McCoy didn’t reply to CNBC’s request for remark.
Watch the total interview within the video above and see the total documentary, “Exxon Mobil on the Crossroads,” on YouTube, Peacock and CNBC.com.
Kathy Liu contributed to this report.