November 29, 2018 Read More →

Exxon to buy 500MW of solar, wind to power Texas oil production

Bloomberg:

Exxon Mobil Corp. will use renewable energy to produce oil in West Texas.

Under 12-year agreements with Denmark’s Ørsted A/S, Exxon will buy 500 megawatts of wind and solar power in the Permian Basin, the fastest growing U.S. oil field. It is the largest ever renewable power contract signed by an oil company, according to Bloomberg NEF. Terms weren’t disclosed.

Exxon, which was sued by investors who alleged the company downplayed risks of global warming, is turning to clean energy as it becomes cheap enough to compete with fossil fuels. The wind and solar farms are being built in a region where electricity demand is soaring as oil production grows.

“We frequently evaluate opportunities to diversify our power supply and ensure competitive costs,” Julie King, a spokeswoman for the Irving, Texas-based oil producer, said in an email. The company denies misleading investors about climate change.

Booming production in the Permian Basin is helping Exxon offset declining output elsewhere in the world. But output in the region has grown so fast that infrastructure including pipelines and power plants have struggled to keep up.

Half the power Exxon will buy will come from the Sage Draw wind farm, which Ørsted plans to finish building in 2020, according to a slide from an investor presentation Wednesday. The rest will be from the Permian Solar farm, scheduled to be finished in 2021.

More: Exxon will use wind, solar power to produce crude oil in Texas

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