Thursday, October, 21, 2021 01:49:57

The leading Texas-based multinational oil and gas corporation, Exxon Mobil Corporation , has made it to the cover page for signing a renewable power contract, in a bid to produce oil in the Permian Basin situated in Western Texas, North America.

Reportedly, the pact has been signed under a 12-year deal between Exxon Mobil and Orsted A/S, the largest power company in Denmark. Under the agreement, Exxon will buy 500 MW of solar and wind power in the fastest-growing oil field Permian Basin. As reported by Bloomberg, this is the largest renewable power contract ever to be signed by a company like Exxon.

Exxon is gradually shifting toward clean energy adoption as it is now cheap enough to use against fossil fuels, cite sources familiar with the matter. Exxon, for those uninitiated, was earlier sued by investors under the allegation of downplaying risks of global warming.

Kyle Harrison, an analyst at BNEF, was reported saying that it would be interesting to note the response of other oil majors, as this deal has been an unprecedented historical buyout.

According to credible reports, the American oil & gas corp., is being majorly helped by Permian Basin’s booming production to offset the falling levels of output in other parts of the world. Sources further reveal that the output in the region has grown so incredibly fast that the infrastructure including power plants and pipelines have struggled to keep up with the pace.

For the record, the Delaware Basin, an area in the Permian, consumed 350 MW during summer which is enough to power around 280,000 homes in the US. The demand is likely to multiply largely, say providers.

It has been reported that Orsted plans to complete building the wind farm Sage Draw by the end of 2020, which would supply half of the power Exxon. The rest would be acquired from the Permian Solar farm, slated to complete in 2021.

Terms of the deal have not yet been disclosed.