Exxon Urges State Agency Not to Disclose Agreement Terms for Texas CO2 Project

Exxon Mobil, a U.S. energy giant, has requested the Texas General Land Office (GLO) to refrain from publicly disclosing the terms of its offshore lease agreement for a carbon sequestration project with the state. In a letter dated Jan. 13 to the Attorney General of Texas, Exxon Mobil asked the GLO not to disclose materials under the Texas Public Information Act, citing confidential and proprietary commercial and financial information as the basis for its request.

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Largest Offshore Carbon Storage Lease in the U.S.

In October 2024, Exxon secured leases for more than 271,000 acres in Texas state waters for an offshore carbon dioxide capture operation. The company’s Jan. 13 letter stated the project is "the largest offshore carbon-dioxide storage lease in the United States," and emphasized the uniqueness of the deal's information, including proprietary commercial terms.

"If competitors knew dollar amounts, term lengths, and other similar specific commercial terms of this Lease, they could potentially determine portions of ExxonMobil's rate structures and strategies regarding its broader carbon-dioxide transportation and storage business," the letter added.

Expanding Carbon Storage Initiatives

The October lease builds on Exxon's 2021 bid for federal land off the Texas coast for CO2 capture. Additionally, Exxon emerged as the high bidder on 69 blocks in the shallow waters of the U.S. Gulf of Mexico in 2023, further expanding its potential carbon storage footprint.

Industry-Wide Adoption of Carbon Capture

Carbon capture — the process of storing CO2 emissions from industrial activity underground — has gained traction among major energy companies, including Chevron, Occidental Petroleum, and TotalEnergies. These efforts aim to reduce emissions and address climate change while positioning the industry to meet growing environmental challenges.