- Jun 13, 2021 5:09 pm GMT
The recent overhaul of Exxon Mobil Corp.’s board of directors could shift billions of dollars in spending and strategy over several years, but any changes likely will take time, analysts and investors say.
- Investors rejected XOM view of a slow transition to lower-carbon fuels - want spending to be revisited.
- The practice led XOM to miss industry shifts and play catch-up at the expense of its balance sheet.
- Investors want a “fundamental rethink on strategy; the big measure” being its $16 billion-$19 billion annual project spending.
- XOM did not pay attention early enough to public frustration over global warming & ESG. Investors,
- Energy analysts do not see Exxon slashing its biggest ventures—offshore oil in Guyana and Brazil, or LNG in Asia and the U.S.
- LNG projects that supplant oil production also can help Exxon Mobil reduce emissionsIn the U.S.
- XOM has sharply cut drilling and reduced its shale output goals to 700,000 bbl/d from 1 million.
“This is a call to reassess fundamentals of supply and demand for energy in the long term, and to question whether Exxon’s current thinking around renewables gaining market share is too modest,”
Get Published - Build a Following
The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.