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Page added on May 31, 2018

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Exxon Says the World Needs Even More Oil

Business

Exxon Mobil Corp’s Darren Woods says his company is at the center of a delicate balancing act between those who want a cleaner environment and those seeking economic growth that depends on rising energy demand.

Exxon is planning to invest more than $200 billion in major oil and gas projects around the world over seven years, a signal that growth carries a bit more weight in company plans.

“Society has aspirations for economic growth, reliable and affordable energy, and environment protection,” Woods said at Exxon’s annual general meeting in Dallas on Wednesday. “We see our role as helping close the gap between what people want and what can be responsibly done. This is what I believe sustainability is all about.”

Woods cited investments in environmental projects such as algae biofuels, and in methods to cut emissions in its industrial processes, as helpful steps forward. But his comments at Exxon’s annual general meeting in Dallas on Wednesday set him apart from rivals in Europe, many of whom are investing in renewable energy such as wind, solar and in battery storage.

‘Bridging the Gap’

Exxon won’t invest in these areas if it doesn’t have a competitive advantage, Woods has said. “We are convinced that technology is going to play a role in bridging that gap and addressing those conflicts” between the growth in energy usage and curtailing emissions, he said at the meeting.

Meanwhile, at Chevron Corp.’s annual meeting, which also took place today, 45 percent of investors voted in favor of the company publishing targets on controlling methane emissions, a count falling just short of passing the resolution.

Chevron said the move was unnecessary since it’s already working hard to reduce emissions. It signed on this month to an industry-sponsored set of “guiding principles” dedicated to lowering emissions. Environmental groups cited the vote total as progress.

This “sends a powerful message to the oil and gas sector that methane is a key financial risk to the industry’s future,” the Environmental Defense Fund said in a statement.

At Exxon, there were no surprise votes, with investors rejecting a proposal to separate the CEO and chairman roles, approving current executive pay and supporting the company’s current board. In a wide-ranging speech, the CEO also said the company’s new projects — including an offshore discovery in Guyana and new development in Brazil — will make up half the company’s earnings by 2025.

Exxon has frequently been the lightning rod for activists and protesters against Big Oil’s role in climate change. The company may have managed to sidestep a vote on environmental issues this year after announcing a plan to cut methane emissions in September and enhancing it this month, when it pledged to reduce outflows by 15 percent from 2016 levels.

In his comments, Woods said that trillions of dollars of fresh investment is needed in oil and gas if the world is to meet the demand for energy out to 2040, even if policy makers limited global warming to two degrees above historical norms, Woods said.

“Oil and natural gas continues to play a huge role in all scenarios,” he said.

See also: Exxon CEO’s solution on shares: drill big, drill better

Woods has been mounting a strong defense of his strategy to ramp up spending on major oil and gas projects over the next seven years, at a time when many rivals are curtailing spending. For Woods, the returns from the global projects — from Guyana to Mozambique — are such that cash is better spent on them than being returned to investors through share buybacks.

The stock, which has lost its long-held premium rating over rivals, is up 2.9 percent since the strategy was unveiled in March, compared to a 14 percent rise in the price of oil and a 10 percent rise in the S&P Energy Index. Exxon gained 3.9 percent today with West Texas Intermediate up 2.3 percent to $68.26 a barrel at 2:42 p.m. in New York.

Rival Pledges

Most of Exxon’s rivals have pledged to retain a hard ceiling on capital expenditures even if oil prices rise as they seek to return more cash to investors.

BP Plc is buying back shares, Royal Dutch Shell Plc plans to spend $25 billion on stock in the open market through 2020, and Chevron Corp. has hinted it may restart a buyback plan if cash flows continue to improve.

Exxon, historically one of the S&P 500’s biggest stock repurchasers, has no immediate plans to follow suit. The oil major will first use its cash to pay dividends and invest in growth projects.

“The thing that I won’t do is compromise these advantaged, value accretive investments to buy back shares,” Woods said in an interview with Bloomberg News last week.

bloomberg



28 Comments on "Exxon Says the World Needs Even More Oil"

  1. MASTERMIND on Thu, 31st May 2018 3:21 pm 

    Over 146,000 Americans will lose their jobs because of Trump’s trade tariffs

    https://qz.com/1293821/trump-trade-war-146000-us-job-will-be-lost-to-steel-tariffs/

  2. Davy on Thu, 31st May 2018 3:29 pm 

    QZ.joke.com. This is more than jobs which BTW is very hard to quantify. This is about a welcome revamp to status quo globalism.

  3. twocats on Thu, 31st May 2018 7:58 pm 

    I’m not sure if all the numbers have been made available (or at least compiled into a graph that I can easily find with my lazy-ass google search) but it doesn’t look like Oil Major Capital Expenditures in 2017 will even beat 2016 (which was the worst year going back to… what? 2007?).

    Still in this article most companies are talking stock buy backs. Exxon is one of the few talking up development and they are not even talking very large numbers.

    So we are going on a decade of lowered investment at a time when the alarm bells have been ringing for a bit now about a supply gap. and in a new era where to stop drilling and pumping non-stop around the clock is to basically yell out “seneca cliff ahoy”.

    we’ve got way too many jack-wads on this forum that constantly point to the fact that total liquids keeps going up. maybe that’s our fault for calling this phenomenon peak oil, because its clear that growth has stopped in the US as a whole and most people can barely afford to live. Capitalism has gone completely Cannibal and all the braying morons can do it point to stock market and total liquids and say, “I uhhhhh told you george we gotta da rabbits and the stawks and I pet them and the oil and we gonna liv off da fat a da lan'”

  4. MASTERMIND on Thu, 31st May 2018 8:13 pm 

    Davy

    QZ is a joke..Science papers are broken links..You are the joke..and a narrow minded moron..Bush already tried this tariff nonsense and it was a train wreck..Trump doesn’t understand economics. He is just a petty autocrat who wants to get reelected by stupid people from states with the lowest education, like where you live..

    Tariffs Unlikely to Bring Back Many U.S. Blue-Collar Jobs, Study Finds
    https://blogs.wsj.com/economics/2018/04/04/tariffs-unlikely-to-bring-back-many-u-s-blue-collar-jobs-study-finds/

  5. MASTERMIND on Thu, 31st May 2018 8:14 pm 

    Twocats

    Yes we are approaching the mother of all oil shocks and shortages..And it will cause a global economic/government collapse..And after that happens..Its game over..total extinction..

  6. MASTERMIND on Thu, 31st May 2018 8:39 pm 

    U.S. Shale Production May Be Plateauing

    https://oilprice.com/Energy/Crude-Oil/US-Shale-Production-May-Be-Plateauing.html?utm_source=fb&utm_medium=fb_repost

    Looks like it might be game over soon for shale..

  7. MASTERMIND on Thu, 31st May 2018 9:06 pm 

    Krugman: Oh, What a Stupid Trade War (Very Slightly Wonkish)

    https://www.nytimes.com/2018/05/31/opinion/oh-what-a-stupid-trade-war-very-slightly-wonkish.html

    This trade war will actually be a job-killer, not a job-creator

  8. GregT on Thu, 31st May 2018 11:20 pm 

    “Yes we are approaching the mother of all oil shocks and shortages..And it will cause a global economic/government collapse..And after that happens..Its game over..total extinction..”

    Total extinction is likely to happen if humanity doesn’t stop burning fossil fuels MM. The best thing that could happen for the long term survivability of mankind, and most all other species of life on this planet, would be for fossil fuels to completely run out ASAP. The sooner the better…..

  9. GregT on Thu, 31st May 2018 11:23 pm 

    “This trade war will actually be a job-killer, not a job-creator”

    With each and every passing day, Cloggie is appearing to be more and more correct.

  10. Davy on Fri, 1st Jun 2018 5:29 am 

    “With each and every passing day, Cloggie is appearing to be more and more correct.”

    A grehgie’s groupie, lol. I guess his Nazi tendencies are truer by the day too for you. His vast..cough, cough…military knowledge likewise? One thing is true he luss for WW3. No the neder is gone off the deep end and you with him. Neder contributes some really good renewable info and that is where it ends. With you it is rare you contribute useful info. Mostly it is ultra nationalistic Canadian anti-American noise of stalking and pricking.

  11. Manila1 on Fri, 1st Jun 2018 6:27 am 

    “This trade war will actually be a job-killer, not a job-creator” Not to mention that the price of everything Americans buy will go up.

  12. MASTERMIND on Fri, 1st Jun 2018 6:53 am 

    If Trump puts tariffs on China..Does this mean Trump products will cost more?

  13. MASTERMIND on Fri, 1st Jun 2018 6:58 am 

    Madkat

    The U.S. would be all but defenseless from a mass attack by nuclear superpowers China and Russia

    https://www.bloomberg.com/view/articles/2018-05-29/u-s-missile-defense-for-a-scarier-nuclear-age

    Oh shit you were right..We are fucked..

  14. Davy on Fri, 1st Jun 2018 7:12 am 

    “This trade war will actually be a job-killer, not a job-creator” Not to mention that the price of everything Americans buy will go up.”

    Not by much. Few if any tariffs on consumer goods. Job loss is debatable too. We were losing jobs for other reasons too but new ones are appearing. It is time to put a stop to unfair trade.

    You guys make me laugh. You harp on the corporations and banks about exploitation then when their is talk of trade battles well then that is criticized too. What should it be? Do you geniuses have solutions? I think you dumbasses just comment on anything anti-American or anti-Trump. It does not matter what it is in your little binary minds just so it satisfies your emotions.

  15. Manila1 on Fri, 1st Jun 2018 7:13 am 

    MM, yes, YOU are fucked. You live in a country protected by an antique antimissile system, manned by a bunch of losers on drugs and lax discipline.

    A country constantly hitting the bear with a stick and threatening the dragon.

    A country with no idea what it is like to have your city bombed to rubble.

    A country whose payback is going to be devastating, and well deserved.

  16. Davy on Fri, 1st Jun 2018 7:16 am 

    3rd world, you are becoming more irrelevant by the month. Getting old ain’t for sissies huh. lol.

  17. MASTERMIND on Fri, 1st Jun 2018 7:23 am 

    “Benevolent White Supremacist” admits he’s a pedophile.

    https://www.huffingtonpost.com/entry/nathan-larson-congressional-candidate-pedophile_us_5b10916de4b0d5e89e1e4824?vf5

    The end game for the white nationalist! Raping children!

  18. MASTERMIND on Fri, 1st Jun 2018 7:26 am 

    Madkat

    I wonder if they are trying to get someone to nuke us or attack us..then it would likely bring down the economy..and then they can blame all of the economic problems on the attacker..And the angry US public would be neutralized. while the elites hide in their bunkers..

  19. Manila1 on Fri, 1st Jun 2018 7:54 am 

    MM, if there is a nuke attack on the US, there will be noting left. The idea will not be to cripple, but to destroy the Us totally. And missiles will come from all directions, not just over the North Pole. A Russian sub supposedly carries 16 missiles with 10 nuclear warheads each or 150 nukes. That 3AM flash.

    http://nationalinterest.org/blog/the-buzz/russias-nuclear-submarine-force-back-maybe-23255
    https://www.globalsecurity.org/wmd/world/russia/3m14.htm

    The Us will not exist after a nuclear exchange. Of course, fallout and a likely nuclear winter will make much of the world only a place of slow death. No winners.

  20. JuanP on Fri, 1st Jun 2018 7:56 am 

    MM, While I don’t think they are trying to nuke us, I do agree that it is all a circus and part of the reason we keep fucking with the Russians is to distract the stupid, ignorant masses from our real problems. The bread and circus strategy works. If your stomach is full and you are entertained you will not rebel. Wait a minute, let me get some ice cream! LOL!

  21. MASTERMIND on Fri, 1st Jun 2018 8:04 am 

    JuanP

    Yes the media on the left is totally obsessed with Russia and the Mueller investigation..And the right media is totally obsessed with illegal immigration..

  22. MASTERMIND on Fri, 1st Jun 2018 8:06 am 

    Madkat

    I am sure the US brass know everything you do..And that is why they will strike Russia with a nuclear first strike first..And it will send a message to china…

  23. Davy on Fri, 1st Jun 2018 8:39 am 

    “The Us will not exist after a nuclear exchange. Of course, fallout and a likely nuclear winter will make much of the world only a place of slow death. No winners.”

    Stupid, Russia, China, and Europe will end up the same but you are too stupid to understand that because of your emotional hatred. All major powers will likely let go of their missiles.

  24. fmr-paultard on Fri, 1st Jun 2018 10:09 am 

    supertard, anontard is derhund. he’s obsessed with corn husking stuff because he was a farm boy. from this experience of growing up he proclaimed “FBI investigated!”. Needless to say he has provided any evidence of probing. He’s also masquraded as “fmr paultard” without hypen and that elicited blistering attack from you on poor ole frm-paultard.

    he’s truely a weasel

  25. Free Speech Forum on Sun, 3rd Jun 2018 10:01 pm 

    Does anyone get the feeling that if the elites decreed that everyone must have their thumbs amputated, Americans would agree that the law makes sense and must be obeyed?

  26. Boat on Mon, 4th Jun 2018 12:02 am 

    The US subs carry 20 missiles, each missile can carry up 12 warheads, each with a different target. One sub could theoretically put the earth in climate freeze. Prep for that day. I would suggest a generation of everything.

  27. Boat on Mon, 4th Jun 2018 12:04 am 

    Free speech wins the anti American dumbass award.

  28. Boat on Mon, 4th Jun 2018 12:09 am 

    Paul-tard

    DerHund threatened me with alien demise once. Lol Only after being hearded like cattle at that.

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