HAL - Exxon Mobil And Fossil Fuel Price Volatility

• A key feature of energy provided by fossil fuels is the inherent delays in balancing supply and demand. This leads to big cyclic price swings for power prices.
• This large fluctuating price instability differs from renewable energy (solar PV and wind power) because, once built, these resources don’t need further exploration and development to provide power.
• Massive renewables projects show that change is coming fast, but it is more of the same at the World Petroleum Conference, which sees a future with expanded fossil fuel exploitation.
• Here I argue that the price instability of oil and gas is accelerating exit from fossil fuels and this is a significant near-term negative for Exxon Mobil’s business.

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