- COVID involved near shutdown of economies, with big reductions in fossil fuel use; recovery involves some near term return to fossil fuel consumption but it doesn’t mean “business as usual”.
- Small end of town, big business, fund managers, countries are all signing up to net zero (substantial exit from fossil fuels) by 2050, although there is a lot to do.
- New focus on 50% emissions reduction by 2030 heralds big near-term reduction in oil and gas use. Switch from oil/gas to renewables and BEVs locks in long-term change.
- Evidence everywhere that technology is changing fast and this is a direct threat to XOM’s business; it explains the changes happening in European oil and gas companies (eg Total Energies, BP, Shell) but not XOM.
- Small investors might consider whether XOM is a suitable company for their energy and transport investments.
For further details see:
Why Exxon Mobil Share Price Is Stuck