US Energy Policy Shifts as ExxonMobil Ditches Low-Carbon Goals
The Trump White House has announced a revised National Security Strategy that puts oil, natural gas, coal, and nuclear at the forefront of US national security. The plan's emphasis on "Energy Dominance" aims to create well-paying jobs, reduce costs for consumers, fuel reindustrialization, and maintain the country's advantage in cutting-edge technologies like AI.
However, the strategy's rejection of climate change and net-zero ideologies has significant implications for ExxonMobil's Low Carbon Solutions business unit. The company recently released a new five-year corporate plan that cuts planned investments in low-carbon ventures by 33%, reallocating billions of dollars to its core oil and gas business projects.
ExxonMobil CEO Darren Woods said the move will lead to $25 billion in earnings growth, $35 billion in cash flow growth, and a return on capital employed of over 17% by 2030. The company's plan focuses on three "advantaged assets": its leading position in the Permian Basin, massive oil development in the Stabroek field offshore Guyana, and rapidly expanding LNG investments.
The move is seen as a textbook example of a corporate management team carrying out its fiduciary duty to maximize returns to investors. It's likely that other major oil and gas companies will follow suit.
The shift in US energy policy has been influenced by the Trump administration's efforts to promote American energy independence. The plan's emphasis on expanding net energy exports, deepening relationships with allies, and curtailing the influence of adversaries is aimed at protecting America's shores and projecting power.
However, this approach also reflects rapidly evolving market factors. The ESG investing trend has fallen from favor, with major proponents like BlackRock CEO Larry Fink abandoning the term in internal and external communications. Similarly, company CEOs have pledged to de-emphasize green investments and ESG reporting to reallocate capital back to their core business activities.
The development highlights the rapidly shifting dynamics in the energy space, where markets drive policy priorities. ExxonMobil's move is a first step into this new landscape, but it's likely that other companies will soon follow suit as they adjust their plans to reflect these changing circumstances.
The Trump White House has announced a revised National Security Strategy that puts oil, natural gas, coal, and nuclear at the forefront of US national security. The plan's emphasis on "Energy Dominance" aims to create well-paying jobs, reduce costs for consumers, fuel reindustrialization, and maintain the country's advantage in cutting-edge technologies like AI.
However, the strategy's rejection of climate change and net-zero ideologies has significant implications for ExxonMobil's Low Carbon Solutions business unit. The company recently released a new five-year corporate plan that cuts planned investments in low-carbon ventures by 33%, reallocating billions of dollars to its core oil and gas business projects.
ExxonMobil CEO Darren Woods said the move will lead to $25 billion in earnings growth, $35 billion in cash flow growth, and a return on capital employed of over 17% by 2030. The company's plan focuses on three "advantaged assets": its leading position in the Permian Basin, massive oil development in the Stabroek field offshore Guyana, and rapidly expanding LNG investments.
The move is seen as a textbook example of a corporate management team carrying out its fiduciary duty to maximize returns to investors. It's likely that other major oil and gas companies will follow suit.
The shift in US energy policy has been influenced by the Trump administration's efforts to promote American energy independence. The plan's emphasis on expanding net energy exports, deepening relationships with allies, and curtailing the influence of adversaries is aimed at protecting America's shores and projecting power.
However, this approach also reflects rapidly evolving market factors. The ESG investing trend has fallen from favor, with major proponents like BlackRock CEO Larry Fink abandoning the term in internal and external communications. Similarly, company CEOs have pledged to de-emphasize green investments and ESG reporting to reallocate capital back to their core business activities.
The development highlights the rapidly shifting dynamics in the energy space, where markets drive policy priorities. ExxonMobil's move is a first step into this new landscape, but it's likely that other companies will soon follow suit as they adjust their plans to reflect these changing circumstances.
... i mean, i thought they were trying to reduce carbon emissions and stuff? so if exxonmobil is focusing more on oil and gas, that means less investment in renewable energy, right? but at the same time, they're saying it'll bring them $25 billion in earnings growth... that's a lot of benjamins 
. i guess i just don't understand how all this works 
... can someone explain it to me?
. I mean, we all know climate change is a real thing and we need to start reducing our carbon footprint ASAP. But hey, it's every company for itself, right? 
. But still, can't we find a way to balance business with being good citizens of the planet? It's all about making decisions that benefit both our economy and our future generations 
.
. I mean, putting oil and gas at the forefront of national security? That's just asking for trouble 
. We need to think about the long-term effects of our actions and not just focus on short-term gains.
. But I'm gonna keep preaching about the importance of sustainability and taking care of our planet 
, right? I mean, if ExxonMobil is ditching low-carbon goals and focusing on making more dough, what's the point of trying to save the planet, you know? 
It's all about the benjamins, baby 
. I don't get why we gotta prioritize "Energy Dominance" over saving the planet, though 
exxonmobil just pulled out of low carbon goals and i'm like totally shocked 
what does this mean for the planet tho? 
i get that companies gotta think about profits but come on, can't they find a way to make money without sacrificing the future of our planet? 
we need to start making some noise about climate change and holding companies accountable 
i guess it just shows how markets and policy priorities can shift so fast like, remember when everyone was talking about eSG investing 
... ExxonMobil just announced they're cutting investments in low-carbon ventures and focusing on oil and gas instead? That's a huge step backward! 
I mean, I get that companies gotta make money, but can't we find a way to do it without destroying the planet at the same time? 
It's like, we know the risks, and we're just choosing to go ahead with business as usual... I don't get it. Can't we work together to find a solution that benefits everyone? 
. Fingers crossed that others will follow ExxonMobil's lead! 
I get it, maximizing returns for investors is key, but can't they balance profits with sustainability too? 
.
. We need bold action, not more profits from fossil fuels! 