Exxon Says Its Decarbonization Business Could Outgrow Oil
The largest US oil producer laid out to investors the aims of its emerging energy transition strategy in a meeting with Wall Street.
Exxon Mobil's Low Carbon business has the potential to generate hundreds of billions of dollars in revenue and outperform the company's traditional oil and gas business as soon as a decade from now, CEO Darren Woods said.
The largest US oil producer laid out to investors the aims of its emerging energy transition strategy in a meeting with Wall Street. Exxon is tackling what should be a multitrillion-dollar market in 10 years or more, Woods said.
The result will be an Exxon less prone to commodity price swings through predictable, long-term contracts with customers striving to reduce their own carbon footprint.
"This business is going to look quite a bit different than the base business of Exxon Mobil," said Dan Ammann, president of Exxon's 2-year-old Low Carbon Business Solutions unit. "It is going to have a much more stable, or less cyclical, profile."
How quickly that vision becomes a reality will depend on regulatory and policy support for carbon pricing — something the US has not broadly accepted — and the cost to abate greenhouse-gas emissions, among other changes, he said.