Big Oil, Big Bet: Indonesia's Pertamina & Exxon Aim For Gigatonne CO2 Grab
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation (NYSE:XOM) and Indonesia's Pertamina are planning to develop a carbon capture and storage (CCS) hub in Indonesia's Asri Basin, with potential storage of up to 3 gigatonnes of CO2 and an investment of $2 billion. They have also partnered with South Korea's KNOC. Additionally, Exxon recently completed the acquisition of Pioneer Natural Resources, doubling its Permian production. Investors can gain exposure to XOM through Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE).
May 15, 2024 | 4:45 pm
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POSITIVE IMPACT
The iShares U.S. Energy ETF (IYE) includes Exxon Mobil (XOM), which is making significant strides with a CCS project in Indonesia and a major acquisition, potentially enhancing the ETF's performance.
IYE's performance is likely to be positively impacted by Exxon's recent developments, including the CCS project and the acquisition of Pioneer Natural Resources, which could boost Exxon's stock performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
The Energy Select Sector SPDR Fund (XLE) provides exposure to Exxon Mobil (XOM), which is involved in a significant CCS project in Indonesia and has completed a major acquisition, potentially boosting the fund's performance.
XLE's performance is likely to benefit from Exxon's positive developments, including the CCS project and the acquisition of Pioneer Natural Resources, which could enhance Exxon's stock performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Exxon Mobil Corporation (XOM) is partnering with Pertamina to develop a CCS hub in Indonesia's Asri Basin, with a potential storage capacity of 3 gigatonnes of CO2 and an investment of $2 billion. Exxon also completed the acquisition of Pioneer Natural Resources, doubling its Permian production.
The partnership for a CCS hub and the acquisition of Pioneer Natural Resources are significant developments for Exxon Mobil. The CCS project aligns with global sustainability trends, and the acquisition boosts Exxon's production capacity, both likely to positively impact the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100