Exxon Bets Big On Oil: Expects Crude Demand To Defy Green Transition
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation (NYSE:XOM) anticipates crude demand to remain above 100 million barrels per day through 2050, supporting its production growth plans. The company projects minimal impact from electric vehicles on long-term oil demand. Exxon plans to produce 4.3 million barrels of oil and gas daily this year, significantly more than Chevron's output. Investors can gain exposure to Exxon through Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE).
August 26, 2024 | 3:39 pm
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POSITIVE IMPACT
Investors can gain exposure to Exxon Mobil through the iShares U.S. Energy ETF, which may benefit from Exxon's positive outlook on crude demand.
IYE, which includes Exxon Mobil, may benefit from Exxon's positive outlook on crude demand, potentially boosting the ETF's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Exxon Mobil through the Energy Select Sector SPDR Fund, which may benefit from Exxon's positive outlook on crude demand.
XLE, which includes Exxon Mobil, may benefit from Exxon's positive outlook on crude demand, potentially boosting the fund's performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Exxon Mobil expects crude demand to remain strong through 2050, supporting its production growth plans. The company projects minimal impact from electric vehicles on long-term oil demand.
Exxon's optimistic outlook on crude demand supports its production growth plans, which is likely to positively impact its stock price. The minimal impact of EVs on oil demand further strengthens this outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Exxon's outlook on global carbon emissions is more cautious than BP's, with significant reductions expected post-2029 compared to BP's mid-decade target.
Exxon's cautious outlook on carbon emissions compared to BP's may not have a significant short-term impact on BP's stock price, but it highlights differing strategies in addressing emissions.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Exxon plans to produce significantly more oil and gas daily this year compared to Chevron, highlighting Exxon's aggressive production strategy.
Exxon's higher production plans compared to Chevron may not immediately impact Chevron's stock, but it underscores Exxon's aggressive growth strategy.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 40