CEO Of Exxon On The Offensive After Wall Street Sourds On ESG

(CTN News) – It has been seven years since Darren Woods took over the helm of Exxon Mobil Corp., and in that time he has faced both environmentalists and investors who have attacked him.

Woods has already filed an arbitration case against Chevron Corp. for attempting to purchase Exxon’s massive offshore oil project in Guyana, and a lawsuit against investors demanding that the company reduce its emissions.

In just months earlier, he had agreed to a $60 billion takeover of Exxon, making it the largest producer of US shale oil.

Also, Woods has become increasingly strident about climate change in speeches and interviews, arguing that fossil fuels will still be required to meet energy demands for decades to come and that people are unwilling to pay for cleaner alternatives, so the world will not be on a path to net-zero carbon emissions by 2050.

While the message may be controversial, it is resonating on Wall Street, where “ESG” has become a hated moniker as environmental, social, and governance pledges rub against the need for secure and affordable energy.

The share price of Exxon has increased by 89%, more than four times the price of the S&P 500, since the company lost a proxy war prompted by climate change at the end of 2021.

Exxon has experienced a remarkable turnaround since the pandemic era, when it suffered its largest-ever loss, employees left in droves, and the shareholder rebellion forced Woods to replace a quarter of his board.

Exxon’s revival is emblematic of the resurgent American oil industry, which pumps 40% more crude per day than Saudi Arabia, forcing OPEC and its allies to retreat.

The green approach was once considered by industry experts to be the key to attracting capital in the industry a few years ago,” Jeff Wyll, a senior analyst at Neuberger Berman, said, whose firm manages about $440 billion of assets.

A switch was flipped when Russia invaded Ukraine, and energy security became more crucial as a result. Exxon benefited because it never stepped back from its traditional business.”

SEE ALSO:

Bitcoin Rally: What Investors Need To Know About Crypto Taxes