ExxonMobil Forecasts Oil Dominance Through 2050 Amid Energy Clash
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In the current global climate, shifts are seen in the use of energy resources. During much of his tenure as the President of the United States, Joe Biden and his administration have pushed for renewable energy to be made the primary source instead of fossil fuels and petroleum.
This Monday, Exxon Mobil Corp (XOM:US) released an extensive summary discussing the future of the energy industry. The $517.70 billion oil and natural gas producer predicted that global oil demand will remain above 100 million barrels per day for the next 25 years, suggesting that efforts to shift away from fossil fuels will not be successful in reducing consumption.
This outlook is in stark contrast to the UK oil giant BP Plc (BP:US), which anticipates a decrease in oil consumption to 75 million barrels per day by 2050. Meanwhile, the International Energy Agency (IEA) estimates that oil demand would drop to 54.8 million barrels per day if governments fulfill their climate commitments on schedule.
On the congressional trading side, Exxon Mobil shares have been extensively traded by US Lawmakers. Most recently, XOM shares were picked up by Rep. Kevin Hern on June 10, 2024. The Oklahoma representative has reported as many as 101 trades in the energy sector in the past three years. In addition to XOM, he holds shares in DVN, and EMR, among others.
Rep. Greg Landsman and Senator Shelley Moore Capito were last seen selling XOM shares on May 29 and July 17 respectively. Senator Capito is seated on the Senate Committee on Environment and Public Works.
According to climate.gov, the year 2023 saw noticeable changes in the climate. Both global temperatures and greenhouse gas levels in the atmosphere reached their highest ever recorded. Among several companies, ExxonMobil was targeted for its stance on climate change, having attempted to cover up the phenomenon. In a report published on the company’s site in January 2024, ExxonMobil stated that its plans to reduce corporate-wide greenhouse gas emissions by as much as 20% to 30% before 2030.
It can be assumed that ExxonMobil is working hard to reduce the repercussions of climate change, but their predictions for future oil demands still seem realistic considering the rate at which the world is progressing.
XOM shares are trading 13.38% higher year-to-date.
