Exxon CEO talks 'broader set of solutions' for energy transition

Saudi Aramco CEO Amin Nasser told attendees at CERAWeek by S&P Global, a global energy conference, that global leaders should "abandon the fantasy of phasing out oil and gas."
When asked about those comments, ExxonMobil Chairman and CEO Darren Woods (XOM) tells Yahoo Finance's Julie Hyman that things like wind and solar power and the rise of EVs are a "necessary but not sufficient set of solutions" to the energy transition. Instead, Woods proposes a "broader" set of solutions is needed, including things like carbon capture and storage, hydrogen, and biofuels. Woods credits the Inflation Reduction Act (IRA) for opening "the aperture on other opportunities to reduce emissions above and beyond what wind and solar can do."
When it comes to the IRA, Woods calls it "technology agnostic." The legislation "says what you should focus on is achieving an outcome which is lower carbon intensity for a product," Woods says, and as a result, the door is opened to other businesses to help achieve that goal, something Exxon is a "fan" of.
The legislation has come under fire from Republicans, with Trump campaign officials telling the Financial Times that the former president would "gut" the IRA if he were reelected to the White House. If that were to happen, Woods says Exxon would be "responsive" to changes made by a new administration, but that "ultimately the world needs to decarbonize. We need to do more to reduce emissions. And I think the IRA is a good step towards that in terms of being technology agnostic, focus on reducing the emissions and lowering the carbon intensity of society. And I think that's the right approach."
One of the big issues facing ExxonMobil right now is Chevron's (CVX) $53 billion deal to buy Hess (HES). Exxon, Hess, and China National Offshore Oil Corporation all have a stake in the Stabroek Block in Guyana. Exxon claims it has a right of first refusal when it comes to Hess's Guyana stake and has filed for arbitration with the International Chamber of Commerce. Woods says there are three reasons why the arbitration is important: to confirm and preserve their preemption rights, learn how Chevron values the assets in the Hess deal, and to "understand the value of that preemption right and what's in the best interest of the corporation and for our shareholders."
About Yahoo Finance:

Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

- Get the latest news and data at finance.yahoo.com

- Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)

- Follow Yahoo Finance on social:

X:   / yahoofinance  
Instagram: https://www.instagram.com/yahoofinanc...
TikTok: https://www.tiktok.com/@yahoofinance?...
Facebook:   / yahoofinance  
LinkedIn:   / yahoo-finance