Leap of faith: Exxon bets the house on explosive growth in CCS and hydrogen
Rattled by activist investor, US supermajor grasps for a ‘green’ growth narrative
ExxonMobil’s latest strategy to shore up its finances while investing in lower carbon technologies is asking investors to take several giant leaps of faith in the potential future market for carbon capture and hydrogen. It does not acknowledge the risk that these technologies might fail to commercialise, nor does it say whether the company learned anything from the many poor decisions that left it so ill prepared for the energy transition – all of which leave it exposed to repeating past mistakes.
US supermajor ExxonMobil – which clawed back some lost ground in the New Year post-pandemic oil recovery after last year’s spectacular fall from grace – is facing its latest test: an activist investor agitating for change at this year’s annual general meeting.
In advance of the AGM, Exxon yesterday pushed out a lengthy slide deck reiterating its leadership in CCS, hydrogen and biofuels. The company made a few eyebrow-raising claims about the attractiveness of…