TL/DR –
Saudi Aramco CEO Amin Nasser has urged global leaders to “abandon the fantasy of phasing out oil and gas.” ExxonMobil CEO Darren Woods supports this, stating that alternative solutions like wind and solar power and the rise of electric vehicles are important but not enough for the energy transition, suggesting that broader solutions such as carbon capture and storage, hydrogen, and biofuels are needed. Woods also highlighted the importance of the Inflation Reduction Act (IRA) in reducing emissions and its impact on Exxon’s operations, stating that the company would adapt to any changes made by a new administration but emphasized the need to focus on reducing emissions and lowering the carbon intensity of society.
Saudi Aramco CEO Advocates for Continued Use of Oil and Gas
At the CERAWeek by S&P Global, a global energy conference, Saudi Aramco CEO Amin Nasser advocated for abandoning the idea of phasing out oil and gas. ExxonMobil Chairman and CEO Darren Woods, speaking to Yahoo Finance’s Julie Hyman, echoed Nasser’s sentiment, arguing a broader set of solutions is necessary, including carbon capture and storage, hydrogen, and biofuels.
ExxonMobil Supports Inflation Reduction Act
Woods addressed the Inflation Reduction Act (IRA), which he credits for paving the way for other solutions to reduce emissions. He refers to the legislation as “technology agnostic,” promoting the reduction of carbon intensity for a product. Woods stands for this approach, which opens doors for businesses to reach this goal.
Proposed Allocation of the IRA
Republican officials have criticized the legislation, with Trump campaign officials telling the Financial Times that the former president would gut the IRA if reelected. Woods assures Exxon’s adaptability regarding any changes made by new administrations, emphasizing the need for emission reduction.
ExxonMobil Faces Challenges with Chevron’s Acquisition of Hess
Another significant issue for ExxonMobil is Chevron’s $53 billion deal to buy Hess. Exxon, Hess, and China National Offshore Oil Corporation all have a stake in the Stabroek Block in Guyana. Exxon claims a right of first refusal concerning Hess’s Guyana stake and has filed for arbitration with the International Chamber of Commerce.
Video Transcript
Excerpts from Yahoo Finance’s interview with ExxonMobil’s CEO Darren Woods can be viewed below. Topics discussed include reframing the energy transition, details of the Inflation Reduction Act, balancing the need for fossil fuels with emission reduction, plans to achieve net zero in the Permian Basin by 2030, and commentary on Chevron’s acquisition of Hess.
Key video moments
00:00:25 Woods on reframing the energy transition
00:02:15 Woods discusses what works in the Inflation Reduction Act
00:04:39 Balancing the need for fossil fuels with the need to reduce emissions
00:06:28 Woods talks plans to be net zero in the Permian Basin by 2030, carbon capture technology
00:08:30 Woods on Chevron-Hess deal and Guyana
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