CEO Exxon: This ugly energy transition will all be paid for by consumers. Have they ever asked you anything?

ExxonMobil predicts that all new cars sold in two decades will be electric vehicles, but it also believes consumers will "pay a high price" in this renewable energy race without providing the energy society currently needs. This emerged from an interview with Darren Woods, CEO of Exxon, granted last week to David Faber of CNBC. Exxon joins many other oil producers who say governments and politicians need to strike a balance between the drive to reduce carbon emissions and the current need for affordable energy for the population. The recent underinvestment in traditional energy sources is a blow to energy supplies now and in the near future, leading to high prices and record gasoline prices, Exxon's chief executive told CNBC. This is the oil industry's latest warning that politicians should look at short-term energy needs and plan for a low-carbon future.

Of course, it's not unusual for a large oil company to warn of a hasty transition. However, the current global energy crisis, with record gasoline prices, gives reason to all those executives and officials of the oil-producing countries of the Middle East who have been warning for over a year that the reduction in investments in oil and gas would backfire. against consumers and governments.

After the first COVID lockdowns, many industry analysts had predicted an end to global oil demand growth and that we would never again see demand for oil as high as in 2019. But people have returned to travel and, according to analysts demand will surpass pre-COVID levels next year. Even the International Energy Agency (IEA), which last year said no investments should be made in new supplies if the world is to reach net zero by 2050, in its latest monthly report predicted that demand global market will reach a record average of 101.6 million barrels per day (bpd) and surpass pre-COVID levels in 2023. Furthermore, market turbulence due to the Russian invasion of Ukraine could even lead to supply struggling to keep pace with demand next year, as sanctions against Russia would reduce supply when they officially take effect later this year.

According to the industry, the supply struggle is not only the result of an ever-changing global oil market, with the Russian war in Ukraine and Western sanctions against Russia's oil exports. It is also the result of several years of underinvestment in the offering, and this is also the point of view of Exxon.

Earlier this month, President Joe Biden criticized Exxon and other oil companies for their excessive profits, saying "Exxon has made more money than God this year." President Biden wants companies to produce more gasoline and cut bills for American consumers.

"In a time of war, it is not acceptable for refinery profit margins, well above the norm, to be dumped directly on American households," President Biden said in a letter to the industry.

In response to the letter, Exxon said that in the short term, the US government could take measures often used in emergencies after hurricanes or other supply disruptions, such as waiving the provisions of the Jones Act and certain fuel specifications to increase fuel efficiency. supplies.

"In the longer term, the government can promote investment through clear and consistent policies that support the development of US assets, such as regular and predictable lease sales, as well as leaner regulatory approval and support for infrastructure such as pipelines," said the oil major.

What is true is that the current energy crisis is artfully created. Nobody thought about providing alternative energy sources before taxing oil or not investing in it, creating a forced energy shortage. They wanted to make you all poorer, in a malicious way. Except complaining that then, perhaps, the populist parties will be voted on.

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Article CEO Exxon: This Bad Energy Transition Will All Be Paid for by Consumers. Have they ever asked you anything? comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Tue, 28 Jun 2022 11:32:32 +0000.