Darren Woods, the CEO of Exxon Mobil Corp., is fighting back after facing criticism from both environmentalists and investors during his seven years in charge.
This year, he’s taking aggressive actions like suing Chevron for trying to invest in Exxon’s oil project and suing investors who want Exxon to reduce its emissions.
He also agreed to a big takeover that would make Exxon the largest shale oil producer in the US. Woods also speaks more forcefully about climate goals, emphasising that we still need fossil fuels for energy and that people aren’t ready to pay for cleaner options.
This message is finding support on Wall Street, where there’s a growing dislike for environmental, social, and governance (ESG) pledges that clash with the need for reliable and affordable energy.
Exxon’s stock has risen significantly since losing a climate-focused battle in 2021. This turnaround is impressive, considering Exxon’s struggles during the pandemic when it suffered its biggest loss ever and faced employee departures and shareholder rebellion.
Exxon’s recovery reflects the resurgence of the American oil industry, which now produces more oil every day than Saudi Arabia. This has led OPEC and its allies to back down.
“It wasn’t that long ago it looked like taking the green approach was what the industry needed to attract capital,” said Jeff Wyll, a senior analyst at Neuberger Berman, which manages about $440 billion.
But Russia’s invasion of Ukraine “flipped the switch and energy security became more important. Exxon benefited because they never stepped back from their traditional business.”
