Exxon Mobil CEO cautions against an abrupt energy transition, warning underinvestment leads to high gas prices

Exxon Mobil

Exxon Mobil CEO Darren Woods warns that an abrupt transition to renewable energy will cause society to “pay a high price.”

The national average price for a gallon of gasoline is currently nearly $5, causing strife for all drivers, according to AAA.

In an interview with CNBC’s David Faber, Woods cautioned against a government policy that fails to balance the current demand for affordable energy with the need for lower emissions. He said that underinvestment in the oil and gas industry correlates to higher prices. Instead, Woods continued his calls for a price on carbon to create a market incentive for lowering emissions.

In addition to impacting families who depend on affordable energy, Woods said that rising oil and gas prices have already pushed consumers in Europe to use other fossil fuels, like coal, rather than renewable energy.

Sherlina Nageer is an American activist in Guyana, where Exxon Mobil recently invested $10 billion in a fourth offshore oil production project. She told Faber that all oil development should stop, saying, “the negatives in the long term outweigh whatever positives may be reaped in the short term.”

Katharine Hayhoe, chief scientist at The Nature Conservancy, stressed the importance of transitioning away from fossil fuels. She cautioned, “If we don’t fix climate change, it will fix us.”

When Faber asked Woods what Exxon Mobil will look like in 10 years, he predicted that the company may continue to participate in oil and gas exploration, although it will also engage in renewable energy solutions like biofuels.

As Exxon Mobil navigates the energy transition, Woods emphasized his commitment to balancing existing demands for affordable energy with “the needs of the future as well, which is lower emissions.”
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Watch the full interview in the video and see the full documentary, “ExxonMobil at the Crossroads,” on YouTube, Peacock and CNBC.com.

About Stu Turley 1967 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience in implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor in this space. Stuart has led the “Total Corporate Digital Integration” platform at Sandstone and works with Sandstone clients to help integrate all aspects of modern digital business. He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage and is the Co-Host of the energy news video and Podcast Energy News Beat. Stuart is on Board Member of ASN Productions, DI Communities Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.