Exxon Ends Algae Biofuel Quest, What It Implies Long Term


  • In a bid to better align with a green path demanded from within the boardroom and from outside, Exxon went on a hydrocarbons divestment spree in the past year.
  • Hopes that green replacement initiatives will fill the void left by the abandonment of hydrocarbons were in part dashed as it seems it is no longer pursuing algae-based biofuel production.
  • Between a lack of new conventional oil & gas discoveries, divestments, as well as failing green paths, Exxon may be on the cusp of a permanent upstream volume production decline.
  • Upstream decline prospects are more of a long-term investment issue. This year and next, Exxon may see its best financial results ever, with record profits & revenues, on the back of rising oil & gas prices.
General Views of New York

Bruce Bennett

Investment thesis

Exxon Mobil (NYSE:XOM) just saw a massive financial results improvement in 2022, and I expect the stellar results to last this year as well as next, on the back of robust oil & gas prices. Beyond these years, however, a number of divestments, and a

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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