Business Strategy and Outlook
| Allen Good, CFA |While many of its peers have announced intentions to divert investment toward renewables to achieve long-term carbon intensity reduction targets, Exxon remains committed to oil and gas. It has responded to calls to bring in more outside voices to its board and announced emission reduction targets. It is also investing in low-carbon technologies, but each of these efforts is measured and keeps oil and gas (LNG) production at the core. While its strategy is unlikely to win praise from environmentally oriented investors, we think it’s likely to prove more successful and, paradoxically, likely holds less risk.