Will oil continue to play a role in future economies, and if so, to what extent? The Global consensus is shifting towards reduced reliance on oil as renewable energy and mass EV adoption gain momentum.
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Big Oil, though, believes oil will have a substantial role to play in the global economic engine for decades to come, according to a Bloomberg report. The who’s who of the oil industry have huddled together at the 24th World Petroleum Congress in Canada this week.
Exxon (NYSE:XOM) CEO Darren Woods commented, “There seems to be wishful thinking that we are going to flip a switch and we will go from where we are at today to where it will be tomorrow.” The CEO opined that irrespective of demand, some degree of investment has to be maintained in the industry to avoid running short of supply.
Saudi Aramco CEO Amin Nasser sees oil demand rising to 110 million barrels a day by 2030. Nasser thinks investments in oil are needed, otherwise, a crisis could mean “we will go backwards in terms of using more and more coal and other cheap products available today. All of these decarbonization efforts will go down the drain.”
Meanwhile, the state of California has accused multiple oil producers, including Exxon, Shell (NYSE:SHEL), ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX), and BP (NYSE:BP) of deceiving the public by downplaying potential risks from fossil fuels for decades, leading to damages worth billions of dollars.
What Is the Prediction for Exxon Stock?
Exxon’s share price has surged by nearly 265% since the pandemic lows of September 2020. In addition, analysts see a further 4.9% potential upside in the stock based on a consensus price target of $123.57 and a Moderate Buy rating.
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