Saturday, April 1, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Market

Exxon: Big Oil should invest forward, not buy back

2 months ago
in Market
Exxon: Big Oil should invest forward, not buy back
Share on FacebookShare on Twitter


Big Oil had a monster year in 2022. In the US, ExxonMobil and Chevron collectively made more than $91bn in net income. The record profits — which work out to a staggering $173,135 per minute — drove higher dividends and lofty share buyback plans.

Investors should enjoy the moment. Profit growth was already starting to decelerate in the fourth quarter. Earnings are expected to fall this year and next. The decarbonisation challenge is ever more urgent.

Exxon and Chevron generated nearly $100bn in free cash flow last year. Only a small slice of that went into projects that will help them switch away from fossil fuels.

Payouts to shareholders will trump capital expenditures in the near term. Exxon, for example, plans to spend more than $30bn on dividends and share buybacks per year through 2024. That compares with the $20bn-$25bn a year that it has penned in for capex. Of this, about $3.4bn will be on lower emissions projects.

Oil companies are keen to reward investors after shares were marked down during the pandemic. But energy stocks have enjoyed a massive rally. Exxon stock hit a new high last week after climbing some 160 per cent over two years. Chevron, whose shares have more than doubled during the period, is also trading near the record highs set in November.

The insistence of oil majors towards buybacks at such elevated prices is short-sighted.

Exxon has a contrarian reason for sticking with its oil and gas business. It believes the world will consume more crude in 2050 than today. That stands in contrast to BP, which is projecting a 25 per cent drop in demand by 2050.

Despite the big run-up in share prices, the energy sector still accounts for just 5 per cent of the S&P 500. A decade ago, it was more than 11 per cent. That share is set to shrink further.

Oil majors are not the real culprits: blame governments for failing to agree a detailed transition plan. Even so, there is a real danger that Exxon’s 2022 results will be remembered as marking the high point of a collective delusion.

Lex is the FT’s concise daily investment column. Expert writers in four global financial centres provide informed, timely opinions on capital trends and big businesses. Click to explore



www.ft.com

Latest Oil News

Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

March 31, 2023
Vitol profits soar to record $15bn on back of energy crisis

Vitol profits soar to record $15bn on back of energy crisis

March 30, 2023
US natural gas prices: déjà vu all over again

US natural gas prices: déjà vu all over again

March 29, 2023
Is the oil price bounce on?

Is the oil price bounce on?

March 28, 2023
Tags: BigBuyExxonInvestoil
Previous Post

Eni Boosts Gas Production In Libya With $8 Billion Investment

Next Post

Ship stuck in Egypt’s Suez Canal but traffic unaffected

Related Posts

Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

by Oil Market News
March 31, 2023
0

This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to...

Vitol profits soar to record $15bn on back of energy crisis

Vitol profits soar to record $15bn on back of energy crisis

by Oil Market News
March 30, 2023
0

Vitol, the world’s largest independent commodity trader, has emerged as one of the biggest winners of the energy crisis, reporting...

US natural gas prices: déjà vu all over again

US natural gas prices: déjà vu all over again

by Oil Market News
March 29, 2023
0

This time was supposed to be different. Last summer, the price of US natural gas hit a high of $10...

Is the oil price bounce on?

Is the oil price bounce on?

by Oil Market News
March 28, 2023
0

This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to...

‘Full investigation’ promised into UK wildlife haven oil spill

‘Full investigation’ promised into UK wildlife haven oil spill

by Oil Market News
March 27, 2023
0

The UK government has promised a “full investigation” into the causes of an oil spill over the weekend into Poole...

Libyan state oil chief stresses support across divided country

Libyan state oil chief stresses support across divided country

by Oil Market News
March 26, 2023
0

The head of Libya’s state oil company said he had the backing of both the government in Tripoli and the...

Next Post
Ship stuck in Egypt’s Suez Canal but traffic unaffected

Ship stuck in Egypt's Suez Canal but traffic unaffected

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Oil-Exporting Colombia Says No to Oil Exploration

Oil-Exporting Colombia Says No to Oil Exploration

2 months ago
Bumper profits raise pressure on oil majors

Bumper profits raise pressure on oil majors

5 months ago
Shell launches shake-up under new chief Wael Sawan

Shell launches shake-up under new chief Wael Sawan

2 months ago
Brent stable as EU tweaks sanctions to allow oil shipments to third countries By

Oil prices in weekly win on tighter supply bets as Russia mulls output cuts By

3 months ago
Saudi wealth fund snaps up $7.7bn of blue-chip stocks

Saudi wealth fund snaps up $7.7bn of blue-chip stocks

11 months ago
ADVERTISEMENT
Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

March 31, 2023

Vitol profits soar to record $15bn on back of energy crisis

March 30, 2023

US natural gas prices: déjà vu all over again

March 29, 2023

Is the oil price bounce on?

March 28, 2023

‘Full investigation’ promised into UK wildlife haven oil spill

March 27, 2023

Libyan state oil chief stresses support across divided country

March 26, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Chickens are ‘coming home to roost’ in the shale patch

Chickens are ‘coming home to roost’ in the shale patch

March 31, 2023
Vitol profits soar to record $15bn on back of energy crisis

Vitol profits soar to record $15bn on back of energy crisis

March 30, 2023
US natural gas prices: déjà vu all over again

US natural gas prices: déjà vu all over again

March 29, 2023
Is the oil price bounce on?

Is the oil price bounce on?

March 28, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.