New ExxonMobil Report Provides A Reality-Based Energy Transition Outlook

Before getting into the meat of this story, a review of notable events from recent days is in order.

-        Bloomberg reported on August 30 that a recent update by British/Dutch oil giant Shell quietly omits a previously-announced radical plan to cut the company’s carbon emissions in favor of increased investment in finding and producing more oil and natural gas.

-        The same media platform reported August 29 that China’s government has now approved the building of more new coal-fired power plants than are currently operating in the United States, a tacit admission that more fossil fuel energy is required to meet rising demand for electricity, even as Chinese population growth has stagnated.

-        Also on August 29, Rystad Energy released a new report which finds the “reinvestment rate among a group of 18 public shale companies hit 72% in Q2 2023, the highest since Q2 2020,” as U.S. shale producers strive to raise production to meet rising demand.

All these stories and others are indicative of the fossil fuels industries and governments refocusing investments away from less productive green energy schemes, plowing more capital into efforts to increase production and generation. The driving factor behind this rededication to growth is obvious: The world continues to demand more oil, natural gas, and yes, coal to provide reliable and affordable energy to the masses.