Exxon Mobil Drops 3.07% Amid Energy Transition Concerns
1min read On April 7, 2025, Exxon Mobil's stock dropped by 3.07% in pre-market trading, reflecting investor concerns and market dynamics.
Exxon Mobil's 65,000-tonne/year metal processing unit in Singapore has been shut down due to a cracking fault, primarily affecting the supply of Edge series products. The exact restart time is yet to be determined.
The complexity of the low-carbon energy transition has become more apparent, with global investments in clean energy and energy transition seemingly reaching a low point. This shift is evident in policy adjustments by multiple governments and strategic changes by major oil and gas companies. For instance, shell has announced a new five-year strategy focusing on oil and gas production increases and enhanced shareholder returns. equinor, a Norwegian energy giant, has also reduced its investment in renewable energy by half while increasing oil and gas production. Similarly, Orsted, a Danish wind energy leader, has cut its 2030 investment plans by 30% due to cost and supply chain issues in the offshore wind sector.
Exxon Mobil's CEO, Darren Woods, has emphasized the company's focus on traditional energy sectors, particularly hydrogen and lithium extraction, rather than entering the wind and solar energy markets. This strategy has been met with market approval, as Exxon Mobil's stock has risen by over 70% since 2019, although it has since experienced some decline. The company's decision to prioritize traditional energy sectors aligns with the broader industry trend of re-evaluating the viability of renewable energy investments.
