by Tsvetana Paraskova at Oil Price
- Exxon CEO Woods: consumers foot the bill of rushed energy transition.
- Exxon CEO: All new cars sold in the U.S. will be electric in 2040.
- Several years of low investment in supply have made energy markets vulnerable to price shocks.
ExxonMobil expects all new cars sold two decades from now to be electric vehicles. But the U.S. supermajor also believes that people will “pay a high price” in this rush to renewables without providing the energy the society currently needs, Exxon’s chief executive Darren Woods told CNBC’s David Faber in an interview last week. Exxon joins many other oil producers who say that governments and policymakers need to balance the drive to lower carbon emissions with the people’s current need for affordable energy. The recent underinvestment in traditional energy sources is a blow to energy supplies, which leads to high prices and record-high gasoline prices, Exxon’s CEO told CNBC. That’s the latest warning from the oil industry that policymakers should look at the short-term energy needs while planning for a low-carbon future.
Sure, it’s not unheard of for a large oil corporation to warn against a rushed transition. Still, the current global energy crisis with record-high gasoline prices vindicates all those executives and officials from Middle East’s oil-producing countries who have been warning for over a year that reduced investment in oil and gas would come back to bite consumers and governments.
After the first COVID lockdowns…
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