Exxon Mobil is the largest company in the American Energy sector and has a good chance to dominate the twilight phase of carbon-intensive Energy while also helping reduce emissions. Exxon Mobil plays a vital role in solving climate change through natural gas and cost-cutting measures.
The favorable trajectory in oil prices is a boon for ExxonMobil's upstream operations. In the Permian Basin – the most prolific oil and gas resource in the United States – and offshore Guyana, ExxonMobil has a solid pipeline of profitable projects.
For me, I think Exxon has several strengths that smaller energy companies don't have:
- The company is a massive integrated oil major which gives it natural diversification and the ability to access levels of capital, and scopes of projects that are simply not available to most peers.
- The firm was recently the subject of aggressive board action from environmentalists. While the firm benefits from an improved environmental image and a credible carbon-friendly strategy, it also benefits from the aggressive actions of more truculent management teams in the past.
- The firm has some of the most viable alternative energy projects, a massive refining capacity with improving economics, and a stellar management team with a proven capacity to reward shareholders through some of the toughest cycles in Energy's history.
- Massive growth opportunities through M&A and upstream strategy. The augmentation of reserves in the Permian and in Guyana gives the firm a key competitive advantage over more passive rivals.
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