Doug Sheridan has posted another must-read article on his LinkedIn page. It's about something I've observed many times: Big Oil is, too often, the enemy of the industry itself. Sheridan captures it perfectly in his post:
In an interview with the WSJ, Exxon CEO Darren Woods said Trump shouldn't pull the US from the Paris climate agreement—something the president-elect did in his frst term, only to see the move reversed under Biden.
"I don't think the stops and starts are the right thing for businesses," Woods said. “It is extremely inefficient. It creates a lot of uncertainty."
Our Take 1: Hmmm... is ExxonMobil’s CEO saying he's cool with US administrations obligating America to hitting the targets of treaties that haven't been ratified by the US Senate and that certain leftist courts have already suggested obligate American entities to legally reduce emissions consistent with the Agreement?
Our Take 2: As far as we can tell, Exxon now has a very low bar for how highly consequential multinational agreements should be implemented in America. Maybe because Exxon is advocating what's best for Exxon... in the form of positive PR that comes with virtue signaling and appearing to push back on Trump, the stable operating environments that benefit it, etc... rather than what's best for all Americans and American businesses? Predictably, Bloomberg is already twisting his words...
Is this the future? Exxon joining hands with its enemies? Image by Grok.
Our Take 3: We wonder, will Exxon be supportive of America having stayed in the Paris Climate agreement if and when a future liberal Supreme Court rules that it, Chevron, Oxy and every other oil and gas company domiciled in the US is legally obligated to reduce their emissions in a manner that courts say is consistent with what the US has supposedly agreed to by staying in the Paris Agreement... or other agreements like it?
Our Take 4: Maybe Exxon should instead be advocating for the passage and embracing of policies and agreements that are broadly supported by *both* political parties... you know, the kind that history has shown aren't overturned with changes in administration? As of now, the company seems to be lazily giving its blessing to political "cram down" tactics. To be honest, we find it strange.
Our Take 5: We've had it with glib execs at US corporations going along with—and even earnestly fighting for—policies and schemes that might enrich their investors, fill their own bank accounts or just their make lives easier in the short term... at the expense of crippling America's long-term future and welfare of the American people. Today's political-corporate complex stinks to high heaven in our opinion. Are we wrong?
No, Doug, you are precisely correct. All our major institutions are corrupted by corporatism and Big Oil is no exception. This is also why Exxon has been vulnerable to Big Lies of the “Exxon Knew” campaign wrought by the Rockefeller family. Exxon seems to imagine it can win by co-opting its enemies. Its enemies know better are are unrelenting. Exxon needs to join the fight and attack instead of trying to weasel itself of the situation.
The first rule of business is focus on the customer? Not pander to government and international policies that absolutely increase cost for your customers.
If I were in the XOM Board we would be calling a special meeting to discuss Woods’ comments and future.
The first rule of business is focus on the customer? Not pander to government and international policies that absolutely increase cost for your customers.