ExxonMobil Singapore’s Post

Here we go... A recent Bloomberg article highlights a growing trend in the energy market: since 2015, investments in Latin America have skyrocketed. Majors like ExxonMobil, Shell, and BP are committing close to $127 Billion until 2029. Let's think together. Why is Latin America suddenly in the spotlight? It’s not just luck. For years, regions like the US, Gulf of Mexico, Middle East, Russia, India, and China have dominated energy production. Now, Latin America is emerging as the last frontier of significant discoveries in the past decade, notably Brazil’s pre-salt fields. This is not just a reason for pride but also for deep reflection. We’re attracting investments not because we have the safest commercial, legal, or technological conditions, but because the world's remaining oil reserves are here. Why the Interest? (1) Underexplored Basins: Our sedimentary basins, especially in deep and ultra-deep waters, are largely untapped, holding significant hydrocarbon and gas reserves. (2) High ROI: The cost of operations here is competitive, and investors are keen on quick returns. (3) Energy Security and Sustainability: With the global push for sustainable energy, companies are balancing between fossil fuel production and clean energy financing. Reflecting on the Future As for myself, I mean, us our role is to not only report but also understand the underlying reasons for these trends. We need to contemplate: 🤔How will Latin America transform, sitting on such rich resources? 🤔Can we manage these investments for societal benefits, employment, and development? 🤔Are we ready to overcome corruption and manage the resources wisely? Countries like Brazil and Argentina are positioning themselves as key players in the global oil and gas market. But the challenge lies in pragmatically discussing our differences and protecting our natural resources while fostering development. Let’s celebrate global attention for the right reasons and work towards investments that truly transform lives. After all, the ultimate goal of energy should be to improve everyday lives, providing something as simple yet essential as a hot shower at the end of the day. Source: https://lnkd.in/dxMEMq7F #Energy #LatinAmerica #Investment #OilAndGas #Sustainability #EnergySecurity #FutureEnergy #GlobalMarket #EconomicDevelopment #CleanEnergy #Innovation #Brazil #Argentina

According to my colleague Fraser McKay "Geopolitical tensions, a record year for elections and economic uncertainty will provide the backdrop to 2024". These are our global upstream key five themes for 2024: 1. Upstream investment will plateau 2. Project delivery will test supply chain relationships 3. M&A will focus on scale and improving asset performance 4. Some decarbonisation gains will reverse in 2024 5. US Lower 48 oil supply will enter a new type of growth phase Read more here and get a deeper dive into your key regions of interest. https://lnkd.in/esPERySU Upstream Service customers can access the report here: https://lnkd.in/eNv2DRJE

🌎 The Resilience of the U.S. Oil and Gas Industry: A Global Perspective 🌎 As we observe the American oil and gas industry, it’s fascinating to see how it continues to thrive: Record Production and Exports: The United States has become a behemoth in the global energy market. Thanks to innovative drilling techniques like hydraulic fracturing, the U.S. now leads the world in both oil and natural gas production. This energy revolution has not only driven economic growth but also positioned the U.S. as a significant exporter of energy resources. Job Creation and Economic Impact: Abundant energy translates to job opportunities. Skilled workers across the country contribute to economic prosperity. From offshore platforms in the Gulf of Mexico to shale fields in Texas, communities benefit from the industry’s presence. It’s a testament to the resilience of American workers and businesses. Energy Security: The U.S. journey toward energy independence is commendable. By reducing reliance on foreign oil, the nation enhances its security and reduces geopolitical risks. The ability to meet domestic energy needs is crucial, especially during uncertain times. Technological Innovations: The industry’s commitment to research and development is impressive. Whether it’s improving extraction methods or exploring carbon capture technologies, American companies are at the forefront of innovation. These advancements benefit not only the U.S. but also the global energy landscape Balancing Sustainability: While acknowledging the importance of fossil fuels, the industry is actively working to reduce its environmental footprint. Responsible practices and investments in cleaner technologies demonstrate a commitment to sustainability. It’s a delicate balance, but progress is evident. #energyleadership #globalenergy #oilandgasinnovation #sustainablefuture #resilientindustry

⛽️ Western oil majors’ transition strategies will be put to test in 2️⃣0️⃣2️⃣4️⃣ The difference in valuations between 🇺🇸 supermajors ExxonMobil & Chevron on the one hand and European ones Shell, bp and TotalEnergies on the other has been very pronounced and caught the attention 👁️ of many value investors. An important aspect for the valuation differential has been the different production profile and stance towards the energy transition. As Energy Intelligence assesses the sector in their 2024 Outlook which just got published: "Investors are looking for clear strategies that profitably address near-term energy security concerns and longer-term decarbonization goals in 2024. The industry will need to remain focused on building scale, strengthening balance sheets, reducing costs and maintaining strong shareholder returns, while also creating greater portfolio resiliency, expanding low-carbon businesses and meeting emissions reductions goals. Recent upstream acquisitions by US majors underscore their bullish long-term outlooks for oil and plans for medium-term output growth, but with flexible volumes. European majors, under investor pressure, have staked out paths more oriented to low-carbon investments, with more moderate production trajectories. We will be monitoring European majors’ commitment to that model in 2024 after Shell and BP scaled back plans in renewable power and other transition businesses amid concerns about returns. How these two improve profitability, narrow the valuation gap with US majors and put a distinctive stamp on strategy are key questions. We also expect stakeholder pressure on Regional Integrated, Independent and NOC peer groups for bolder moves in low-carbon after COP28’s agreement to 'transition away' from fossil fuels. Companies will be expected to show clear progress this year on methane emissions and implementing hydrogen, CCS and other projects." Source: Energy Intelligence 2024 Outlook (+++Opinions are my own. Not investment advice. Do your own research.+++) #markets #investing #money #wealthmanagement #valueinvesting Enjoyed this post? 👍 Like 💬 Comment 💌 Share 🔔 Subscribe My posts focus on the topics of manager selection, special situations investing and asset allocation.

🔗 Insights from ExxonMobil Guyana's President Alistair Routledge at the recent Guyana Business Journal & Magazine & Greater Houston Partnership panel on the sidelines of the Offshore Technology Conference (OTC) 2024. Alistair Routledge's remarks focused on the broader implications of the Oil & Gas sector for Guyana's economic landscape, i.e., investment, sustainability, and long-term strategic growth. He framed the substantial investment in the sector and the broader economic catalyst this represents for the country as a partnership for the future. 🌏 Strategic Investments & Local Development Alistair detailed ExxonMobil's commitment of over $55 billion in Guyana, highlighting this as a "transformational level of investment." Beyond the financial figures, the strategic approach to building industrial capabilities and fostering local businesses stood out. With 1700 local companies now part of the oil sector's ecosystem, this initiative isn't just about oil; it's about setting a foundation for diversified economic growth. 💡Catalyst for Holistic Development The term 'catalyst' was used metaphorically to describe the oil and gas operations, intending to propel the energy sector and "catapult" other sectors towards international competitiveness. This approach ensures that the benefits of today's investments extend far into the future, well beyond the lifespan of oil and gas reserves. 🌱Sustainability and Economic Diversification Routledge articulated a vision that is focused on sustainability and resilience. He advocates using the current oil and gas boom as a springboard for other sectors, preparing Guyana to thrive in a competitive global market. 🤝 A Partnership for the Future The collaborative tone of the conversation underscored Routledge's commitment to partnership with the government and local communities and a focus on inclusive growth and sustainable development. Let’s continue discussing how strategic industries can catalyze broader economic development and what this means for countries like Guyana. #EconomicDevelopment #OilAndGas #SustainableGrowth #LocalContent #InvestmentInGuyana

Why is investment going down in Europe? 🤔 Philippe Ducom from ExxonMobil Europe is explaining this decline and what Europe must do to become an attractive region again 📈 Learn more in our #Agenda4Action https://lnkd.in/eF_-4bwF

The U.S. is currently expanding fossil fuel production, while encouraging poorer countries to phase out fossil fuels AND refusing to finance the transition. 🙃 Meanwhile, the absolute mess that is development financing (a mess made by Global North countries) has left a lot of Global South countries dependent on either fossil fuel companies like Exxon, Shell, and Total or on petrostates and/or their oil companies like the UAE and CNOOC to pay for climate adaptation. This, to me, is the ultimate illustration of the failure of international climate negotiations, that somehow we have ended up in a place where the only way to pay for climate adaptation is to expand fossil fuel development.

This race to the lowest price by Solar and Wind is cannibalizing it's own markets with no money leftover to help the industry play offence or even defense. Where is Solar and Wind when it comes to winning politically? Where are those local and state candidates, those new laws, those wins that follow?

The energy transition faces significant challenges as Shell and BP scale back their climate targets amid rising fossil fuel demand and policy uncertainty. With global oil demand expected to reach 104 million barrels per day by 2025, ExxonMobil and Chevron are prioritising decarbonisation over diversification into renewables. Despite calls from the International Energy Agency for oil majors to allocate 50% of capital expenditure to clean energy by 2030, only 2.5% was spent in 2022. Effective policy incentives and regulatory harmonisation are essential to drive investment in decarbonisation, ensuring these companies significantly contribute to the energy transition. #EnergyTransition #ClimateChange #Sustainability #OilAndGas #RenewableEnergy #Decarbonisation #Policy