Exxon’s Darren Woods says not politics but the economic environment will dictate the approach the industry takes.
The 2024 presidential election is around the corner, with Vice President Kamala Harris and Republican nominee Donald Trump locked in a very close race.
With things continuing to be fluid, market watchers continue to explore how the outcomes will impact policy measures pertaining to industries and sectors.
On Friday, oil giants Exxon Mobil Corp. ($XOM) and Chevron Corp.($CVX) reported above-consensus earnings, helped by higher production.
Exxon CEO Darren Woods, while discussing the quarterly results on his appearance on CNBC, offered his take the impact of the election results on the oil industry. The executive said oil majors have been pretty disciplined to this point, although he agreed that Permian production has increased.
“Our company has been very focused on making sure that every dollar that we spend is productive and we are getting a good return for that dollar invested,” he said.
This drives investment levels by the industry as a whole, he added.
Woods also clarified that not a political change but the economic environment will determine the approach of the industry. “I don’t think there’s anybody out there that’s developing a business strategy to respond to a political agenda,” he said.
Chevron CEO Michael Writhe told CNBC last week the incoming administration should have a “consistent and coherent energy policy.”
“Affordable and reliable energy is essential to keeping inflation at a level that economies can handle — and that’s why we need investments, and we need stable policy to encourage that investment,” he said.
Writhe clarified that Chevron is apolitical and has worked with legislators from both parties.
In mid-September, Writhe made a scathing attack on President Joe Biden’s administration. The president’s “attack on natural gas” and the freeze on new export permits for liquified natural gas terminals had put “politics over progress,” he said.
Trump Vs. Harris: Energy Policy
Both candidates are unanimous in increasing domestic production in a bid to keep prices in check. The divergence is in the approach they plan to take.
Trump wants to increase production by rolling back green regulations that curb oil and gas drilling, and coal mining. The former president often uses the phrase “drill, baby, drill,” signaling his support for increased drilling.
On the other hand, Harris wants to further clean-energy technologies, which would tackle climate change.
The U.S. has been the world’s biggest crude producer for the past six years in a row, the Energy Information Administration said in a report released in March, citing International Energy Administration statistics. Average crude oil production, including condensate, was at 12.9 million barrels per day (bpd) in. 2023.
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