Exxon: All oil stocks are going up

- ExxonMobil, the largest oil producer in the US, states that it will produce all its stocks of fossil fuels such as crude oil and gas. The competitor of Shell will look ahead to halfway through this century.

The Financial Times reports this on the basis of research by ExxonMobil.

Governments worldwide switch to sustainable energy from wind and sun. The broadly signed climate agreement of Paris, to which President Trump partly comes back, also requires that emissions from production be reduced by coal and oil production. This should lead to a temperature rise of no more than 2 degrees Celsius.

Even if governments continue to reduce emissions, billions of dollars are still needed in investments in new crude oil and gas production, according to ExxonMobil.

The concern with $ 358.16 billion market value reported an investment of $ 50 billion this week to make this possible.

The decrease in the use of oil in some countries does not detract from this, ExxonMobil assured. There is sufficient demand from emerging economies.

Investors are, however, afraid to stay with 'stranded assets', investments in exploration of oil and gas stocks that ultimately turn out to be worthless. ExxonMobil therefore reacts with its analysis to questions from major shareholders, who together hold 62% of the shares with voting rights, during its annual meeting.

This report strongly resembles statements made earlier by Shell and BP, also on questions from large shareholders.

Last year, ExxonMobil was forced to extract from its books books with proven stockpiles of 3.5 billion barrels from Canadian tar sands. That followed the fall of the oil price to almost $ 27 a barrel. Exxon expects 90% of all stock to be above the ground for 2040.

It counts on a 'significant use of oil and gas until the mid-century', even if the temperature rise is limited to 2C. ExxonMobil supports the Paris agreement for temperature limitation.

In order to replenish the existing stocks, which would be emptied in 2040, 35 billion barrels of crude oil are still needed.

ExxonMobil calculated different scenarios. According to the average scenario, it would be a decrease of 0.4% of production per year, from 95 million barrels per day to 53 million barrels in 2040.