Engine No. 1 Activist Presentation Deck
ExxonMobil's Position on Power Generation
Wide Range Of Alternate Power Generation Demand Scenarios Underscores Risks To
ExxonMobil's Narrowly-focused Long-term Strategy
• The world power generation mix may be
radically different in 20 years
●
ExxonMobil's 2040 projections regarding the
contribution from Solar, Wind and Hydropower,
however, assume the world will continue along
its present path
• However, even natural gas, which is generally
assumed to face less immediate demand
decline than oil, faces long-term risk
"Falling prices for wind and solar power, coupled with
government and businesses' new green goals, are accelerating
a shift to cleaner energy and leaving natural gas - long seen by
energy companies as a bridge between fossil fuels and
renewables - in the lurch. The fuel is also under growing
scrutiny for methane leaks, leading some potential customers
to skip gas and move ahead to lower-carbon alternatives...
That is a risk for Shell and rivals such as Exxon Mobil Corp.
and Total SE, which also invested in gas, given that gas projects
typically cost billions up front and take decades to recoup that
investment." - Wall Street Journal, March 27, 2021
2040 Projected Electricity Generation Mix
80%
70%
60%
50%
40%
30%
20%
10%
0%
25%
4%
5%
16%
2019
Hydropower
23%
Quote Source: Sarah McFarlane (Mar. 27, 2021). As the Shift to Green Energy Speeds Up, Shell's Big Natural-Gas Bet Is at Risk. Wall Street Journal.
Chart Source: 2019, IEA STEPS & IEA Sustainable Development Scenario data from World Energy Outlook 2020. BNEF data from Bloomberg's New Energy
Outlook 2020. ExxonMobil data from its last published energy outlook 2019 Outlook For Energy (Page 48). 'Other' is mainly Bioenergy and Geothermal.
10%
6%
7%
2040 Projections
Wind
60%
18%
28%
14%
47%
18%
14%
15%
71%
ExxonMobil BNEF IEA STEPS IEA
32%
Solar / Other
22%
17%
Sustainable
Development
Scenario
REENERGIZE
EXXON//
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