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Darren Woods is the first CEO of Exxon Mobil Corp (NYSE: XOM) to speak with the analyst community in 15 years. Woods broke tradition and spoke with CNBC’s Squawk Box in this exclusive about its results on Friday.
Downstream efficiencies drive big boost in earnings
Important to note is what Exxon did in 2018 to achieve its performance with a full restructuring around its Downstream from a functional model to value chains, allowing for greater efficiency. The company says it is reorganizing its upstream business units in 2019 to drive even more integrated value.
Woods also spoke about Exxon’s confidence it can survive an even lower price environment over the long term.
Joe Kernen, co-anchor of Squawk Box turned the conversation to climate and the desire for balance in the energy mix by consumers.
Woods said “We have evolved with consumer demand. We’re comfortable with this drive and desire to move to lower emissions. The challenge is to find the technology to allow to do that.”
Exxon is demonstrating that commitment and made an announcement last year when it contracted long term agreements with Denmark’s Orsted A/S, to provide wind and solar power in the Permian Basin for its operations.
“But, hydrocarbons will be a part of the mix? It’s cold in the Midwest, I’m glad we are still getting some heat from fossil fuels,” Kernen said after discussing the complexity of the shift from conventional to alternative sources.
“I don’t think people don’t fully appreciate just the size of the energy system all around the world and it’s going to take time, ” Woods added.
Read more here on Exxon’s position on climate. Shares of XOM closed on Friday up 3.6% to 75.92.