‘Exxon, once a “perfect machine,” is running dry’

first_img FacebookTwitterLinkedInEmailPrint分享Wall Street Journal:Exxon faces a number of challenges, including investigations of its accounting and tax practices as well as lawsuits by cities and states seeking funds to pay for the effects of climate change. Its biggest problem is one the giant has seldom faced in its 148-year history: It isn’t making as much money as it used to.Under former CEO Rex Tillerson, Exxon bet big hunting for oil in risky, expensive locales like the Russian Arctic. But as oil prices fell, those projects didn’t pay off the way Exxon had hoped. Now the $350 billion Irving, Texas, company is returning to its old ways: big, disciplined spending on prospects that make money at low oil prices.The approach is a gamble in a new era of energy breakthroughs such as fracking and electric vehicles. Many of Exxon’s competitors are transforming their businesses to move away from oil exploration, and have begun to spend carefully and diversify into renewable energy.Investors, who once looked past Exxon’s tendency toward arrogance and secrecy because of its good returns, aren’t sure they want Big Oil to get bigger.“Most investors like Exxon, but they like other companies better,” said Mark Stoeckle, chief executive of Adams Funds, which owns about $100 million in Exxon shares. “The market is not willing to reward Exxon for spending today in hopes that it will bring good returns tomorrow.”More ($): Exxon, Once a ‘Perfect Machine,’ Is Running Dry ‘Exxon, once a “perfect machine,” is running dry’last_img

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