ExxonMobil Shares Plummet 3.64% Amid Broad Energy Sector Decline

ExxonMobil (XOM) shares fell by 3.64%, reaching their lowest intraday price since June 2024.

On Tuesday, September 10, U.S. energy stocks experienced a broad decline, with ExxonMobil dropping by 3.65%, Chevron decreasing by 1.48%, ConocoPhillips falling by 1.52%, Schlumberger down by 2%, and Occidental Petroleum declining by 1.1%.

In response to storm conditions, ExxonMobil has shuttered its Hoover oil platform in the Gulf of Mexico.

ExxonMobil's Vice Chairman and President of China Natural Gas Operations, Mrs. Gu Zishan, addressed the forum, sharing the company’s efforts and insights on developing a circular economy and tackling climate change. She emphasized the need for unprecedented innovation and large-scale collaboration to achieve net-zero emissions without causing economic hardship or market disruption due to energy and product shortages. This balance is crucial for both enhancing energy security and making significant progress in energy transition.

In alignment with this challenge, the world's two largest economies are taking proactive measures. On November 14, 2023, the U.S. and China issued a joint statement underscoring the importance of developing a circular economy and improving resource efficiency to address the shared challenge of climate change.

ExxonMobil's dedication lies in fulfilling society's demand for energy and essential products. Plastics, for instance, play a significant role in society due to their lightweight, versatile, and durable nature, often being preferred over alternatives like paper, aluminum, or glass. The company employs chemical recycling processes to convert plastic waste into basic molecules, which are then used to create new plastics, transportation fuels, and other products. This technology boosts recycling rates and supports a circular economy on a global scale. ExxonMobil aims to increase its global chemical recycling capacity to over one billion pounds annually by 2027.

Alongside these efforts, ExxonMobil is also championing a thoughtful energy transition, reducing both its and others' greenhouse gas emissions. Carbon Capture and Storage (CCS) and Carbon Capture, Utilization, and Storage (CCUS) are recognized as large-scale CO2 emission reduction technologies, particularly in industries like steel, petrochemicals, and cement. ExxonMobil established its Low Carbon Solutions business in 2021, initiating low-carbon projects in China in 2022, focusing on developing comprehensive CCS, hydrogen, and lithium value chains for hard-to-decarbonize industries. Since 2022, ExxonMobil has been working with the Guangdong Province Development and Reform Commission and industry partners to explore the feasibility of CCS projects to reduce CO2 emissions at the Daya Bay Petrochemical Industrial Park. The company anticipates advancing the Daya Bay CCS project with support from both U.S. and Chinese governments under the "Sunshine State" initiative.

Government support policies and technological advancements play a critical role in accelerating low-emission solutions. This is why ExxonMobil actively engages in global climate-related policies, including collaborations with the Intergovernmental Panel on Climate Change (IPCC). China’s "3060" targets require both long-term and short-term solutions. Compared to coal, natural gas reduces greenhouse gas emissions by up to 60% and significantly minimizes air pollutants. The combination of natural gas and renewable energy offers an ideal solution for reducing emissions and lowering power generation costs. Coal-to-gas conversions can immediately decrease CO2 emissions with existing technology.

ExxonMobil remains committed to practical policy solutions that balance the growing global demand for affordable, reliable energy with the scaling of low-emission technologies. The company will continue to contribute to U.S.-China cooperation in circular economy, CCS/CCUS, and coal-to-gas transitions.