‘‘Oil Will Be Required For A Long Time,’’ According To Shell President Marvin Odum
Shell Oil Company President, Marvin Odum, said that oil will be needed for a long time. The comments assumes importance and should be a boost to the stocks of Exxon Mobil Corporation (NYSE:XOM), as well as, Chevron Corporation (NYSE:CVX). The comments come on the backdrop of different governments encouraging alternate energies thus dampening the sentiments on oil stocks.
Investments Not Stopped
The steep drop in worldwide oil prices have forced the oil companies like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) to slash their capital expenditure. The period of CAPEX cut ranges from the current year to 2019. That does not mean that investments have been stopped completely in the oil sector. According to Odum, the US needs Oil continuously even as it transforms to a more renewable energy.
Shell Oil is engaged in exploratory drilling in the last two years. With six wells, the company is hoping to confirm a big oil reservoir. The company indicated that it would apply for production permits if it finds oil and move it to Alaska shore by undersea. It will then move to overland in northern Alaska and to the trans-Alaskan pipeline. The company believes that it will take a decade. The comments show the company continues to take a longer range view.
Environmentalists Favor Green
World leaders are discussing climate changes due to the emission as a result of the oil to some extent. Therefore, different government and environmentalists encourage renewable energy even for vehicles. As a result, there is a solid demand for electric vehicles.
Currently, oil companies like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) suffer not because of renewable energy but because of the weak demand. However, shale gas contributed to the slackening of demand for oil. One of the biggest economies, China is struggling for growth rate. The renewable energy will not likely to reach the level that might push oil into backseat at least in the next couple of decades.
Latest posts by Viraj Shah (see all)
- Tesla Motors Inc (NASDAQ:TSLA)’s Elon Musk Is Going After Semi Truck Industry - November 17, 2017 04:37 AM PST
- Tesla Motors Inc (NASDAQ:TSLA) Is Not “Hotbed for Racist Behavior” - November 15, 2017 06:58 AM PST
- Nikola Tesla and Tesla Motors Inc (TSLA) – The Past & Future of the World You Cannot Ignore- Part 1 - May 15, 2017 05:11 AM PST