Exxon Mobil and the Challenges of the Energy Transition: A Look into the Future

Exxon and Mobil, two of the largest giants in the oil industry, completed a merger valued at 81 billion dollars 25 years ago. This merger formed Exxon Mobil, the third-largest company worldwide. The then CEO of Mobil, Lucio Noto, emphasized that this merger was based on opportunities, not due to desperation. The changes in the world are undeniable, and simple solutions in the industry belong to the past. Not only has the oil industry changed. Since the late 20th century, the tech industry has developed immensely, and artificial intelligence has caused a rapid increase in power demand. Columbia University's Center on Global Energy Policy estimates that data centers worldwide account for about 0.5% of global electricity demand. AI data centers, in particular, could require about 14 gigawatts of additional power capacity by 2030. Exxon Mobil, as the largest oil and gas company in the United States, is responding to this demand by developing a natural gas-powered power plant. This project, reported by the New York Times, includes technology to capture over 90% of the plant's CO2 emissions. This is the first time Exxon is building a power plant that is not intended for its own use. Dan Ammann, head of the low carbon solutions business at Exxon, explains that this step is driven by market demand. The goal is to have the power plant operational within the next five years, thereby avoiding all challenges related to grid interconnectivity. In the meantime, Exxon Mobil has unveiled its corporate strategy through 2030, promising an additional growth potential of 20 billion dollars in profit and 30 billion dollars in cash flow.