Crude oil prices have surged above $90 a barrel and some analysts predict they will nudge above $100 by year's end. But instead of spending big to boost output, companies are boosting dividends or buying back shares to reward investors.
CEO Darren Woods said. He said oil and gas reserves are depleting at 5-7% annually, and output will decline if companies stop investing to replace them. Major consumers, including the United States and the European Union, have also adopted ambitious policies to accelerate the transition from fossil fuels to cleaner energy sources as they seek to deliver on emissions reduction pledges made under the Paris Agreement, a global pact to fight climate change.
"We're going to get to a certain point this decade where the adoption of renewable energy, electric vehicles and heat pumps is going to start persistently eating away at demand," he said.