Oil giants Chevron (CVX -0.46%) and ExxonMobil (XOM -0.71%) can read the writing on the wall: They can see that fossil fuels will eventually go extinct. That's leading these energy giants to invest in expanding into lower-carbon energy. One area both oil stocks are expanding into is lithium, a key ingredient for making batteries for electric vehicles (EVs). Exxon entered the sector in 2023 by acquiring land in Arkansas' Smackover Formation, which is rich in lithium brine. Chevron is now following in Exxon's ...

XRG to consider investing up to $500 million for the development of 1PointFive’s 500,000 tonne-capacity DAC facilityHOUSTON, May 16, 2025 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) and its subsidiary 1PointFive today announced an agreement with XRG, ADNOC’s investment company, to evaluate a potential joint venture to develop a Direct Air Capture (DAC) facility in South Texas. As part of the joint venture, XRG will consider investing up to $500 million for the development of a DAC facility designed to captur ...

Core Viewpoint - The oil market is experiencing turbulence with prices dropping over 15%, impacting many producers but not ExxonMobil, which is well-prepared for such conditions [1][2]. Group 1: Current Market Conditions - Oil prices have fallen significantly, with Brent crude dropping closer to $60 a barrel from a range of $75 to $85 [1]. - The uncertainty in the oil market is causing volatility and raising concerns about slower economic growth, compounded by potential increased OPEC supply [4]. Group 2: ExxonMobil's Preparedness - ExxonMobil has strategically positioned itself to thrive in volatile markets, boasting a low cost of supply, a strong balance sheet, and a lean cost structure [5]. - The company has achieved a 7% net leverage ratio, the best among international oil companies and large-cap industrial firms [5]. - Since 2019, Exxon has reduced structural costs by $12.7 billion, a level unmatched by other international oil companies [5]. Group 3: Long-term Strategy and Investments - Despite short-term uncertainties, ExxonMobil's long-term fundamentals remain strong, with ongoing investments in low-cost oil and gas projects [8]. - The company plans to invest approximately $140 billion into major projects and its Permian Basin development by 2030, expecting to generate $20 billion more in earnings and $30 billion more in cash under constant prices and margins [9]. - Exxon aims to achieve $18 billion in structural cost savings by 2030, with nearly $13 billion already secured [10]. Group 4: Future Outlook - The company is focused on building lower-carbon energy platforms, which will help reduce earnings volatility and generate predictable revenues from long-term contracts [9]. - ExxonMobil's strategy positions it for meaningful earnings and cash flow growth, making it a strong candidate for long-term investment despite market volatility [11].