The Oil Crisis Is Here to Last. Energy Executives Prepare for Impact.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy XOM?
Source: Barron's
Current State of the Energy Industry: The energy industry is facing challenges in returning to its pre-Iran War conditions, indicating a prolonged period of instability.
High Oil Prices: Oil prices are expected to remain elevated, potentially lasting until 2027, impacting global markets and economies.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 163.260
Low
114.00
Averages
132.17
High
158.00
Current: 163.260
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SBM Offshore Secures ExxonMobil Contracts for Longtail FPSO
- Contract Signing: SBM Offshore has secured contracts with ExxonMobil Guyana for front-end engineering and design (FEED) studies related to a floating production, storage, and offloading vessel (FPSO), marking the release of funds to initiate FEED activities and demonstrating mutual trust and commitment in their collaboration.
- Production Capacity: The FPSO is designed to handle up to 1.2 billion standard cubic feet (bscf) of gas per day and is expected to produce approximately 250,000 barrels per day (bpd) of condensate, addressing the market's demand for high-efficiency gas handling capabilities and enhancing SBM's competitive position in the sector.
- Project Implementation: The FPSO will be spread-moored in approximately 1,750 meters of water and will provide roughly two million barrels of condensate storage capacity, with successful implementation significantly supporting ExxonMobil's long-term energy development strategy.
- Local Development: SBM Offshore plans to advance local content development by engaging local fabrication resources and integrating Guyanese engineers into project delivery and operational teams, leveraging experience gained from FPSOs like Liza Destiny to enhance project delivery capabilities.
See More
Indian Government Cuts Fuel Taxes Amid Energy Crisis
- Fuel Tax Cuts: The Indian government has reduced central excise duties on petrol and diesel by 10 rupees ($0.11) each to mitigate losses of 24 rupees per liter for petrol and 30 rupees for diesel, aiming to protect consumers from rising prices amid global energy supply disruptions due to the Iran war.
- Increased Fiscal Pressure: While the government absorbs rising energy costs to maintain retail prices, this decision exacerbates the fiscal deficit, particularly as domestic demand weakens, potentially leading to higher inflation and tempered economic growth.
- Deteriorating Macroeconomic Indicators: HSBC's Purchasing Managers' Index indicates that private sector activity in India fell to its lowest level since October 2022 in March, reflecting pressures from weak domestic demand and cost inflation nearing a four-year high.
- Downgraded Economic Growth Outlook: According to Renaissance Investment Managers, if oil prices stabilize at $85-$95 per barrel post-conflict, India's economic growth could be trimmed from 7.2% to 6.5%, resulting in capital outflows of $40 billion to $50 billion, exceeding 1% of India's GDP.
See More
Trump Extends Pause on Attacks Against Iran's Energy Facilities
- Attack Pause Extended: President Trump has extended the pause on potential U.S. attacks on Iranian energy facilities until April 6, warning Iranian negotiators to take negotiations seriously soon, as failure to do so could have dire consequences, which may impact market confidence in the region.
- Oil Price Fluctuations: Oil prices fell in early trading on Friday, with Brent and WTI on track for their steepest weekly drop in six months due to market skepticism about the peace talks, potentially affecting the stock performance of energy-related companies.
- Troop Deployment: The U.S. is preparing to send approximately 3,000 troops to the Middle East, raising speculation about a possible ground attack on Iran, which could escalate regional tensions and influence global market sentiment.
- Legal Developments: A federal judge in San Francisco granted a preliminary injunction to Anthropic against the Trump administration, ruling that the government's blacklisting of the company may constitute illegal retaliation under the First Amendment, which could affect the relationship between the tech industry and the government.
See More
The Oil Crisis Is Here to Last. Energy Executives Prepare for Impact.
Current State of the Energy Industry: The energy industry is facing challenges in returning to its pre-Iran War conditions, indicating a prolonged period of instability.
High Oil Prices: Oil prices are expected to remain elevated, potentially lasting until 2027, impacting global markets and economies.
See More
Oil Prices Drop as Iran Allows Tankers Passage
- Oil Price Decline: International benchmark Brent crude futures fell by 1.92% to $105.94 per barrel, while U.S. West Texas Intermediate futures dropped 1.76% to $92.82 per barrel, indicating a potential easing of supply concerns in the market.
- Iran's Goodwill Gesture: President Trump stated that Iran allowed 10 oil tankers to pass through the Strait of Hormuz as a 'gift' to the U.S., suggesting a possible thaw in tensions, although analysts warn that the market remains vulnerable to volatility.
- Monitoring Market Dynamics: The situation in the Strait of Hormuz is critical for global crude flows, and while isolated shipments may resume, the overall oil market is still fragile, lacking the capacity to absorb further shocks effectively.
- Supply Disruption Assessment: Rystad Energy estimates that nearly 17.8 million barrels per day of oil and fuel flows have been disrupted in the Strait of Hormuz, with total liquid losses nearing 500 million barrels, highlighting the market's sensitivity to supply interruptions.
See More
Iran War's Escalating Impact on Global Economy
- Market Impact from Oil Surge: The ongoing Iran war has led to rising oil prices, causing U.S. stock indexes to fall again, with market participants expressing skepticism towards Trump's optimistic outlook, indicating growing concerns about future economic conditions.
- Strait of Hormuz Developments: Trump noted that Iran allowed 10 oil tankers to pass through the Strait of Hormuz this week as a 'gesture of goodwill' towards the U.S., although Iran has not publicly commented, highlighting the delicate nature of the situation.
- Shipping Legislation Impact: Iran is preparing legislation to impose tolls on ships passing through the Strait of Hormuz, which could further affect global shipping costs and increase uncertainty in international trade.
- OECD Economic Forecast Downgrade: The OECD predicts that the UK will be the most affected developed economy by the Iran war, forecasting inflation to reach 4% this year and downgrading growth expectations for 2026 to 0.5%, reflecting the war's profound economic implications.
See More
SBM Offshore Secures ExxonMobil Contracts for Longtail FPSO
- Contract Signing: SBM Offshore has secured contracts with ExxonMobil Guyana for front-end engineering and design (FEED) studies related to a floating production, storage, and offloading vessel (FPSO), marking the release of funds to initiate FEED activities and demonstrating mutual trust and commitment in their collaboration.
- Production Capacity: The FPSO is designed to handle up to 1.2 billion standard cubic feet (bscf) of gas per day and is expected to produce approximately 250,000 barrels per day (bpd) of condensate, addressing the market's demand for high-efficiency gas handling capabilities and enhancing SBM's competitive position in the sector.
- Project Implementation: The FPSO will be spread-moored in approximately 1,750 meters of water and will provide roughly two million barrels of condensate storage capacity, with successful implementation significantly supporting ExxonMobil's long-term energy development strategy.
- Local Development: SBM Offshore plans to advance local content development by engaging local fabrication resources and integrating Guyanese engineers into project delivery and operational teams, leveraging experience gained from FPSOs like Liza Destiny to enhance project delivery capabilities.
See More
Indian Government Cuts Fuel Taxes Amid Energy Crisis
- Fuel Tax Cuts: The Indian government has reduced central excise duties on petrol and diesel by 10 rupees ($0.11) each to mitigate losses of 24 rupees per liter for petrol and 30 rupees for diesel, aiming to protect consumers from rising prices amid global energy supply disruptions due to the Iran war.
- Increased Fiscal Pressure: While the government absorbs rising energy costs to maintain retail prices, this decision exacerbates the fiscal deficit, particularly as domestic demand weakens, potentially leading to higher inflation and tempered economic growth.
- Deteriorating Macroeconomic Indicators: HSBC's Purchasing Managers' Index indicates that private sector activity in India fell to its lowest level since October 2022 in March, reflecting pressures from weak domestic demand and cost inflation nearing a four-year high.
- Downgraded Economic Growth Outlook: According to Renaissance Investment Managers, if oil prices stabilize at $85-$95 per barrel post-conflict, India's economic growth could be trimmed from 7.2% to 6.5%, resulting in capital outflows of $40 billion to $50 billion, exceeding 1% of India's GDP.
See More
Trump Extends Pause on Attacks Against Iran's Energy Facilities
- Attack Pause Extended: President Trump has extended the pause on potential U.S. attacks on Iranian energy facilities until April 6, warning Iranian negotiators to take negotiations seriously soon, as failure to do so could have dire consequences, which may impact market confidence in the region.
- Oil Price Fluctuations: Oil prices fell in early trading on Friday, with Brent and WTI on track for their steepest weekly drop in six months due to market skepticism about the peace talks, potentially affecting the stock performance of energy-related companies.
- Troop Deployment: The U.S. is preparing to send approximately 3,000 troops to the Middle East, raising speculation about a possible ground attack on Iran, which could escalate regional tensions and influence global market sentiment.
- Legal Developments: A federal judge in San Francisco granted a preliminary injunction to Anthropic against the Trump administration, ruling that the government's blacklisting of the company may constitute illegal retaliation under the First Amendment, which could affect the relationship between the tech industry and the government.
See More
The Oil Crisis Is Here to Last. Energy Executives Prepare for Impact.
Current State of the Energy Industry: The energy industry is facing challenges in returning to its pre-Iran War conditions, indicating a prolonged period of instability.
High Oil Prices: Oil prices are expected to remain elevated, potentially lasting until 2027, impacting global markets and economies.
See More
Oil Prices Drop as Iran Allows Tankers Passage
- Oil Price Decline: International benchmark Brent crude futures fell by 1.92% to $105.94 per barrel, while U.S. West Texas Intermediate futures dropped 1.76% to $92.82 per barrel, indicating a potential easing of supply concerns in the market.
- Iran's Goodwill Gesture: President Trump stated that Iran allowed 10 oil tankers to pass through the Strait of Hormuz as a 'gift' to the U.S., suggesting a possible thaw in tensions, although analysts warn that the market remains vulnerable to volatility.
- Monitoring Market Dynamics: The situation in the Strait of Hormuz is critical for global crude flows, and while isolated shipments may resume, the overall oil market is still fragile, lacking the capacity to absorb further shocks effectively.
- Supply Disruption Assessment: Rystad Energy estimates that nearly 17.8 million barrels per day of oil and fuel flows have been disrupted in the Strait of Hormuz, with total liquid losses nearing 500 million barrels, highlighting the market's sensitivity to supply interruptions.
See More
Iran War's Escalating Impact on Global Economy
- Market Impact from Oil Surge: The ongoing Iran war has led to rising oil prices, causing U.S. stock indexes to fall again, with market participants expressing skepticism towards Trump's optimistic outlook, indicating growing concerns about future economic conditions.
- Strait of Hormuz Developments: Trump noted that Iran allowed 10 oil tankers to pass through the Strait of Hormuz this week as a 'gesture of goodwill' towards the U.S., although Iran has not publicly commented, highlighting the delicate nature of the situation.
- Shipping Legislation Impact: Iran is preparing legislation to impose tolls on ships passing through the Strait of Hormuz, which could further affect global shipping costs and increase uncertainty in international trade.
- OECD Economic Forecast Downgrade: The OECD predicts that the UK will be the most affected developed economy by the Iran war, forecasting inflation to reach 4% this year and downgrading growth expectations for 2026 to 0.5%, reflecting the war's profound economic implications.
See More
