Business

Is Exxon Mobil About to Go Bankrupt?

That might sound crazy. But even oil is a technology that can be disrupted.

Take 10 minutes to read this story in NewCo Shift about how Big Oil will die. The author, Seth Miller, thinks that sales of new cars for individuals will drop to nearly zero by 2023. It’s not as nutty a notion as you might think. 

Comments

  • PeterTx52

    ignores the fact that Big Oil is more than just gasoline
    “Integrated oil firms including Exxon Mobil Corp. and Royal Dutch Shell PLC are racing to take advantage of the cheap byproducts of the oil and gas being unlocked by shale drilling. The companies are expanding petrochemical units that produce the materials eventually used to fashion car fenders, smartphones, shampoo bottles and other plastic stuff being bought more and more by the world’s burgeoning middle classes.”
    https://www.wsj.com/articles/the-shale-revolutions-staggering-impact-in-just-one-word-plastics-1498411792?tesla=y

  • Mavdog

    Except that the percentage of petroleum used for fuel has been declining, currently a bit over 40% of the total, while other uses have increased. There was an article in today’s WSJ discussing the amount of investment in ethylene plants for the manufacture of plastics, and the projected 30% increase in demand for that product.
    As Samuel Clemens famously said, “The reports of my death are greatly exaggerated”.

  • LF Taylor

    Oil can be disrupted, but demand for energy is limited only by price. So while the electric motor and hailing of autonomous cars can reduce today’s consumption of energy, lower prices will stimulate additional quantities of energy demanded (Econ 101). This will especially be true in the developing world. And despite a lot of wishful thinking, solar, wind, nuclear, and hydro-power are not going to be able to take up that slack. If anything, they will be further disadvantaged by falling energy prices relative to fossil fuels.
    Besides, if electric vehicles are so great, why do taxpayers need to subsidize wealthy Tesla owners?

  • RompingWillyBilly

    In the sixties, they predicted we would all be flying around in helicopters by the year 2000. Then they were predicting a paperless society. I had a nightmare the other night that I went shopping at a Walmart and was to stupid to know how to purchase the product.