Political Shifts and the Oil Sector: Analyzing the 'Trump Trade'

Regulatory Changes Impacting Oil Sector

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"The company’s oil and gas business may increase or decrease depending upon regulatory or market forces, among other factors." --- (CVX, sec filing, 2024/Q1)

"Excluding the impacts from entitlements, divestments, and higher government-mandated curtailments, net production grew by 77 thousand oil-equivalent barrels per day, mainly driven by Guyana." --- (XOM, sec filing, 2024/Q1)

"And so we're pleased with both of these. There are markets, maybe to your point about economics that are in some ways heavily influenced by government policy, be it the renewable fuel standard and the Low Carbon Fuel Standard, which affect renewable fuels or some of the things in the investment or the inflation reduction act that affect hydrogen." --- (CVX, earning call, 2024/Q1)

"Meanwhile, my members have watched the energy transition in the oil and refining industry result in 75% job loss." --- (XOM, event transcript, 2024/05/29)

"These forecasts reflect estimates of long-range effects from climate change-related policy actions, such as electric vehicle and renewable fuel penetration, energy efficiency standards, and demand response to oil and natural gas prices." --- (CVX, sec filing, 2024/Q1)

Investment Trends in Oil Sector

Chevron and ExxonMobil are significantly increasing investments in both traditional and renewable energy sectors. Chevron's production and capital expenditures have risen, while ExxonMobil is accelerating investments to boost earnings and cash flow. Both companies aim for substantial growth, reflecting a robust investment trend in the oil sector.

"We also grew production more than 10% from the same quarter last year and announced final investment decisions to grow our renewable fuels and hydrogen businesses." --- (CVX, earning call, 2024/Q1)

"a fast transition, we'll accelerate investment in these areas to grow earnings and cash flow." --- (XOM, event transcript, 2024/05/29)

"Capital expenditures totaled $4.1 billion in the first three months of 2024, up $1.1 billion from the year-ago period largely due to higher investments in upstream, including post-acquisition spend on legacy PDC assets." --- (CVX, sec filing, 2024/Q1)

"By executing with excellence on our strategy, we expect to grow our earnings potential by an additional $12 billion from 2023 to 2027 at constant prices and margins, a growth rate of more than 10% per year." --- (XOM, earning call, 2024/Q1)

"We've been in the venture investing business for 1/4 of a century, so going back to the late '90s when we first set up our venture investing organization." --- (CVX, earning call, 2024/Q1)

Technological Advancements in Oil Industry

Technological advancements in the oil industry are driving significant progress. Chevron and ExxonMobil are focusing on innovative technologies to enhance efficiency and sustainability. Chevron highlights achievements in advanced oil technology and renewable fuels, while ExxonMobil emphasizes proprietary technologies and strategic partnerships to improve resource recovery and environmental impact.

"EnerCom Denver - The Energy Investment Conference will once again include The Energy Transition and Emerging Technology Session featuring quick-pitch investment presentations from promising start-up energy and technology companies focused on innovation and operations in alternative energy, advanced oil and gas technology, environmental sustainability and carbon solutions." --- (CVX, press release, 2024/07/17)

"If we can get the technology, if we can develop the technology to a point that we're successful there, that gets us on this path and demonstrates the value of the concepts that we are developing to keep on going and drive further down." --- (XOM, earning call, 2024/Q1)

"We are working to advance a lower carbon future. Our recent achievements across production, technology, and renewable fuels demonstrate our progress." --- (CVX, Twitter, 2024/05/03)

"Combining Pioneer's differentiated Permian inventory and basin knowledge with ExxonMobil's proprietary technologies, financial resources, and industry-leading project execution excellence is expected to generate double-digit returns by recovering more resource, more efficiently and with a much lower environmental impact." --- (XOM, press release, 2024/05/03)

"Beneath the surface of the Permian Basin, vast amounts of oil remain. But, the industry couldn't figure out how to release it." --- (CVX, Twitter, 2024/06/10)

Environmental Policies and Oil Sector

Chevron and ExxonMobil are increasingly focusing on environmental sustainability and carbon reduction. Chevron is innovating with renewable gasoline and improving environmental performance, while ExxonMobil emphasizes that sustainability efforts may not always be material to investors. These actions reflect the oil sector's adaptation to evolving environmental policies.

"EnerCom is currently accepting applications from start-up companies focused on innovation in alternative energy, advanced oil and gas technology, environmental sustainability, and carbon solutions to present at The Energy Transition and Emerging Technology Session at EnerCom Denver." --- (CVX, press release, 2024/06/24)

"Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in our filing with the SEC." --- (XOM, sec filing, 2024/Q1)

"We demonstrated a renewable gasoline last year that delivers performance and could reduce a vehicle's lifecycle carbon dioxide emissions by more than 40%. How does it work? Read on: https://t.co/VgYqv81ux https://t.co/cTa4Bf5L9w" --- (CVX, twitter, 2024/07/18)

"We are dialing back heat to aid in lower carbon progress. Learn how we are working towards improving our environmental performance in our San Joaquin Valley Business Unit: https://t.co/jnsxPxtbqt https://t.co/4d1EDDn1Pz" --- (CVX, twitter, 2024/07/01)