Business

ExxonMobil CEO Forecasts Record Oil Demand, Global Economic Boom

By Belal Awad · July 29, 2023

Despite falling second-quarter profits, oil behemoth ExxonMobil is bullish about its near-term prospects amid growing global oil demand.

Company Chairman and CEO Darren Woods told CNBC he believes we will soon witness an economic boom that will yield dramatic improvements in living standards worldwide. Energy demand, including gas and oil, will soar in the process.

Woods said, “In the short to medium term, there continues to be a significant demand for oil and the products that come from oil, primarily because the world is growing and economic prosperity is improving all across the world.”

ExxonMobil’s second-quarter earnings of $7.9 billion, or $1.94 a share, are down 56% from a year ago. However, according to Woods, the company’s strategic investments and technological advancements have left it well positioned to capitalize on the impending economic upswing.

Woods stressed the importance of recognizing the global demand for oil beyond developed economies, saying that emerging markets are driving significant growth. “We’ve challenged ourselves to double the recovery that the industry is capable of achieving in the unconventional space. We’ve got technology in the field today that we’re testing, that we think gives us a good chance of doing that,” said Woods, adding, “Our emphasis has always been on continuing to invest in the business and make sure that we’re bringing on competitively advantaged barrels to meet the demands.”

As the world moves towards achieving higher living standards and economic growth, said Woods, ExxonMobil’s focus on investing in the future aligns with the broader energy industry’s challenge of striking a proper balance between meeting increasing energy demands and addressing environmental concerns.