Exxon’s Big Boss Just Threw Shade at Trump’s Climate Plans… But is This Just PR Work?

With Trump poised for a second act in the Oval Office, you’d think Big Oil execs would be ordering more oil rigs and doing their Trump dance impression around the C-Suite. 

But Exxon Mobil’s CEO Darren Woods just gave us a surprise twist interview that might have Trump’s energy supporters replaying the video over and over to see if they heard him right.

First things first, Trump and the Paris Climate Accord go together about as well as oil and water. Last time he held office, he yanked the U.S. out of that deal in June 2017 (though it technically didn’t take effect until November 2020, because even international diplomacy has red tape). Now he’s hinted he’ll do it again, and you’d think Exxon, North America’s oil king, would be cheering him on. But nope. Darren Woods, Exxon’s big dog, is telling Trump to slow down with the climate exit. Why? Because this flip-flopping on climate policy is costing them real money.

(Source: Vanity Fair)

Just recently, Darren Woods, Exxon Mobil’s CEO, spoke up on a global stage in Baku, Azerbaijan, at COP29 (a climate summit where oil executives aren’t usually front and center). But Woods was there with a clear message, aimed squarely at the political yo-yo Exxon has been dealing with when it comes to U.S. climate policy. He called out the inconsistency, describing it as “extremely inefficient” and “creating a lot of uncertainty.” I guess he’s not on board with “drill, baby drill.”

Exxon’s stance is simple: they’re in the business of selling oil, but they’re also investing billions in carbon-cutting tech like carbon capture and hydrogen. Why? Because they’ve been kicked around enough by the climate crowd to know the game’s changing. Heck, in 2021, a tiny investment firm grabbed a couple of Exxon board seats after roasting the company for its flimsy climate strategy. Let’s just say Exxon got the memo: adapt or get left in the oil spill.

Trump’s climate plans, however, are practically written by oil wildcatters like Harold Hamm, founder of Continental Resources. Hamm and his crew aren’t exactly “green energy enthusiasts.” Hamm, along with other U.S. frackers, think climate policies are just handcuffs for the oil business. They’re pumped to keep drilling without annoying regulations, while companies like Exxon are playing the long game, knowing there’s serious cash in keeping one foot in the green energy door.

And Woods? He’s got a foot on each side of the fence here. He knows Trump’s advisors would sooner grab a beer with the scrappy U.S. frackers, but he’s reminding everyone that Exxon is still very much in the game. Hinting that trimming oil supply could fatten up prices doesn’t hurt either—especially when Exxon stock has climbed from around $99 to $121 this year. Shareholders are probably nodding along, thinking, “Maybe sticking with Paris isn’t such a bad idea after all.”

As of right now, Woods is standing his ground, saying Exxon isn’t letting “political agendas drive our business decisions.” But you can bet Trump’s incoming team will still lean on deregulation. For now, Exxon’s straddling the line between fossil fuels and the future. And as Trump rolls into office, this tug-of-war between Exxon and the new administration could be interesting. Although let’s be honest, some of this is just PR work. Do you really think Exxon is going to complain when restrictions are lifted and they’re making $10 billion more a year? (yeah, me neither).

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Stock.News has positions in Exxon Mobil.