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Exxon Mobil (NYSE:XOM) is reviewing its activities in Europe in view of new windfall profits taxes as it plans to spend more in the U.S., CEO Darren Woods said Tuesday at the CERAWeek by S&P energy conference in Houston.
The CEO slammed Europe’s windfall profit tax on oil and gas producers, saying it drives away investment and undermines energy transition efforts, while praising the Inflation Reduction Act in the U.S.
The tax would wipe out years of profit from recent refining investments, and means Exxon (XOM) expects to pull back future spending in Europe in favor of the U.S., Woods said.
Such policies have created unintended consequences such as countries burning more coal to meet consumers’ energy needs when supplies fell short after the Ukraine war started, the CEO said.
Exxon Mobil (XOM) “has executed brilliantly by expanding its production output counter-cyclically, allowing it to fully benefit from the favorable oil/gas spot prices in 2022,” but it may be time to sell to lock in recent gains, Juxtaposed Ideas writes in an analysis posted recently on Seeking Alpha.