This is a very cut-and-dry explanation that sells Exxon's future value (and our reliance on petroleum products) way short.
Production of electricity is more efficient than production and refinement of fossil fuels. BUT, Expenditure and distribution of that energy as electricity is less efficient for use as a transportation fuel (as I understand it; correct me if I'm wrong!). This is particularly true for heavy-load transportation like 18-wheelers and industrial applications. Until battery and electric motor technology improves to provide more torque for longer periods of time, fossil fuel will be responsible for moving our STUFF around via diesel motors. The moving of that STUFF still represents the majority of our transportation fuel burned.
Exxon is also a very large investor in electric vehicle battery tech, which will be one of the key technologies to change our transportation reliance from fossil to renewable.
Also don't forget about plastics as a petroleum product; I think it will be some time before we replace plastics as a common building material.
Granted, Exxon only spends ~3% of their profits on research of any sort, which is probably less than their advertising budget, and they spend less in a year on R&D than Google does in a quarter.
I don't really mean to start an argument, and I do hear your point. Exxon is the leader in a dying business. Still, Exxon isn't ignoring the puck. They're probably as aware as anyone where the short-comings of fossil fuel transportation start and stop, and they are as interested as anyone in technology that will upend that industry.
It is more efficient to generate power in a power plant, transmit the energy, then drive a car with it.
This is especially true when you take into account cheaper electricity at night, and regenerative breaking.
The expensive part right now is the upfront cost of lightweight batteries, and the small economics of scale.
But battery technology is continuously improving, so is economics of scale, and electricity production from non-fossil fuel sources.
I'm not saying Exxon is dead, I'm just saying that it is insane to ignore what is right in front of us. If gasoline doubles in price once more (in real terms) then the internal combustion engine is over.
Production of electricity is more efficient than production and refinement of fossil fuels. BUT, Expenditure and distribution of that energy as electricity is less efficient for use as a transportation fuel (as I understand it; correct me if I'm wrong!). This is particularly true for heavy-load transportation like 18-wheelers and industrial applications. Until battery and electric motor technology improves to provide more torque for longer periods of time, fossil fuel will be responsible for moving our STUFF around via diesel motors. The moving of that STUFF still represents the majority of our transportation fuel burned.
Exxon is also a very large investor in electric vehicle battery tech, which will be one of the key technologies to change our transportation reliance from fossil to renewable.
Also don't forget about plastics as a petroleum product; I think it will be some time before we replace plastics as a common building material.
Granted, Exxon only spends ~3% of their profits on research of any sort, which is probably less than their advertising budget, and they spend less in a year on R&D than Google does in a quarter.
I don't really mean to start an argument, and I do hear your point. Exxon is the leader in a dying business. Still, Exxon isn't ignoring the puck. They're probably as aware as anyone where the short-comings of fossil fuel transportation start and stop, and they are as interested as anyone in technology that will upend that industry.