Exxon's Stubbornness Problem

While the Obama administration gears up to drastically shift the energy market energy away from fossil fuels, Exxon Mobil has its head in the sand. If the company doesn't see the light, and soon, it may miss the window to adapt—a window that every other oil company has at least opened: BP, Shell, Chevron, and ConocoPhillips have all diversified into forms of renewable energy. Exxon, which has scorned its rivals for such advances, put out a recent report predicting a steady increase in global demand for oil, coal and natural gas despite President Obama's pledge to curb it. The president's plan calls for not just a cap and trade program, which could shrink demand for oil by jacking up the price, but also for a drastic reduction in the amount that is imported from the Middle East. Exxon Mobile, which relies on the Middle East for roughly 40 percent of its imported crude, is probably in for a devastating surprise.