Exxon: Oil Will Always Be King

ExxonMobil believes that fossil fuels will continue to dominate the energy market for the next quarter century. The oil baron continues to have its collective head in the sand in under-appreciating the role that wind and solar energy will play, saying that by 2030 they will still represent only 1 percent of all energy, according to Blogging Stocks.

However, at least chairman Robert C. Olsen recognized global warming and realizes that fossil fuels are contributing.

ExxonMobil is basically alone among the energy companies in not diversifying. While Chevron, Shell and BP see alternative energy as a long term opportunity, Exxon is maximizing profits quarter-to-quarter by not investing in research or testing the alternative waters.

If I were an investor, I'd be nervous about Exxon's myopia. If a carbon tax and or carbon cap and trade system (or breakthrough in electric vehicles or solar) occurs, the company could lose much of its value in a hurry.