Exxon Mobil, Mitsubishi and Nippon Steel Sign MOU to Explore Carbon Capture and Storage Project

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On Thursday, Exxon Mobil ($NYSE:XOM), Mitsubishi, and Nippon Steel, three of the largest companies in the world, declared their plans to explore a carbon capture and storage project. The three firms signed a memorandum of understanding (MOU) to start talks regarding forming value chains for the overseas sequestration of carbon dioxide released from Japanese steel factories, as well as assessing the necessary infrastructure development needed. It is one of the world’s largest publicly traded oil and gas companies and is listed on the New York Stock Exchange (NYSE). Mitsubishi is a Japanese multinational conglomerate with a wide range of businesses including construction and real estate. Mitsubishi has also been researching various renewable energy sources and developing technologies to reduce carbon dioxide emissions. Nippon Steel is the largest steelmaker in Japan and the fourth-largest steelmaker in the world.

Nippon Steel is committed to reducing its carbon dioxide emissions through technological advances, such as using hydrogen instead of coal in the steelmaking process. The collaboration between Exxon Mobil, Mitsubishi, and Nippon Steel demonstrates the companies’ commitment to reducing their carbon footprint and creating a more sustainable future for their customers. The MOU will enable the companies to explore new ways to reduce emissions and create value chains that can help reduce global warming. This is an important step towards a greener future and a more sustainable world economy.

Share Price

This news generated mainly positive media exposure, with Exxon Mobil stock opening at $114.7 and closing at $117.8, up by 4.0% from its prior closing price of 113.2. The project will focus on the development of innovative technologies that capture and store carbon dioxide emissions from Mitsubishi and Nippon Steel’s steelmaking operations. It will also assess opportunities to apply CCS technology at other industrial sites in Japan. Exxon Mobil has extensive experience in CCS technology, having developed it for use in its own oil and gas operations around the world.

In addition, the company has been involved in the development and deployment of carbon capture technologies for the past 10 years. This announcement marks an important step forward for Exxon Mobil’s commitment to reduce emissions and support global efforts to tackle climate change. It also signals the company’s continued commitment to investing in research and development of innovative solutions to reduce emissions from industrial processes. It will be subject to regulatory and other relevant approvals, as well as the successful conclusion of due diligence by all parties. Once the MOU is in place, Exxon Mobil and its partners will begin developing a detailed plan for the project and its implementation. The project is an important step towards reducing emissions in the steelmaking industry in Japan, as well as demonstrating Exxon Mobil’s commitment to sustainability and climate change mitigation. It is also a great example of how three partners from different industries can collaborate to create innovative solutions for a shared challenge. Live Quote…

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VI Analysis

EXXON MOBIL is one of the leading global energy companies and its fundamentals reflect its long term potential. According to the VI Star Chart, EXXON MOBIL is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors interested in such a company may be looking for dividend yield, growth opportunities, and medium asset and profitability. In terms of health score, EXXON MOBIL has a score of 10/10, indicating that it is capable of sustaining future operations in times of crisis. The company’s ability to grow organically and through mergers and acquisitions has made it a reliable choice for investors looking for a solid long-term investment. The company has also invested heavily in research and development, enabling it to remain at the forefront of the energy industry. Furthermore, its expansive global network and strong brand recognition have enabled it to remain a leader in its field. Overall, EXXON MOBIL is an attractive investment option for those looking for long-term growth, reliability and stability. It has consistently delivered solid financial performance and has the potential to continue doing so in the future. More…

VI Peers

The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.

– Chevron Corp ($NYSE:CVX)

Chevron is an American energy company with a market cap of 313.46B as of 2022. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation. Chevron’s return on equity was 16.97% as of 2022.

– BP PLC ($LSE:BP.)

HSBC Holdings plc is a British multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s fourth-largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion. HSBC traces its origin to a hong in Hong Kong, and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991. The last surviving member of the Hong Kong banking conglomerate, The Hongkong and Shanghai Banking Corporation Limited, was renamed HSBC Holdings plc in May 1999.

As of March 2018, HSBC is organized into four business groups: Commercial Banking, Global Banking and Markets, Retail Banking and Wealth Management, and HSBC Holdings. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange, and is a constituent of the Hang Seng Index and the UK FTSE 100 Index. As of 6 July 2012, it had a market capitalization of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris, and the Bermuda Stock Exchange.

In 2015, HSBC was investigated by the US Senate for allegedly facilitating money laundering for drug cartels and terrorist groups. The allegations date back to 2002 and HSBC’s involvement with Mexican drug lord Osiel Cárdenas Guillén. On 11 December 2015, HSBC agreed to pay US$1.256 billion to settle the charges.

– Hess Corp ($NYSE:HES)

Hess is a leading international independent energy company engaged in the exploration and production of crude oil and natural gas. Hess has a market cap of $37.9 billion as of 2022 and a return on equity of 29.47%. The company has a long history of success in the oil and gas industry, and its operations are primarily focused in the United States, the United Kingdom, Norway, Denmark, Malaysia, and Indonesia. Hess is committed to providing its shareholders with value through a combination of strong operating performance, disciplined capital management, and a commitment to sustainable development.

Summary

Exxon Mobil has recently signed a Memorandum of Understanding (MOU) with Mitsubishi and Nippon Steel to explore a carbon capture and storage project. The MOU has been well received by the media, and the stock price of Exxon Mobil has subsequently increased. From an investment perspective, this MOU presents an opportunity for Exxon Mobil to diversify their portfolio and move towards more sustainable energy initiatives.

The project could lead to long term growth in stock price, potentially increasing investor confidence in the company. It is important for investors to keep an eye on how the project develops in order to make informed decisions about their investments.