Exxon says it is reevaluating Europe strategy after windfall taxes

Taxation discourage investments, he said. Governments have an important role in the energy transition by incentivating the development of new energy technologies without compromising oil supply to meet the world’s demand, Woods said at a panel during the CERAWeek by S&P energy conference in Houston.

“I think you may be very simply to describe it as carrots versus sticks,” Woods said. “We certainly step back and re evaluate what we are doing in Europe”.

Exxon is increasing investments in the U.S., where the Inflation Reduction Act helped the company launch a new business to help third parties to decarbonize.

“The IRA is obviously very important for your strategy,” Woods said.