Exxon, Chevron Lack a Certain Je ne Sais Quoi

Oil companies face a slippery path on their energy transition journey. Pivot too quickly to clean energy and valuations fall in anticipation of poor future returns. Budge too little and your board risks getting a revamp by an activist investor (a la Exxon Mobil).

Major European oil companies such as BP , TotalEnergies and Royal Dutch Shell have all taken the fast-track path, pledging to plow more sizable portions of their budgets into renewable energy with so-so returns. Their valuations have slipped accordingly, but investors may have been too quick to judge.

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