Exxon activist investor calls on U.S. shale industry to produce more

(Bloomberg) — The activist investor that forced a board shakeup at Exxon Mobil Corp. to accelerate a move to clean energy is calling on U.S. shale to produce more. 

“The conflict and suffering in Ukraine shouldn’t be prolonged because of reliance on Russian oil and gas,” Christopher James, the founder of Engine No. 1 LLC, wrote in an op-ed for the Wall Street Journal. The first and most immediate step, he said, is to prioritize North American oil production over imports from “less desirable” suppliers. “Our assets in the Permian and other parts of North America should be used now.”

Expanding U.S. oil production should still be aligned with climate goals. The investor argued U.S. producers have the chance to ensure the Permian basin is the world’s “cleanest hydrocarbon source” by setting aggressive emission-reduction targets and slashing methane emissions to near zero. Current oil and gas prices, as well as strong demand, are an opportunity to encourage quick-turnaround, high return projects, while discouraging long-duration, capital-intensive ones with uncertain futures, he added.