Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
Exxon Mobil (XOM) discovered a new material that enhances carbon capture technology, XOM stock is slightly down during the trading session.
Exxon Mobil Corporation (NYSE: XOM) stock price went slightly up but then changed its movement direction during the trading session today. At the time of writing, XOM stock was 0.86% down, trading at around $43. It happened as the energy company announced a discovery in the capture of energy emissions.
New discovery. New material. New technology. We’re researching a promising advancement in capturing industrial CO2 emissions. @UCBerkeley @UCB_Chemistry Learn more: https://t.co/0qNG0PGlT1 pic.twitter.com/gicWRmHxss
— ExxonMobil (@exxonmobil) July 24, 2020
In a blog post, Exxon Mobil announced that its scientists’ partnership with the University of California, Berkely, and the Lawrence Berkeley National Laboratory had discovered a new material that could absorb CO2 emissions.
The great thing about this material is that it can absorb up to 90% of the Carbon Dioxide generated from industrial sources. The material needs less energy in its carbon capture process.
XOM Stock Price Changes Its Direction as Exxon Mobil Presents Its New Discovery
The patent-pending materials (tetraamine- functionalized metal-organic frameworks) are six times more effective than regular amine-based carbon capture technology. Scientists have been able to reduce the surface area of the material exponentially. One gram of condensed material can hold up to a football field in terms of space.
Vijay Swarup, vice president of research and development at Exxon Mobil Research and Engineering Company said:
“Through collaborations with strong academic institutions and national labs like UC Berkeley and the Lawrence Berkeley National Laboratory, we are developing a portfolio of lower-emissions energy solutions.”
This development indicates Exxon Mobil Corporation’s commitment to carbon capture technology. The energy company is the clear leader in this regard. Its pioneering activities started in the 1970s. It has also invested $10 billion in this field since 2000.
It may seem ironic that an energy company will be investing in carbon capture technology. But it serves as a reminder that companies may change their line of business and keep their names. Exxon Mobil as a company has the sort of business model that will see it going strong for years to come.
The company is leading the charge when it comes to a recovery in the oil industry. The COVID-19 pandemic has sent things into a tailspin. Commodity prices slid to new lows. There is no end to sight to the pandemic. The world is adjusting to the new realities.
One of those realities is the fact that Exxon Mobil (XOM) stock is a good buy at this time.
Management Intends to Continue Paying Dividends
Its management has made its position on dividends known. It intends to continue paying dividends no matter the odds. With a dividend yield of slightly below 8%, this creates a buy scenario at current price levels. The company also aims to cut costs. It will keep expenses marginal as the global economy struggles to recover.
In terms of recovery, sources say that the International Energy Agency (IEA) has painted a bleak picture of the second half of the year.
Sources say that recovery in the last months of this year will be fraught with risks. It puts Exxon Mobil and other energy companies on their toes. That is a situation that the end of the current pandemic can solve.