Exxon Mobil Corporation ( XOM ) shares are trading higher on Monday. In its latest global oil outlook, the company stated that it expects crude demand to remain above 100 million barrels per day through 2050.

Exxon’s projected stronger demand supports its ambitious production growth plans, and it projects that oil demand will plateau beyond 2030.

The outlook reflects a natural decline in oil production of about 15% per year, nearly double the IEA’s previous estimate of 8%.

This increase is the result of the world's shifting energy mix toward unconventional sources of oil and natural gas.

Exxon says that, without new investments, global oil supplies could drop by over 15 million barrels per day in the first year, potentially falling to under 30 million barrels per day by 2030, leaving a 70 million barrel daily shortfall.

Exxon projects that electric vehicles will have a minimal impact on long-term global oil demand and adds that “If every new car sold in the world in 2035 were electric, oil demand in 2050 would still be 85 million barrels per day.”

Exxon Economics, Energy and Strategic Planning Director Chris Birdsall told Reuters, “Oil and gas demand have a very, very long runway and will continue to grow over the next few years.”

He added, “Global oil and natural gas supplies would virtually disappear without continued investments.”

“The biggest reason for the change is the shift to more short-cycle unconventional assets.”

As per Reuters report, Exxon’s outlook on global carbon emissions is more cautious than BP p.l.c ( BP ). ‘s , with significant reductions expected post-2029, compared to BP’s mid-decade target.

Exxon plans to produce 4.3 million barrels of oil and gas daily this year—30% more than Chevron Corporation ( CVX )‘s current output—while BP aims to cut its production to around 2 million barrels per day by 2030.

Read: Arbitration To Uncover Hidden Value Of Hess’ Guyana Oil Assets In Exxon Mobil vs. Chevron Dispute: Report

Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund and IShares U.S. Energy ETF ( IYE ) .

Also Read: Exxon Mobil Reduces Staff After Pioneer Merger: Report

Price Action: XOM shares are up 0.63% at $117.05 at the last check Monday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.