Media Type: Article

This article was written by Jack Balagia, Executive Director, KBH Energy Center, University of Texas at Austin

When I sat down with ExxonMobil CEO Darren Woods at the KBH Energy Center Symposium in Austin earlier this month before a crowd of 600 energy industry professionals and University of Texas students, I was reminded of something seen in leaders across all disciplines: the true test of conviction is not when the wind is at your back, but when the storm is raging.

For Woods, that storm was 2020. ExxonMobil’s stock price plunged to its lowest point in a generation. The company posted its first annual loss in decades. Upstart activist investor Engine No. 1 won seats on the board. And, perhaps most symbolic of all, the company was removed from the Dow Jones Industrial Average after nearly a century. Pundits were openly predicting that Woods, only four years into the job, would soon be shown the door.

It was in that moment, however, that Woods made a choice to hold firm. While others were scaling back investment in oil and gas, he doubled down. “We knew that when the pandemic was over,” he told the packed house, “the demand would pick up again, and the supply wouldn’t be there. Our intent was to be ready when the demand was needed, when it came back, that we had the supply.”

That kind of conviction is rare, particularly in an era when public companies live under the relentless pressure of quarterly earnings and activist shareholders. As Woods described it, “They [Engine No. 1 directors] came in, and I think with an agenda to find a problem. … Rather than moving more towards the electrons or the environmentalist platform, they strengthened the things that we were already doing that made the board even tighter.” To me, that exchange said as much about leadership as it did about ExxonMobil. Woods opened the books, invited scrutiny, and stood by his strategy. Not every CEO would.

Of course, Woods’ positions also spark debate. On climate, for example, he pushed back against what he called a “misperception” that ExxonMobil is not committed to finding solutions. “That is absolutely false,” he said. His view is that meaningful progress requires “involving the people who best understand the energy system,” and he believes hydrocarbons will remain essential well into the future. “You wouldn’t have cell phones, you wouldn’t have electric vehicles, you wouldn’t have laptops, you wouldn’t have medical equipment, you wouldn’t have medicines without hydrogen and carbon molecules.”

That is not a universally popular perspective, especially in environmental circles. But it is one that forces us to confront the complexities of the so-called energy transition. Woods reminded us that emissions, not fuels, are the issue, that innovation in carbon capture, hydrogen, and new materials is happening alongside traditional oil and gas—and that society’s future demands, not government mandates, will ultimately determine the shape of companies like ExxonMobil.

He was particularly blunt on the role of government policies to pick technologies or solutions. “Nobody’s smart enough to do that. Government certainly is not; our company is not.” Instead, he says, “government policies should focus on what you’re trying to achieve, not how best to achieve it.” And he offered a memorable analogy on responsibility for carbon emissions. “The analogy that I used would be like making McDonald’s responsible for the weight of their customers. We can’t do that.”

As an interviewer, what struck me most was not just Woods’ views on the energy business, but his insistence on the universality of leadership principles: clarity of vision, willingness to stand alone, and trust in fundamentals when others are ready to abandon them.

In fifty years, he predicts ExxonMobil will look both familiar and different. “The ultimate shape of our company and the products that we make will be determined by how society evolves and what products or what needs develop in demand. I also believe very firmly that we’ll be in a lot of new markets and new materials, new products and generating very healthy returns on those.”

The interview left the industry crowd thinking less about ExxonMobil specifically and more about the broader lesson. Leaders do not get to choose the crises that define their tenure. They do, however, choose whether to meet those crises with short-term expediency or with long-term conviction.

In 2020, Darren Woods chose conviction. Time will tell what history makes of that decision. But the story he shared with us in Austin is a reminder of the resilience, debate, and innovation that will shape the energy future.

ExxonMobil CEO and Chairman Darren Woods received the Kay Bailey Hutchison Energy Center’s Award for Outstanding Excellence in the Energy Industry at the beginning of the KBH Energy Center’s 2025 Symposium.

Woods has led ExxonMobil since 2017. Under his leadership, the company has increased its production capacity, executed major acquisitions, and embraced advanced energy technologies. He also led an overhaul of the company that made it more efficient.

ExxonMobil has been a committed partner to UT Austin for 50 years, with more than $82 million in total contributions from the company and its foundation to UT Austin for student success initiatives, faculty research, academic programs, and other support. More than 2,500 UT Austin graduates have worked at ExxonMobil.

“I’ve always held a deep respect for the University of Texas – especially for the boldness of its motto: ‘What Starts Here Changes the World.’ At ExxonMobil, we have a similar belief. Every day, our people work to improve lives and living standards through the energy, products, and solutions we provide.”

Woods said he accepted the award on behalf of the 60,000 men and women who work at ExxonMobil. “Their excellence, their dedication, and their innovation define our company. The success I’ve enjoyed in my 33-year career at the company is largely thanks to them and to the great mentors and colleagues I’ve had over the years.”

Woods said it is a “moral imperative” to end energy poverty for the 4 billion people around the world who do not have access to the reliable energy they need. He also identified two truths that will guide the future: the fact that energy is essential, and the fact that the world needs solutions to reduce greenhouse gas emissions.

“All of us at ExxonMobil are aware of our obligation to be good stewards of the legacy we’ve inherited,” he said.

The morning after he received the award, Woods kicked off the KBH Energy Center’s 11th annual Symposium with an on-stage discussion with Jack Balagia, the Executive Director of the KBH Energy Center and the former ExxonMobil Vice President and General Counsel.

This 2025 KBH Energy Center Symposium drew a record crowd, with more than 600 students, energy professionals, and industry leaders in the audience for a full day of panels and interviews. The sessions looked at the energy sector from a variety of perspectives, including the impact of AI, regulatory issues, finance issues, and the relationship between energy and national security.

By Sen. Kay Bailey Hutchison and John Butler

 

The advent of artificial intelligence has raised concerns that the technology will replace millions of human jobs. These concerns are understandable. However, AI is also creating workforce needs each day, which is especially true in the Texas energy sector.

 

The energy sector was already ripe with opportunities for Texans. The rise of AI is expanding those opportunities. That was the clear message at the Energy Symposium hosted by the Kay Bailey Hutchison Energy Center at The University of Texas earlier this month. Some of the most respected voices in the energy business and the academic world described the need to provide power and other infrastructure around enormous data centers as one of several significant opportunities for the energy industry and the students who want to work in it.

 

“This is the most glorious time I can think of to be a student,” Jim Breyer, the founder of Breyer Capital and one of the first foundational investors in Facebook, told our symposium audience. He likened this moment in AI to a football game that has just begun.

 

Other speakers noted that Texas’ competitive marketplace, low regulations and availability of land make our state especially attractive for AI investments.

 

The opportunities for economic and career growth in Texas go well beyond AI. ExxonMobil Chairman and CEO Darren Woods highlighted the fact that 4 billion people around the world lack access to reliable, adequate energy. His company recently released a global outlook that predicts oil and natural gas will still make up half the world’s energy supply by 2050. The outlook also says the biggest change in the world’s energy mix over the next 25 years will be a significant increase in solar and wind, coupled with a large reduction in coal.

 

Other speakers emphasized a similar theme: The world does not face a binary choice, with oil and gas on one side and renewable energy on the other. Rather, all forms of energy are going to be needed to meet the world’s needs. And, as Woods pointed out, emerging technologies are helping to reduce carbon emissions from traditional energy sources.

 

The potential is everywhere. Abilene Christian University, UT Austin, Texas A&M and Georgia Tech are involved in the construction of a molten salt research reactor in Abilene. It is one of only two research reactor projects that the U.S. Nuclear Regulatory Commission has approved in more than 30 years. A molten salt reactor is different from a typical nuclear reactor because it uses liquid fuel, which provides advantages in efficiency and safety, as opposed to solid fuel. The research findings in Abilene can spur similar projects in the private sector.

 

The KBH Energy Center brings together faculty and programs from four UT Austin schools—business, law, engineering, and geosciences—to reflect the breadth of opportunities in the energy sector. The program is designed to help students explore a wide range of interests and career paths under the energy umbrella. For example, students from any school at UT can pursue a minor in energy to complement their primary studies and enhance their marketability to future employers. These students and others engaged with the KBH Energy Center will be ready to build careers in an array of fields throughout the industry and the need for reliable, abundant, affordable energy is essential for the American economy that these young people will soon join.

 

Technological changes will render some jobs obsolete. They always have. However, young Texans should not be discouraged. Change also brings opportunity, and many of those opportunities will be found in the Texas energy sector.

Kay Bailey Hutchison served in the U.S. Senate from 1993 to 2013 and as the U.S. Ambassador to the North Atlantic Treaty Organization from 2017 to 2021. John Butler is the Academic Director of the Kay Bailey Hutchison Energy Center, Director of MS Finance and Director of Energy Studies Minor at McCombs School of Business at University of Texas at Austin.

KBH Energy Center Symposium Draws Record Crowd, Features Industry Leaders

More than 600 students, industry professionals and others heard from leading voices in the energy sector on Sept. 12 during the 2025 Energy Symposium at the Kay Bailey Hutchison Energy Center.

This year’s symposium broke prior attendance records for the event and featured conversations with leaders from across the industry, including CEOs, investors, lawyers and journalists. The array of panel discussions reflected the comprehensive view of the energy industry that students receive through the KBH Energy Center, which is a collaboration among The University of Texas at Austin’s McCombs School of Business, School of Law, Cockrell School of Engineering, and Jackson School of Geosciences.

“Energy is the future,” said former U.S. Sen. Kay Bailey Hutchison as she began the symposium. “It’s the future of our economy and our national security.”

ExxonMobil Chairman and CEO Darren Woods headlined the symposium with a one-on-one discussion with KBH Energy Center Executive Director and former ExxonMobil Vice President and General Counsel Jack Balagia. Woods explained that most energy will continue to come from oil and natural gas well into the future. Still, the combination of new energy sources and decarbonizing the combustion of oil and gas will lead to significant reductions in carbon emissions, he predicted.

“I think people often underestimate the total size of the global energy system around the world and the dominant role that oil and natural gas play in that energy system,” Woods said. “While you see a lot of growth in new energy sources, they’re starting from a very small base in a very enormous system.”

He added, “You can decarbonize existing systems.”

At a dinner on the night before the symposium, Woods received the KBH Energy Center’s Award for Outstanding Excellence in the Energy Industry. He was presented the award by Hutchison and UT President Jim Davis.

Throughout the daylong symposium, speakers from various corners of the energy sector described abundant opportunities for students who will soon enter the workforce. The opportunities include creating the infrastructure needed to power the massive data centers needed to support artificial intelligence. The symposium also highlighted opportunities within nuclear energy. UT Austin and three other universities are currently involved in the construction of a molten salt research reactor in Abilene. It is the first research reactor project that the U.S. Nuclear Regulatory Commission has approved in Texas in more than 30 years.

“I’m of the view that we really have never seen anything this profound,” said Jim Breyer, the founder and CEO of Breyer Capital. “This is the most glorious time I can think of to be a student. I tell students and postdocs there’s never been a time quite like this.”

Others described how constant change in the energy industry creates new opportunities for students such as those who are involved with the KBH Energy Center.

“We are increasingly becoming a technology company in terms of how we deal with our customers,” said Jason Ryan, executive vice president of regulatory services and government affairs for CenterPoint Energy.

Multiple conversations also looked at the historic and ongoing connection between energy and national security and the competition among countries for advantages in energy innovation.

“One of the things I worry about is the potential for scientific and technical surprise,” said Heather Wilson, a former member of Congress and secretary of the Air Force who now serves as president of The University of Texas at El Paso. “We have been so dominant scientifically, technically since the end of the Second World War that we don’t think about this now. We have 18 intelligence agencies. Not a single one of them focuses on the potential for scientific or technical surprise.”

The symposium, now in its 11th year, is one of the signature events of the KBH Energy Center, which also provides students with numerous opportunities to visit the state’s major energy centers and hear directly from leaders in the industry. The 2026 Energy Symposium will be held on Friday, Sept. 11.

This recent PE 150 piece provides timely insight into a trend our partner, Tailwater Capital LLP, has frequently discussed with our investors: the growing misalignment between capital markets and energy fundamentals.

Our partners at Gibson Dunn break down the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, which has made sweeping changes to U.S. clean energy incentives.

Key shifts include: tighter timelines for wind & solar credits, stricter foreign supply chain rules, expanded support for nuclear, and new incentives for clean fuels, fuel cells, and carbon capture.

Gibson Dunn explain what this means for energy developers, investors, and policymakers.

Research from Dr. Joshua D. Rhodes, PhD shows the powerful economic impact of renewables and storage in Texas.

Wind, solar, and storage projects have already generated billions in tax revenue and landowner payments—and are projected to deliver nearly $50B over their lifetimes.

For rural communities, these projects provide critical revenue, stability, and strong local support—earning the reputation of “good neighbors.”

As Texas leads the nation in renewable deployment, supportive policy and investment will ensure these benefits continue statewide.

Congratulations to Dr. Rhodes for this valuable contribution to Texas’ energy future.

Read the full report: https://txrenewables.net/