The World's No.1 Oil Company Overtaken by Renewable Energy... ExxonMobil in Crisis

At One Point During Trading, NextEra Energy Led the Decline
Renewable Energy Stocks Rise on Biden Election Hopes

[Asia Economy Reporter Naju-seok] ExxonMobil, which once ranked first in the world by market capitalization, is now at risk of losing its top position even in the energy sector. At one point during trading, the market capitalization of renewable energy company NextEra Energy surpassed that of ExxonMobil.

On the 5th (local time), CNN cited investment bank UBS in reporting this. Looking at the closing prices alone, ExxonMobil's market capitalization was $142.2 billion (165.05 trillion KRW), exceeding NextEra's $141 billion. However, there was a moment during trading when NextEra's market capitalization briefly surpassed ExxonMobil's.

[Image source=Reuters Yonhap News]

NextEra is the largest renewable energy company in the United States, producing electricity using solar and wind power. However, in terms of revenue, NextEra's $19.2 billion falls far short of ExxonMobil's $265 billion revenue last year.

Nevertheless, looking at stock price trends, NextEra has shown an upward trend, rising 19% this year. In contrast, ExxonMobil has been on a downward trend since recording a market capitalization of $446 billion in 2014.

In particular, NextEra has attracted market attention due to the potential for significant growth if Democratic presidential candidate Joe Biden is elected.

Because of this, the brief shift in market capitalization within the energy industry was interpreted as a signal that ExxonMobil, a symbol of fossil fuels, could be overtaken by future energy companies. UBS emphasized that this is "an example showing that the transition from traditional energy to renewable energy will continue for decades."

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