Fundamental Reasons for Exxonmobil's Expulsion from the Dow Jones Industrial Average on Aug 31, 2020: Lessons and Implications for the Global Oil Market and Kazakhstan

Abstract

The article provides a reasonable explanation for Exxonmobil's unprecedented expulsion from the Dow Jones Industrial Average on August 31, 2020 based on the Kondratieff Wave Concept and Capital Overaccumulation Theory. Authors of this paper suggest that the crisis in the oil market in 2020, triggered by the coronavirus, was expected and could be explained by the economic origins of development, namely, the change of the 5th technological mode to the 6th one. Taking into account the fact that oil is the main energy source of the 5th technological mode, it is obvious that its change will affect the oil market. At the same time, the process of the oil market losing its positions is not spontaneous, since the intensive development of new technologies and a sharp increase in renewable energy investments have led to a decrease in oil consumption.