According to informed sources, oil giants Exxon Mobil (XOM.US), Phillips 66 (PSX.US), and Occidental Petroleum (OXY.US) do not want Donald Trump and his allies to cut the favorable provisions for the oil industry in President Biden's inflation reduction act (IRA). These companies appreciate some benefits in the IRA, especially the incentives for low-carbon energy projects, which often require massive investments.

Exxon Mobil, Phillips 66, and Occidental Petroleum and other oil giants all appreciate some benefits in the IRA, especially the incentives provided for low-carbon energy projects. These projects often require massive investments, and the tax deductions in the IRA help these companies invest in technologies like carbon capture and hydrogen.

Vicki Hollub, CEO of Occidental Petroleum, told Trump at a fundraising event in May that the tax deductions in the IRA helped the company invest in carbon capture technology.

Meanwhile, Exxon Mobil has committed to investing $15 billion in new investments to reduce carbon emissions and has informed the Trump team that it hopes to retain some assets in the IRA.

Phillips 66 executives also told Trump's allies in Congress that the tax deductions in this law are very important for their business.

It is understood that oil lobbying groups may welcome the cancellation of certain aspects of the IRA, especially tax deductions for wind power and electric cars.

However, Trump did not specify which funds he would cut from the bill and which funds he would save. Despite his constant criticism of electric vehicle charging infrastructure and electric vehicle tax credits, he pledged to revoke any unspent appropriations before possibly returning to the White House, and to "immediately suspend" new expenses and appropriations.

At the same time, the costs of carbon capture and sustainable aviation fuel production are very high, and the production scale of these technologies is simply not sufficient to reduce costs. The scale of transition investments is large and the risks are high, so even oil giants prefer to share risks with governments pushing for the transition. However, once completed, these investments cannot simply be withdrawn in case a new president opposed to the transition takes office in the White House.

In conclusion, despite Trump's promise to revoke any unspent appropriations before possibly returning to the White House, and to "immediately suspend" new expenses and appropriations, oil giants still support at least some aspects of the IRA and have ample reasons to do so. The challenge they face is how to ensure that their investments in low-carbon technologies and sustainability are protected and supported in the event of possible changes in government policies.