“We're not immune to inflation, obviously, and we would see a fair amount of both energy and feedstock inflation coming through the business in certain areas that put a little bit of pressure on margins.”

In context

“can you add a little bit of color around what you're seeing on just broad cost inflation, labor and otherwise? And how, if at all, that impacts some of those goals and targets over time? Kathy Mikells : Sure. So I'll start out with just saying, we feel good about the progress that we're continuing to make. At the end of the fourth quarter, we had said we've gotten to about $5 billion in structural cost savings relative to 2019. We're now at $5.4 billion. So I'd say, overall, we feel really good about that progress. Obviously, we have now put in place the new organizational structure, which should drive incremental efficiencies on top of just driving better operations, faster speed to market, better deployment, faster deployment of resources to the highest opportunities across the company. We're not immune to inflation, obviously, and we would see a fair amount of both energy and feedstock inflation coming through the business in certain areas that put a little bit of pressure on margins. Overall, in terms of how we're managing that, it flows through 2 parts of the operation. So one is on CapEx. We feel really good about where we're at there because during the pandemic, we really took the opportunity to extend contracts on work that was coming forward. So I'd say while the shorter cycle work programs obviously have some inflationary pressure, the teams are working really hard to offset that. Overall, I'd say we really try and lever master service agreement, self-manage kind of procurement. We utilize a diverse set of global contractors across the globe in trying to really manage inflation. So through the quarter right now, I'd say we're doing a pretty good job of offsetting it, but it's obviously something that we're watching really closely. Darren Woods: Yes, I would just”