DALLAS (AP) — Exxon Mobil has told shareholders that it doesn't think policies to combat climate change will have much effect on its business and that demand for fossil fuels will remain strong for decades.

In a report released Friday, the company does acknowledge that some of its most costly oil and gas reserves might not be developed.

Exxon's report comes in response to pressure from shareholders who voted last May to urge the company to issue a report on the matter every year.

The shareholders fear that policies to limit heat-trapping carbon emissions will hurt Exxon's business of drilling...