ExxonMobil announces plans to invest $50 billion over five years in US operations, according to Chairman and CEO Darren Woods, as the previous $20 billion expansion in petrochemical and refining efforts in the Gulf coast continues. The additional investment is attributed to stronger oil prices compared to a year ago as well as recent regulatory changes and tax reform.
The initial $20 billion, 10-year investment for manufacturing expansion in US Gulf regions began in 2013 and is expected to continue through 2022. A press release on March 2017 noted the initial investment for “11 major chemical, refining, lubricant and liquefied natural gas projects at proposed new and existing facilities along the Texas and Louisiana coasts.” A $9.3 billion ethylene cracker plant in Corpus Christi, Texas, a joint venture with a Saudi company, is part of the $20 billion investment. Due to air-quality and other permits, construction is expected by the end of 2018 or early 2019 with an expected completion goal for 2021.
As part of the recently announced $50 billion investment, Jeff Woodbury, VP for Investor Relations, stated that ExxonMobil is planning to triple its daily production in the US Permian Basin, located in western Texas and southeastern New Mexico, to 600,000 barrels per day by 2025. He also noted production increases in the Bakken, Delaware and Midland basins.
The company plans to spend $24 billion on capital and exploration expenditures in 2018 as part of both investment commitments. Woodbury also added that the company expects to invest $2 billion in infrastructure to improve delivery to ExxonMobil’s manufacturing facilities along the US Gulf coast.
ExxonMobil reported earnings of $19.7 billion in 2017, up almost $12 billion compared to 2016 results.