Exxon Mobil to invest additional $35 bn in US over next five years
30 January 2018
The world's largest publicly traded oil company, Exxon Mobil, yesterday said it plans to invest an additional $35 billion in the US over the next five years.
According to chairman and CEO of Exxon, Darren Woods' blog post the investment is in part due to recently passed corporate tax cuts. With the announcement, Exxon joins a number of other companies that have announced employee bonuses and investments following president Donald Trump and GOP lawmakers' tax overhaul.
"These investments are underpinned by the unique strengths of our company and enhanced by the historic tax reform recently signed into law," Woods said in the blog post.
"These positive developments will mean more jobs and economic expansion across the United States in a myriad of industries."
Woods added, Exxon planned to invest $50 billion over five years, but a spokesperson later clarified that the company had already announced $15 billion of that spending.
Under the plans Exxon will increase production in the Permian basin, a shale oil region in western Texas and eastern New Mexico where drillers have been attracted by the low cost of production. Exxon added it will expand its operations, make improvements to infrastructure and construct manufacturing sites, activities that will generate thousands of new jobs.
''The recent changes to the US corporate tax rate coupled with smarter regulation create an environment for future capital investments,'' Woods said. He added that Exxon is reviewing ''the impact of the lower tax rate on the economics of several other projects currently in the planning stages.''
Woods took the reins at the top at Exxon in January 2017 after former chief Rex Tillerson resigned to become US secretary of state.
Exxon's quarterly results will be announced on Friday.
Shares of Exxon retreated 1 per cent to close yesterday at $88.09 as oil prices ClC1 also fell.