EXXONMOBIL has revealed plans to more than double its earnings potential by 2025.
The company’s chairman and CEO Darren Woods told shareholders during the company’s annual meeting that the world’s growing energy needs will require trillions of dollars in new investment across industry, even under a scenario to limit the global increase in temperature to two degrees Celsius.
Mr Woods said the company will continue to focus on investments that take advantage of its technology leadership, integrated businesses and highly skilled employees.
“Through record discoveries, world-class acquisitions and growing access to attractive markets, we’ve put together the best portfolio of new investments since the Exxon-Mobil merger nearly 20 years ago,” Mr Woods said.
“Our investments are robust to a wide range of price environments, and they leverage our competitive advantages in technology, integration and, most importantly, our people.”
Lower-cost-of-supply investments in U.S. tight oil, deepwater and LNG are key drivers behind ExxonMobil’s plans, and are supported by a suite of industry-leading technologies including advanced seismology, integrated reservoir modeling and data analytics.
The company has announced it would increase tight oil production in the US Permian Basin five-fold, and start up 25 projects worldwide, which will add volumes of more than 1 million oil-equivalent barrels per day. In 2017, ExxonMobil added 10 billion oil-equivalent barrels to its resource base in locations including the Permian, Guyana, Mozambique, Papua New Guinea and Brazil.
ExxonMobil is upgrading its product slate through strategic investments at refineries in Baytown and Beaumont in Texas and Baton Rouge, Louisiana, Rotterdam, Antwerp, Singapore, and Fawley in the U.K. The company expects to grow its chemical manufacturing capacity in North America and Asia Pacific by about 40%, in part by adding 13 new facilities including two world-class steam crackers in the United States.
Mr Woods said the company is focused on four fundamentals: integration, technology, operational excellence and project execution.
“Our investment plans, like every aspect of our business, are built on the fundamentals,” Mr Woods said. “We focus on success factors that are true regardless of market conditions, and we leverage areas where we have unique competitive strengths.”
Mr Woods also stressed the company’s commitment to a solutions-oriented approach to address the dual challenge of producing energy the world needs for economic growth while addressing the risks of climate change.
“Society’s needs evolve and so do we,” Woods said. “We have a long history of consistently rising to and meeting the challenges of a dynamic world.”
Woods provided details of ExxonMobil’s response to a resolution passed during the 2017 shareholders meeting seeking more information on how the company will address the risks of climate change.”