Exxon Mobil has promised an investment of $20 billion in a span of 10 years. The investment will help build and develop refineries and chemical and liquefied natural gas plants, along the Gulf Coast. The Chairman and CEO of Exxon Mobil, Darren Woods said that this expansion plan is designed to create the petroleum products for export. He said that this project will focus on 11 plants in Louisiana and Texas. He also mentioned that this would create around 12,000 permanent and around 35,000 construction jobs. At present, Exxon has approximately 71,000 employees.
Growth Plans of Exxon Mobil
This 10 year long investment, estimated at $20 billion would be equal to the total capital spending by Exxon during last year. The Texas company also recently announced that it plans on increasing the total overall investments. It plans to increase the investments to $25 billion a year on an average, between 2018 and 2020. The natural gas prices dropped majorly last year, reaching at the lowest of the decade. In a press release, Woods said that they are using new and abundant domestic energy supplies to provide products to the world. According to the data of UN Comtrade, the U.S. exported petroleum and natural gas products of about $91 billion, in 2015.
Exxon Mobil also mentioned that it is planning expansion around current locations like Texas, Beaumont and Baytown, and Baton Rouge, LA. The multinational corporation wants to build a new chemical factory at a location along the Gulf.
This is Darren Woods' first public announcement as the CEO of Exxon. Woods is succeeded by Rex Tillerson who is now President Trump’s Secretary of State. It is assumed that Woods will focus more on controlling the costs and may take a different approach in deal-making.
Woods as the New CEO of Exxon Mobil Corporation
Woods, 52, had joined Exxon Mobil Corporation in 1992. Most of his work at Exxon had been in the area of chemicals and refining. This stream is the so-called downstream area of business. Analyst Sam Margolin states that the psychology in the downstream part of business is different than what is in oil and gas. He also states that downstream is more about managing the costs and getting the most through less efforts.
Woods has lots to work on at this phase of business. In 2008 and 2012, Exxon Mobil recorded almost $45 billion of earnings. But since the slump of oil prices, Exxon’s profit tumbled to a low of $7.8 billion during last year. This is recorded as the company’s smallest profit amount since 1998.
Not only that, Exxon was forced to write down some assets due to low oil prices. It also lost its prestigious AAA credit rating along the way. Woods position as the CEO of Exxon Mobil Corporation is recent, so it is tough to judge his working pattern so early. But he has a detailed growth plan, so it is left to see that how will the oil and gas manufacturing company progress under his hands.