Exxon investing $50B in US projects in coming five years

Zuma Press photo by Joel Angel Juarez.

Exxon says it will increase its investment in West Texas and New Mexico shale operations. Zuma Press photo by Joel Angel Juarez.

Exxon CEO credits changes in taxes, regulations for rising investments

Reuters reports Exxon Mobil plans to invest $50 billion in US projects in the next five years.  The head of the global oil giant credits recently approved corporate tax cuts for the move.

Darren Woods, CEO of Exxon Mobil said in a blog on the Exxon website “These investments are underpinned by the unique strengths of our company and enhanced by the historic tax reform recently signed into law.”

Company spokesman Scott Silvestri told Reuters that more than $35 billion of the money allotted is for projects that had previously not been announced.

Last spring, Exxon said it will invest $20 billion in its US Gulf Coast chemical and oil refining operations through 2022.  It had also recently pledged tens of billions for US refining, petrochemical and shale exploration.

Woods wrote that in addition to these pledges, “we will be investing billions of dollars to increase oil production in the Permian Basin in West Texas and New Mexico, expand existing operations, improve infrastructure and build new manufacturing sites”.

“These are quality investments for our shareholders.”

Late in December, US President Donald Trump signed into law his tax reform package that cut corporate income tax rates to 21 per cent from 35 per cent.  His plan also allowed for immediate expensing for capital costs of projects.

Woods became CEO of Exxon in January 2017 after former CEO Rex Tillerson was named US Secretary of State in the Trump administration.

The company will release its 2017 fourth quarter results on Friday. On Tuesday, Exxon shares were down 80 cents to $87.22.






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