The Strategist

ExxonMobil to invest up to $ 50 billion in the US economy

01/30/2018 - 14:32

US oil and gas giant ExxonMobil plans to invest billions of dollars in the US economy due to the recently approved reduction in corporate tax rates in the US, the company's executive director said.

Minale Tattersfield via flickr
Minale Tattersfield via flickr
The head of the world's largest publicly traded oil producer Darren Woods wrote in his blog on the company website that Exxon expects to spend $ 50 billion on projects in the US over the next 5 years. He is also "actively evaluating" projects at the planning stages as a result of new tax and regulatory changes.

As the press secretary of the company Scott Silvestri specified, more than $ 35 billion will be allocated for previously unannounced projects.

Before that, Exxon had already announced its readiness to invest tens of billions in refining, petrochemicals and exploration of shale oil on the coast of the Gulf of Mexico by 2022.

Recall that at the end of last year, US President Donald Trump signed a law on a package of tax reforms, which reduced the maximum corporate income rates to 21% from 35%. This allowed the immediate repayment of capital expenditures for projects for US companies.

The corporation has already begun to expand its activities in the United States. Last year ExxonMobil bought several sites in the Delaware and Midland basins, which are part of the main area of American shale mining.

"Located in the oil-rich areas of the Delaware and Midland basins, new areas will complement the existing resource base of the Perm basin with a volume of 6 billion barrels of oil equivalent," the representative of the corporation said.

Simultaneously, ExxonMobil reduced the presence on the bituminous sands of Canadian Alberta. In the first half of 2017, the corporation wrote off part of its resources from its balance sheet. Proved reserves of bitumen oil at the Kearl field in Canada were reduced by 3.5 billion barrels.

In addition, you can hardly doubt that Exxon will take an active part in the development of the American shelf. Recall that within the framework of the White House's strategic plan to achieve world energy dominance, President Donald Trump's administration intends to allow drilling and oil and gas production of almost 90% of the US continental shelf.

This, in particular, is about the areas near the Atlantic coast of the country, as well as off the coast of California and Alaska. The plan stipulates that in the period from 2019 to 2024 a program of research and development of hydrocarbon deposits will be launched in virtually all areas previously closed for this purpose.