ExxonMobil expects to double earnings and cash flow potential by 2027, and will increase investments in lower-emissions efforts, the company said on Thursday in news release detailing plans for the next five years, said the company.
The corporate plan through 2027 maintains annual capital expenditures at USD20bn-USD25bn, while growing lower-emissions investments to approximately USD17bn. ExxonMobil said the approach prioritises high-return, low-cost-of-supply assets in the Upstream and Product Solutions businesses and supports efforts to reduce greenhouse gas emissions intensity from operated assets.
Investments in 2023 are expected to be in the range of USD23bn to USD25bn to help increase supply to meet global demand. The company also remains on track to deliver a total of approximately $9bn in structural cost reductions by year end 2023 versus 2019.
Upstream earnings potential is expected to double by 2027 versus 2019, resulting from investments in high-return, low-cost-of-supply projects. More than 70% of capital investments will be deployed in strategic developments in the US Permian Basin, Guyana, Brazil and LNG projects around the world.
By 2027, Upstream production is expected to grow by 500,000 barrels of oil-equivalent (boe)/day to 4.2m boe/day with more than 50% of the total to come from these key growth areas.
Approximately 90% of Upstream investments that bring on new oil and flowing gas production are expected to have returns greater than 10% at prices less than or equal to USD35/bbl, while also reducing Upstream operated greenhouse gas emissions intensity by 40-50% through 2030, compared to 2016 levels, ExxonMobil said.
Near-term Upstream investments are projected to keep production at approximately 3.7m boe/day in 2023 assuming a USD60/bbl Brent price, offsetting the impact of strategic portfolio divestments and the expropriation of Sakhalin-1 in Russia.
We remind, ExxonMobil today announced the successful startup of its new polypropylene production unit at the Polyolefins Plant in Baton Rouge, Louisiana. The unit increases polypropylene production capacity along the Gulf Coast by 450,000 metric tons per year, meeting growing demand for high-performance, lightweight and durable plastics, particularly for automotive parts that can improve fuel efficiency and reduce vehicle emissions. Polypropylene, a polymer with several applications, is also used to improve the safety and efficiency of everyday products like medical masks and food packaging.
mrchub.com