US oil major ExxonMobil has said that its plan to cut operating costs and increase its earnings by $14 billion by 2027 is on track.
The company stated that a series of cost-cutting measures over the next four years should result in its earnings more than doubling compared to 2019 levels, as it increases its oil-production capacity and grows sales of low-emission fuels, petrochemicals and its high-performance Mobil lubricant and grease range.
The cuts will apply to structural costs rather than capital expenditure, which it expects to be $23–25 billion next year and $22–27 billion in the subsequent years to 2027. It expects average returns of 30% from its investments, with nine-tenths of this expenditure paid back within a decade.
In a statement, Darren Woods, Exxon’s CEO, said:
“We remain committed to providing the energy and products that raise living standards around the world while building a new business to reduce emissions in hard-to-decarbonise parts of the economy. ExxonMobil is uniquely equipped to do both, and we’re confident that both present significant opportunities for profitable growth.”
The company announced that $20 billion of its expenditure through 2027 will be earmarked for low-carbon projects and halving the greenhouse gas emissions from its upstream operations, something that it says it is already halfway to achieving. It expects to generate 15% average returns in spaces like biofuel, carbon capture, hydrogen and lithium. By 2030, it aims to be producing enough lithium to support the production of a million electric vehicles.