US-based oil major is poised to gradually reverse the austerity it imposed on itself in 2020, when energy prices crashed in the wake of the COVID-19 pandemic.
The company spent some $23 billion in annual capital and exploration expenditure last year, and was previously expecting to spend $20–25 billion in the years through to 2027. This is now expected to rise to $23–25 billion next year, and $22–27 in the subsequent years.
The company also expects to spend $3 billion more on low-carbon projects in the coming years, with this now reaching $20 billion between 2022 and 2027.
The chief executive of ExxonMobil, Darren Woods, said about this:
“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, which makes the Mobil coolant and grease range, is also close to buying the Permian Basin’s largest oil producer, Pioneer Natural Resources, for some $60 billion. Together with increased investment in prominent assets like its Guyana operations and its existing plays in the Permian, the company hopes to increase its oil production to 4.2 million barrels a day by 2027, an increase of 10% on its current value.
The move from ExxonMobil could herald a wider shift to increased spending in the industry, which has tended to focus more on optimising returns for shareholders by maintaining capital discipline since the energy price crash of 2020.
