Exxon Mobil announced on Monday (5 February) that it was planning to spend $50 billion in its business in the United States within the next five years. The investment is facilitated by the US tax overhaul that was recently announced by President Trump’s administration.
The company did not specify whether the plan meant an increase in spending in response to the changes or how much of the $50 billion was tied to plans Exxon had had before the tax rewrite. Exxon CEO Darren Woods added that the company was still studying whether the tax overhaul made additional investment more economically viable. “We’re actively evaluating the impact of the lower tax rate on the economics of several other projects currently in the planning stages to further expand our facilities along the Gulf Coast,” Mr. Woods blogged.
West Texas and New Mexico will be the areas where Exxon will be investing billions to boost production. The company has been planning to increase its spending in the region for a long time. In 2017, Exxon spent almost $6 billion to expand its activities in the area and the company vowed to more than triple its output in the Permian basin and North Dakota through 2025. The Texas-based company is well-known for its strategic planning of its build-out of oil and gas projects around the globe, assessing multi-billion-dollar projects before making the final call.
Last year, Exxon said it was planning to spend between $23 billion and $27 billion a year around the world from 2018 to 2020. Based on the Monday’s announcement, it would mean about $10 billion a year in the US for five years. The company also made it clear that it saw the US tax revamp in extremely positive terms. “Good to see sound policy laying the groundwork for America’s future economic success,” Mr. Woods said.