ExxonMobil to Invest at Record Levels to Meet Growing Energy Demand
NEW YORK--(BUSINESS WIRE)--
Exxon Mobil Corporation (NYSE:XOM) Chairman and CEO Rex Tillerson today announced plans to invest more than $125 billion in capital spending over the next five years to deliver major projects to help meet growing world energy demand.
"We will invest record amounts to develop new technology, bring on new upstream projects, increase our base refining capacity and grow our chemical business," Mr. Tillerson told analysts at the New York Stock Exchange.
"With our technology advantage and an industry-leading portfolio of 119 projects that are expected to support development of more than 24 billion oil-equivalent barrels of energy, ExxonMobil will continue to be an industry leader in bringing new supplies to the market."
From 2008 to 2010 alone, Mr. Tillerson said, the company expects to participate in the start up of 19 new projects which, at peak, would collectively add more than 725,000 oil-equivalent barrels per day to ExxonMobil's production.
He said ExxonMobil's commitment to developing advanced technology, its industry-leading operational and project management capabilities and exceptional employees would continue to place the company as the partner of choice for resource owners around the world.
Leader in Liquefied Natural Gas Projects
ExxonMobil expects to start up multiple projects over the next three years across the full value chain of the liquefied natural gas (LNG) business, including production, transportation and distribution. Using ExxonMobil proprietary technology, the company will commission four of the world's largest liquefaction facilities and new LNG ships which can carry 80 percent more natural gas than conventional ships. ExxonMobil's advances in LNG technology are contributing to the development of an international natural gas market.
"We will almost double our production of LNG over the next three years, providing greater supplies of this clean-burning energy source for power generation and for industrial and domestic use," said Mr. Tillerson.
Commitment to Technological Leadership
Mr. Tillerson said the company's commitment to proprietary research is key to its competitive advantage.
"Our technology leadership creates resource opportunities through cost-effective solutions in challenging environments, and it enables the development of innovative products and new and improved manufacturing processes," said Mr. Tillerson.
"We are deploying new technologies in our Downstream and Chemical businesses to make our operations more efficient, utilize advantaged feedstocks and develop higher-value products.
"Underpinned by our commitment to technology and leveraging our global functional organization, our balanced portfolio helps mitigate risks that arise from changes in commodity price, business cycle and market conditions," said Mr. Tillerson.
ExxonMobil continued its superior performance with a 2007 return on average capital employed of 32 percent, almost 40 percent greater than its closest competitor, and increased its five-year average to 28 percent.
"Our relentless drive for continuous improvement generates tremendous competitive advantage and value for our shareholders. The return on capital employed of each of our businesses is better than the best of any of our major competitors," said Mr. Tillerson.
This is the sixth year that ExxonMobil has made an annual presentation to analysts at the New York Stock Exchange.
CAUTIONARY STATEMENT: Projections, expectations and business plans in this release are forward-looking statements. Actual future results, including capital expenditures; production rates and resource recoveries; project plans, schedules, and outcomes; and the impact of new technologies could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; timely completion of development projects; technical or operating factors; and other factors discussed in Item 1A of ExxonMobil's most recent Form 10-K and posted in the Investors section of our website (www.exxonmobil.com). References to oil-equivalent barrels and other quantities of oil and gas in this release include volumes that are not yet classified as proved reserves but that we believe will be produced in the future. See the "Frequently Used Terms" posted in the Investors section of our website for more information on our definition of "resource base" and calculation of return on average capital employed.
Source: Exxon Mobil Corporation
Released March 5, 2008