ExxonMobil, the world's largest oil company, announced a five-year corporate plan on Thursday that will significantly increase investments in emission reductions and accretive lower-emission initiatives.
The business plan is expected to double upstream earnings and cash flow potential by 2027 compared to 2019 by benefiting from investments in high-return, low-cost-of-supply projects.
The plan strives to keep annual capital expenditures at $20–25 billion while increasing investments in lower-emission technologies to roughly $17 billion.
'Our five-year plan is expected to drive leading business outcomes and is a continuation of the path that has delivered industry-leading results in 2022,' Darren Woods, the company’s chairman and chief executive officer, was quoted as saying in the statement.
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.
In 2023, the company expects to maintain its upstream investments at nearly 3.7 million barrels of oil equivalent per day, assuming a $60 per barrel Brent price, which would also offset the impact of strategic portfolio divestments and Russia's expropriation of the Sakhalin-1 well.
By 2027, its upstream production is expected to grow by 500,000 barrels of oil-equivalent per day, to 4.2 million barrels of oil-equivalent per day.
- Company steps up low carbon goals
ExxonMobil plans to invest nearly $17 billion in its own emission reductions through 2027, a nearly 15% increase.
It pledges to allocate nearly 40% of its lower emission investments to reduce greenhouse gas emissions of its customers with a primary emphasis on large-scale carbon capture and storage, biofuels and hydrogen.
'We’re aggressively working to reduce greenhouse gas emissions from our operations, and our 2030 emission-reduction plans are on track to achieve a 40–50% reduction in upstream greenhouse gas intensity, compared to 2016 levels,' Woods said.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr