By: Zack Duvall
During the world’s largest annual gathering of energy and oil executives, CERAWeek, the Chief executive of Exxon Mobil revealed plans by his company to invest $20 billion through 2022 in order to expand the company’s oil and chemical refining operations along the U.S. Gulf Coast.
News of the planned investment by Exxon Mobil, the world’s largest publicly traded oil producer, came Monday during speech given by Darren Woods, Exxon’s chief company executive, to event attendees, promising the creation of at least 35,000 temporary construction jobs, as well as 12,000 permanent jobs with many of the permanent jobs paying $100,000 a year.
“Exxon Mobil is building a manufacturing powerhouse along the Gulf Coast. These businesses are leveraging the shale revolution to manufacture cleaner fuels and more energy-efficient plastics.” Woods said during his speech at the event.
Although projects related to the new investment by the company began in 2013, the new investment is an expansion of those projects and a complete overhaul of the company’s refining and production presence on the southern coast.
The new investment will be distributed between 11 production sites and planned facilities, and projects in Texas and Louisiana will take advantage of cheap shale gas to make plastics and other chemicals the company plans to export. This strategy by Exxon build on recent moves by peer companies, such as Dow Chemical Company, to take advantage of the American shale boom, which has drastically reduced costs of production for gas and oil companies.
The new plan by the company comes after a better than expected profit by the company last quarter, which the company reported last month. A profit that many industry analysts say was directly related to the decreased costs of production and rising costs of oil.
The President called the move by the company “a true American success story” and cited the high paying jobs that this investment by Exxon would bring to the southern coast.
“This is exactly the kind of economic development and job creation that will help put Americans back to work.” The President said in a statement about the announcement by the oil giant.
The bulk of the expansion by the company is planned to take place in Beaumont, Texas where Exxon plans to expand its polyethylene production, its oil refining capacity, and liquefied natural gas exports.
Exxon Mobil will also increase its lubricant manufacturing capacity and could possibly build an entirely new refinery to produce a key building block of chemical production, ethane.