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Exxon Mobil wants to invest 50 billion U.S. dollars in the United States
Feb 24, 2018

ExxonMobil recently announced that it will invest 50 billion U.S. dollars for its homeland in the next five years, mainly to expand its business market, create more jobs and drive economic growth in various industries.


Exxon Mobil is the second giant after the technology giant Apple returned to the local American companies. Industry analysts believe this seems to imply that the good policy that the U.S. President Trump "oil cabinet" has put in to reverse the decline in the traditional oil and gas industry is playing a role.


The Financial Times reported that ExxonMobil has set a goal of 35 billion U.S. dollars, of which 15 billion U.S. dollars is aimed at boosting U.S. shale gas production and another 20 billion U.S. dollars to boost manufacturing in the Gulf Coast.


Permian basin yield increase


In a statement, ExxonMobil said it plans to more than double its shale oil production in the Permian Basin to more than 600,000 barrels / day by 2025, and the current oil and gas development and production costs in the area are already below 15 US dollars / barrel. The company has accumulated considerable experience drilling through more than 5,000 unconventional horizontal wells and has the geographical and cost advantages of assets in the Permian Basin. Since 2014, the company has doubled the footage of horizontal wells in a single day and reduced the drilling costs of horizontal wells by 70%. As of the end of 2017, ExxonMobil had a total of 20 rigs drilling in the Permian Basin for shale oil drilling, and plans to increase the number of rigs by 65% over the next few years. In addition, Exxon Mobil acquired a planned expansion of a crude oil terminal near the Delaware Basin, Texas, and invested $ 2 billion in infrastructure upgrades in support of the shale oil business in the Permian Basin to ensure that the Permian Basin Shale oil to reach the market faster.


Reuters pointed out that ExxonMobil's doubling the assets of the Permian Basin last year seemed to pave the way for the new $ 15 billion investment. In January last year, ExxonMobil paid $ 5.6 billion for shale oil assets of the Baths in the Permian Basin, doubling its reserves of crude oil in the region to 6 billion barrels of oil equivalent.


It is learned that the deal is the largest acquisition of oil and gas assets in the United States since November 2014. ExxonMobil aims to increase its strong position in the field of crude oil production. The company pointed out that the purchase of shale oil assets in an ideal location, is expected to be in a low oil price environment, get a handsome return. Analysts point out that this is a sign that large oil companies will pin their hopes on the future growth of unconventional resources in North America.


ExxonMobil CEO Darren Woods said another part of the $ 15 billion investment will add drilling costs in Eastern New Mexico to low-cost drilling activities, including expanding the business, improving infrastructure and building new production bases, which will Produce thousands of new jobs.


Revitalize the Gulf of Mexico manufacturing industry


Manufacturing along the Gulf Coast is also expected to shine with the help of ExxonMobil. In fact, the company announced a $ 20 billion revitalization plan as early as March last year, including developing and upgrading local petrochemical processing facilities, creating jobs, boosting U.S. economic strength and enhancing energy security.


Bloomberg News reports that ExxonMobil is assessing the likely impact of a tax cut on several projects currently under planning and will adjust the investment plan made in March last year.


It is understood that Exxon Mobil will create 35,000 construction jobs in the construction of about 11 sites along the Gulf Coast and will create 12,000 long-term jobs after operations.


Woods said that "the incompatibility between energy and environmental protection is not correct, which in fact ignores the progress of the energy industry. We now have the ability to process the more polluting crude oil into much less polluting products, The world is still indispensable. "