Exxon Mobil Corp is the largest oil producer that is publicly traded in the entire world. On Monday, the company declared that it is likely to invest a capital of 20 billion dollars till the year 2022 in order to expand the oil refining and chemical plants situated on the Gulf Coast of the United States.
Darren Woods, the Chief Executive revealed that this investment will be targeted at 11 sites that will help to create 35,000 temporary construction jobs as well as 12,000 permanent jobs. This information was given at the energy executive gathering, CERAWeek, which is the largest in the world.
Exxon said that these expansions had begun in the year 2013 and the growth since then has been increasing and has been facilitated by extended timeline.
Before becoming the CEO, Woods worked in the refining division of Exxon and has immense experience and knowledge in this particular sector.
Wall Street however is concerned about the decline in the potential growth of Exxon, but investments that are being made in this project will assist in bringing the growth back.
Woods has confirmed that Exxon Mobil is under the phase of construction of a manufacturing powerhouse in the Gulf Coast of the United States. The main objectives are to create plastic that is energy efficient and fuel that is cleaner to use.
The cheap shale gas will be used in the process of building plastic all over Louisiana and Texas. Other necessary chemicals will also be exported. Before this, Dow Chemical Co. had also begun the expansion of shale and experienced a significant drop in its costs of production.
Exxon had also declared in the previous month that it will spend 16 percent more in the year 2017 for this expansion since the results of the quarterly profit were really good. This profit can be contributed to both the lowering of costs and the rise in the prices of oil.
Rex Tillerson, the former CEO of the company was tapped by Trump for the position of Secretary of State. Trump called Exxon a true success story of America and praised its business plans. Trump further stated that this kind of investment will create job opportunities in America.
The CEO, Woods also said that they will try their best to just connect the dots as both the demand and supply has been rising.
Beaumont in Texas will see the expansion bulk and plan to carry out the expansion of the production of polyethylene, exports of natural gas in liquefied form and the capacity of oil refining. It will also increase the capacity of lubricant manufacturing and will construct a refinery for ethane production.