ExxonMobi said its five-year corporate plan which ends in 2027, maintains annual capital expenditures at $20-$25 billion, while growing lower-emissions investments to approximately $17 billion.
The plan, with a sizeable increase in investments, is aimed at emission reductions and accretive lower-emission initiatives, including its Low Carbon Solutions business.
It will grow lower-emissions investments to approximately $17 billion.
This disciplined approach prioritizes high-return, low-cost-of-supply assets in the Upstream and Product Solutions businesses and supports efforts to reduce greenhouse gas emissions intensity from operated assets, as well as those emitted from other companies.
The plan is expected to double earnings and cash flow potential by 2027 versus 2019 and supports the company’s strategic priorities, which include leading the industry in safety, shareholder returns, earnings and cash flow growth; cost and capital efficiency; and reductions in greenhouse gas emissions intensity.
“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,” said, the chairman and chief executive officer, Darren Woods.
He added that, “we view our success as an ‘and’ equation, one in which we can produce the energy and products society needs – and – be a leader in reducing greenhouse gas emissions from our own operations and also those from other companies. The corporate plan we’re laying out today reflects that view, and the results we’ve seen to date demonstrate that we’re on the right course.”
Investments in 2023 are expected to be in the range of $23 billion to $25 billion to help increase supply to meet global demand.
The company also remains on track to deliver a total of approximately $9 billion in structural cost reductions by year-end 2023 versus 2019.
Upstream earnings potential is expected to double by 2027 versus 2019, resulting from investments in high-return, low-cost-of-supply projects. More than 70 per cent of capital investments will be deployed in strategic developments in the U.S. Permian Basin, Guyana, Brazil, and LNG projects around the world.
By 2027, Upstream production is expected to grow by 500,000 oil-equivalent barrels per day to 4.2 million oil-equivalent barrels per day with more than 50 per cent of the total to come from these key growth areas.
Approximately 90 per cent of Upstream investments that bring on new oil and flowing gas production are expected to have returned greater than 10 per cent at prices less than or equal to $35 per barrel, while also reducing Upstream operated greenhouse gas emissions intensity by 40-50 per cent through 2030, compared to 2016 levels.
Near-term Upstream investments are projected to keep production at approximately 3.7 million barrels of oil equivalent per day in 2023 assuming a $60 per barrel Brent price, offsetting the impact of strategic portfolio divestments and the expropriation of Sakhalin-1 in Russia.
These growth plans are focused on high-return projects that are anticipated to double volumes of performance chemicals, lower-emission fuels, and high-value lubricants.
The company continues to leverage its industry-leading manufacturing scale, integration, and technology position to upgrade its portfolio and reduce costs.
