ExxonMobil to invest 20 billion dollars to expand manufacturing in Mexico Gulf Coast
HOUSTON, Mar 06, 2017 (Xinhua via COMTEX) --
Copyright 2017 XINHUA NEWS AGENCY
ExxonMobil Corporation, world's
largest oil and gas company, announced on Monday that it will
invest 20 billion U.S. dollars in a 10-year period to expand its
manufacturing capacity in the U.S. part of the Mexico Gulf Coast,
a major oil and gas producing area in the United States.
Announcing the company's Growing the Gulf initiative at the
CERAWeek, an annual international gathering of energy industry
leaders, experts, government officials and policy makers, Darren
Woods, chairman and chief executive officer (CEO) of ExxonMobil,
said that the energy giant will do so as it wants to take
advantage of the American energy revolution.
He said that as a leading producer of oil and natural gas, the
United States is now incentivizing U.S. manufacturing to invest
"We are using new, abundant domestic energy supplies to provide
products to the world at a competitive advantage resulting from
lower costs and abundant raw materials. In this way, an upstream
technology breakthrough has led to a downstream manufacturing
renaissance," he said.
Woods detailed that the projects, at 11 proposed and existing
sites, are expected to generate thousands of new high-paying jobs
and 20 billion dollars in increased economic activity in the U.S.
states of Texas and Louisiana.
"We expect these 11 projects to create over 45,000 jobs. Many
of these are high-skilled, high-paying jobs averaging about
100,000 dollars a year. And these jobs will have a multiplier
effect, creating many more jobs in the communities that service
these new investments," he said.
According to Woods, ExxonMobil is strategically investing in
new refining and chemical-manufacturing projects in the U.S. Gulf
Coast region to expand its manufacturing and export capacity. The
company' s Growing the Gulf expansion program, consists of 11
major chemical, refining, lubricant and liquefied natural gas
projects at proposed new and existing facilities along the coasts
of Texas and Louisiana. Investments began in 2013 and are expected
to continue through at least 2022.
Most of ExxonMobil's planned new chemical capacity investment
in the Gulf region is targeted toward export markets in Asia and
Woods said that these projects are export machines, generating
products that high-growth nations need to support larger
populations with higher standards of living.
"Those overseas markets are the motivation behind our
investments. The supply is here; the demand is there. We want to
keep connecting those dots," he said.
The Gulf of Mexico area, both onshore and offshore, is one of
the most important regions for energy resources and
infrastructure. Gulf of Mexico federal offshore oil production
accounts for 17 percent of total U.S. crude oil production and
federal offshore natural gas production in the Gulf accounts for 5
percent of total U.S. dry production. Over 45 percent of total
U.S. petroleum refining capacity is located along the Gulf coast,
as well as 51 percent of total U.S. natural gas processing plant
The five-day CERAWeek by IHS Markit opened here on Monday with
a theme of "pace of change: building a new energy future".