ExxonMobil declared its next five-year corporate plan, with a significant increase in investments aimed at emission reductions and accretive lower-emission initiatives, including its Low Carbon Solutions business. The business plan is for maintaining yearly capital expenditures between $20 and $25 billion while increasing investments in lower-emission technologies to around $17 billion.
In the Upstream and Product Solutions businesses, this disciplined strategy emphasizes high-return, low-cost-of-supply assets and supports initiatives to lower the intensity of greenhouse gas emissions from operating assets as well as those emitted by other businesses.
By 2027, earnings and cash flow potential are predicted to have increased by twofold compared to 2019. The plan also supports the company’s strategic priorities, which include setting the standard for safety, shareholder returns, earnings and cash flow growth, cost and capital efficiency, and greenhouse gas emission intensity reductions.
“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 Darren Woods, chairman and chief executive officer. “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.”
To assist improve supply and fulfilling global demand, investments are anticipated to total between $23 billion and $25 billion in 2023. The business is still on target to reduce structural costs by the end of 2023 by about $9 billion compared to 2019.
Due to investments in high-return, low-cost-of-supply projects, upstream profits potential is anticipated to treble from 2019 to 2027. More than 70% of capital expenditures will go toward strategic projects in the Permian Basin of the United States, Guyana, Brazil, and LNG projects all over the world. More than 50% of the total upstream production is anticipated to come from these main growth areas by 2027, increasing it from 4.2 million oil-equivalent barrels per day to 4.2 million oil-equivalent barrels per day.
Through 2027, ExxonMobil has set aside around $17 billion for internal emission reductions and accretive third-party lower-emission efforts, a nearly 15% increase. With a focus on massive carbon capture and storage, biofuels, and hydrogen, nearly 40% of these investments go toward developing our lower-emissions business with clients to minimize their greenhouse gas emissions.
“We’re aggressively working to reduce greenhouse gas emissions from our operations, and our 2030 emission-reduction plans are on track to achieve a 40-50% reduction in upstream greenhouse gas intensity, compared to 2016 levels,” added Woods. “We will continue to advocate for clear and consistent government policies that accelerate progress to a lower-emissions future. At the same time, we’ll continue to work to provide solutions that can help customers in other industries reduce their greenhouse gas emissions, especially in higher-emitting sectors of the economy like manufacturing, transportation and power ge