Touted as the world’s largest publicly traded oil firm, Exxon Mobil has recently declared that it plans to invest around USD 35 billion in the United States in the ensuing five years. Reportedly, the latest announcement adds up the total investments of the company to a humongous USD 50 billion in the nation, USD 15 billion of which had already been announced in the past.
Meanwhile, the latest investment bid comes in the backdrop of the recently passed law that slashed corporate tax rate from 35 percent to 21 percent. As a consequence, the announcement by Exxon holds immense significance for the overall oil and gas market growth in the United States. Furthermore, it would be prudent to mention that the latest investment move puts Exxon in the league of a number of other firms that have announced investment plans and employee bonuses following President Donald Trump and GOP lawmakers’ decisions to overhaul the taxation regime.
With the additional investments, the Texas headquartered company plans to enhance its existing oil manufacturing capacity in the Permian Basin, a shale oil region in eastern New Mexico and western Texas. Owing to the lesser production cost, the region has attracted a host of major drillers from US oil and gas industry, cite experts.
Speaking on the development, the Chairman of Exxon Mobil, Darren Woods was quoted stating that the investments demonstrate the strengths of the firm and support the US government’s recent tax reforms. He further stated that the additional investments by the firm would materialize on the back of the resource base developed by the leading stakeholders of oil and gas market complemented with a robust regulatory framework that has created pro-growth business space in the nation.
Moreover, Exxon further aims to build new manufacturing sites, expand its operations, revamp its infrastructure with the additional investments, activities that would eventually generate thousands of new jobs in the US oil and gas industry.