NEW YORK--(BUSINESS WIRE)--Exxon Mobil Corporation (NYSE:XOM) today announced plans to invest at record levels -- between $25 billion and $30 billion annually over the next five years -- to meet expected long-term growth in world energy demand.
“The global economy is currently experiencing a downturn, but at ExxonMobil we are focused on the long term,” Rex Tillerson, chairman and chief executive officer, said at an annual briefing for investment analysts at the New York Stock Exchange.
“ExxonMobil’s strong financial position, resulting from the strength of our business portfolio and our prudent approach to risk management and investment, enables us to develop new oil and gas projects, increase our production of higher value refined products and grow our chemical business.”
Tillerson outlined ExxonMobil’s major achievements in 2008 and plans for the future. Highlights include:
-- Production started at eight major projects in 2008, which at their peak are expected to add the net equivalent of 260,000 barrels per day to the company's production. A further nine major projects are expected to commence production in 2009, and at their peak are expected to add the net equivalent of an additional 485,000 barrels per day to production.
-- The company once again replaced more than 100 percent of production through proved reserves additions in 2008. It was the 15th consecutive year that the company's proved reserves additions have more than replaced production. In addition, net exploration acreage has been increased by about 40 percent since 2003.
-- In the downstream, the company is progressing plans to invest more than $1 billion in lower-sulfur diesel projects at three refineries in the US and Europe. Once complete in 2010, these projects will allow an increase in lower-sulfur diesel production of 140,000 barrels per day.
-- In the chemical business, the company has ramped up construction activity on world-scale petrochemical projects in China and Singapore, and continues to invest for specialty business growth, including a new plant in South Korea to manufacture lithium ion battery separator film to meet expected demand growth including batteries for hybrid and electric vehicles.
-- ExxonMobil continued its superior performance with a 2008 return on average capital employed of 34 percent, significantly higher than its closest competitor.
"ExxonMobil is strong, resilient, and well positioned for the future," said Tillerson.
“Our commitment to developing advanced technology, our industry-leading operational and project-management capabilities and exceptional employees continue to position the company as the partner of choice for resource owners around the world.”
This is the seventh year that ExxonMobil has made an annual presentation to analysts at the New York Stock Exchange.
CAUTIONARY STATEMENT: Projections, expectations and business plans in this release are forward-looking statements. Actual future results, including capital expenditures; production rates; project plans, schedules, and outcomes; and demand growth could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; timely completion of development projects; technical or operating factors; and other factors discussed in Item 1A of ExxonMobil's most recent Form 10-K and posted in the Investors section of our website (www.exxonmobil.com). The term “reserves,” as used in this release, includes proven reserves from oil sands operations in Canada which are currently reported separately as mining operations in our SEC reports. Reserves referenced in this release also represent the combined total from both consolidated subsidiaries and our interest in equity companies. See the "Frequently Used Terms" posted in the Investors section of our website for more information on proved reserves and our calculation of return on average capital employed.