The giant oil company in the United States stated last Monday that they plan to invest an astounding $50 billion dollars to expand its business operations across the country. The company is confident that their investment will harbor success and profit while creating more job opportunities for its community in the next five years.
Exxon plans to Invest $50 Billion to Expand its US Business Operations
This latest and gigantic movement of Exxon was prompted after the change in the American Tax overhaul. CEO Darren Woods made the announcement on his blog post, stating that the company will further study how the tax overhaul would help the company to drive more investments in the future. The company has yet to disclose the breakdowns or detailed plan on how to spend the $50 billion investment, as well as how the tax changes would affect the investment. However, Mr. Woods gave a hint of two possible strategic locations where they would be pouring billions of investment to boost their production. Two of the locations they’re considering are New Mexico and West Texas to attract drillers.
Exxon to Take Advantage of Lower Corporate Tax Rate for their Business operations
The CEO stated that the company has been aiming to step up its investment in these regions for the next 5 years. It can also be remembered that prior to this $50 billion investment plan, Exxon already spent around $6 billion last year in order to expand its operation in North Dakota and Permian Basin. The company envisioned that this initial investment (as well as the upcoming ones), will help boost the company's production in the region throughout 2025.The company is also targeting to improve its infrastructure and manufacturing sites that would also help generate thousands of jobs to help their host cities and communities thrive.
Exxon Also Revealed its Other Investment Plans On Monday
Aside from the $50 billion investment in infrastructure and business operations, Mr. Woods also revealed that they’re venturing into opening other startup business. One of this is their plan to invest around $20 billion to construct chemical and liquefied natural gas facilities along the US Gulf Coast. This will also create around 20,000 jobs along the coast and the company is excited to help the community to increase their manpower as they seek to expand their business.
Woods Shares their Business Expansion Plan for the Next 5 Years
Even if the full impact and results of this said the daring and ambitious project can only be grasp around 5-10 years from now, Mr. Woods is positive that this will drive positive impact not only to the community but for the US business industry in general. He’s positive that the recent tax reform will help not only giant businesses like Exxon but more importantly, those startup businesses to drive more capital investment and expenditures into expanding their business because of the lower corporate tax rates. He also said that this is the perfect time for the company to pursue all of its strategic projects and goals when it comes to business expansion.
Exxon Wishes to Continue Its Legacy as the Country’s Oil and Energy Giant Through the Years
Exxon took pride in being meticulous when it comes to planning their production of build-out of oil and gas not only in the US but also all over the world. This meticulous planning and careful implementation of their projects enabled them to build multibillion-dollar projects and businesses that click to the masses. This recent statement from CEO Mr. Woods, who just ascended the position last January 2017, when he replaced Chief Rex Tillerson, draws positive feedback from the mass despite the slight 1% decline on stock trading last Monday. It’s because all of their projects and businesses so far were patronized by their loyal customers.
Exxon to Expand Their Operations in New Mexico and West Texas
That’s why, whenever Exxon would plan to announce their new ventures, everyone is excited because it generally means more job opportunities for the US Citizens and its host community. It’ll also help boost the US economy. For the investor's side, this business expansion would also mean more investments and profits for their stocks and shares as shareholders of the said company.
