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ExxonMobil announced plans to boost spending on oil production, doubling down even as other producers pull back amid fears of an oversupplied global market.
The biggest western oil company on Wednesday said it had pencilled in $27bn-$29bn for capital expenditure next year, rising to $28bn-$33bn between 2026 and 2030. It is set to spend about $28bn this year.
The supermajor expects to produce 5.4mn barrels of oil equivalent a day by 2030, up from 3.7mn boe/d last year.
Chief executive Darren Woods said the group had “a unique set of highly valuable competitive advantages” that set it apart from other producers.
“That’s a formula for profitable growth and shareholder value through and beyond 2030 — no matter the pace and scale of the energy transition — that truly puts us in a league of our own,” said Woods.
Exxon’s bullish spending programme comes as other producers dial back expansion plans. Chevron, its biggest US rival, said last week it would cut capital spending for the first time since the pandemic.
Exxon’s announcement came on the same day that Opec once again slashed its oil demand outlook for 2024 and 2025. The cartel said earlier this month it would continue to hold back supplies as it looked to prop up prices amid sluggish consumption.
This is a developing story