Exxon Mobil Corporation (NYSE:XOM) Chairman and CEO Rex Tillerson
today announced plans to invest more than $125 billion in capital
spending over the next five years to deliver major projects to help
meet growing world energy demand.
"We will invest record amounts to develop new technology, bring on
new upstream projects, increase our base refining capacity and grow
our chemical business," Mr. Tillerson told analysts at the New York
Stock Exchange.
"With our technology advantage and an industry-leading portfolio
of 119 projects that are expected to support development of more than
24 billion oil-equivalent barrels of energy, ExxonMobil will continue
to be an industry leader in bringing new supplies to the market."
From 2008 to 2010 alone, Mr. Tillerson said, the company expects
to participate in the start up of 19 new projects which, at peak,
would collectively add more than 725,000 oil-equivalent barrels per
day to ExxonMobil´s production.
He said ExxonMobil´s commitment to developing advanced technology,
its industry-leading operational and project management capabilities
and exceptional employees would continue to place the company as the
partner of choice for resource owners around the world.
Leader in Liquefied Natural Gas Projects
ExxonMobil expects to start up multiple projects over the next
three years across the full value chain of the liquefied natural gas
(LNG) business, including production, transportation and distribution.
Using ExxonMobil proprietary technology, the company will commission
four of the world´s largest liquefaction facilities and new LNG ships
which can carry 80 percent more natural gas than conventional ships.
ExxonMobil´s advances in LNG technology are contributing to the
development of an international natural gas market.
"We will almost double our production of LNG over the next three
years, providing greater supplies of this clean-burning energy source
for power generation and for industrial and domestic use," said Mr.
Tillerson.
Commitment to Technological Leadership
Mr. Tillerson said the company´s commitment to proprietary
research is key to its competitive advantage.
"Our technology leadership creates resource opportunities through
cost-effective solutions in challenging environments, and it enables
the development of innovative products and new and improved
manufacturing processes," said Mr. Tillerson.
"We are deploying new technologies in our Downstream and Chemical
businesses to make our operations more efficient, utilize advantaged
feedstocks and develop higher-value products.
"Underpinned by our commitment to technology and leveraging our
global functional organization, our balanced portfolio helps mitigate
risks that arise from changes in commodity price, business cycle and
market conditions," said Mr. Tillerson.
Industry-Leading Returns
ExxonMobil continued its superior performance with a 2007 return
on average capital employed of 32 percent, almost 40 percent greater
than its closest competitor, and increased its five-year average to 28
percent.
"Our relentless drive for continuous improvement generates
tremendous competitive advantage and value for our shareholders. The
return on capital employed of each of our businesses is better than
the best of any of our major competitors," said Mr. Tillerson.
This is the sixth 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 and resource
recoveries; project plans, schedules, and outcomes; and the impact of
new technologies 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). References to oil-equivalent
barrels and other quantities of oil and gas in this release include
volumes that are not yet classified as proved reserves but that we
believe will be produced in the future. See the "Frequently Used
Terms" posted in the Investors section of our website for more
information on our definition of "resource base" and calculation of
return on average capital employed.
