ExxonMobil has raised its mid-term investment plan for 2027 and expects global demand for fossil fuels to remain strong

US oil giant ExxonMobil announced that it will adjust its medium-term investment plan until 2027. According to the new plan, the company's annual capital expenditure will be raised to $22 billion to $27 billion, an increase from the previous plan of $20 billion to $25 billion per year. This adjustment is said to be based on strong expectations of global demand for fossil fuels in the future.

ExxonMobil stated that after the climate action, with a skeptical attitude towards future oil demand, the company expects to recover 90% of its oil and gas development investment in less than 10 years. Through the promotion of structural reform, the company expects to save $6 billion in costs by 2027. Meanwhile, the company's cash flow is expected to increase to $14 billion during the same period, double the amount in 2019. By 2027, the investment in low-carbon projects will reach $20 billion, an 18% increase from previous plans. The company's investment goals include developing new businesses such as lithium production in Arkansas, USA.

ExxonMobil has agreed to acquire shale oil production giant Vanguard Natural Resources. If the transaction is completed in the first half of 2024, the company will increase the stock repurchase scale to $20 billion per year by 2025. In 2023, the company's stock repurchase volume was 17.5 billion US dollars.

The company expects oil and gas production to reach 4.2 million barrels per day by 2027, a 10% increase from the 2024 plan. The company's production increase plans in Texas and Guyana are being pushed forward. The above plan does not include the acquisition of approximately 700000 barrels per day of production from Pioneer Natural Resources.