The global oil producer Exxon Mobil Corp. (NYSE: XOM) is all set to increase its footprint in the U.S. The world’s biggest publicly listed oil company announced plans on Monday to pour in some $20 billion in its chemical and oil refining properties located in the Gulf Coast. The funds will be invested over a period until 2022.
Fresh employment opportunities at sites
The result of the expansion plans will be that these sites will have a number of new employment opportunities coming up over the next few years. According to Daren Woods, Chief Executive, a total of 11 sites will see new activity here under the expansion strategy and some 35000 temporary jobs will be created here during the period. In addition, some 12000 permanent jobs will also open up in the same sites. The expansion is not a sudden decision, the Chief Executive pointed out and explained that some of them had actually been inaugurated back in 2013. At present, the expansion is being taken up at a faster pace and with increase scope, he stated.
Expansion will appease investors
It is believed that the expansion plans will shore up Exxon’s growth in the coming years and this could be great news for the oil company’s investors and for its market performance. Investors have been concerned about the company’s lack of momentum in growth terms and this could just be the strategy to change that perception. The main reason behind the expectation of high growth from this expansion idea is that these are all high margin projects. Plus they put Exxon firmly back on the map as it were, where its core strength area, oil and gas exploration, is concerned.
Focus on energy efficiency and clean energy
In a bid to stay in sync with the need of the hour, Exxon seems to be bringing more power to its Gulf Coast properties. It appears to be moving towards production of clean fuel and energy efficient plastics through these locations. In particular, the company’s exposure in the Louisiana and Texas areas will allow it to leverage the cheaper shale gas in its plastic manufacturing and chemical export businesses. This not a new strategy for Exxon and they know exactly what to do to control their costs in a dramatic fashion by opting for this move. Meanwhile they have recorded significantly heartening profits for the quarter and this has helped boost the market sentiment about the company too.