ExxonMobil on Wednesday released its new corporate plans under which it expected to double earnings and cash flow by 2027 from 2019 while also lowering emissions. The plans come as the company reconsiders its long-term strategy after the COVID-19 pandemic and a shake-up in its board. The American oil giant said it plans to spend $20 billion to $25 billion annually through 2027. This is well above the $16 billion to $19 billion range Exxon outlined for 2021 spending but significantly lower than the $30 billion to $35 billion range projected before the pandemic.
Exxon said the new spending plan would allow flexibility to adapt to market conditions, policy changes, and low-carbon transition. The company said it would continue focusing on high-quality assets. It said that low-cost projects and aggressive cost-cutting measures would allow over 90% of its new upstream investments to generate returns of more than 10% even if oil prices fell to $35 per barrel or lower.
Exxon also reiterated its pledge of reducing greenhouse gas (GHG) emissions intensity from its upstream operations by 40-50% through 2030, versus 2016 levels. The company has committed $15 billion to achieve the target. These investments will include a balance between projects to cut GHG emissions from existing operations and higher spending in the Low Carbon Solutions business. Exxon said that it is on course to exceed its 2025 GHG emissions-cutting plans launched in December 2020.
