Exxon Mobil Corporation (NYSE:XOM) on Monday announced that it will invest $20 billion over 10 years on its manufacturing plants along the U.S. Gulf Coast.
The energy giant plans to invest in new refining and chemical manufacturing projects in the U.S. Gulf Coast region to expand its manufacturing and export capacity.
Most of the company’s planned new chemical capacity investment in the Gulf region is targeted toward export markets in Asia and elsewhere.
The projects are expected to generate thousands of new high-paying jobs, CEO Darren Woods said in a keynote speech at the CERAWeek 2017 conference on Monday.
“The United States is a leading producer of oil and natural gas, which is incentivizing U.S. manufacturing to invest and grow,” Woods said. “We are using new, abundant domestic energy supplies to provide products to the world at a competitive advantage resulting from lower costs and abundant raw materials. In this way, an upstream technology breakthrough has led to a downstream manufacturing renaissance.”
Exxon Mobil Growing the Gulf Expansion Program
Exxon Mobil’s Growing the Gulf expansion program includes 11 major chemical, refining, lubricant and liquefied natural gas projects. They will be built at proposed new and existing facilities along the Texas and Louisiana coasts.
Woods believes that the company’s Gulf expansion projects will provide economic benefits to the region. He expects 11 projects to create over 45,000 jobs.
“Importantly, Growing the Gulf also creates jobs and lasting economic benefits for the communities where they’re located,” Woods said.
“Many of these [jobs] are high-skilled, high-paying jobs averaging about $100,000 a year. And these jobs will have a multiplier effect, creating many more jobs in the communities that service these new investments,” Woods added.
Exxon Mobil Stock Update
On Monday, shares of ExxonMobil closed up 0.45%. The stock is down over 8% for the year.
During the past 12 months, XOM shares have gained 0.66%. The stock has fallen 6.48% during the last six month.