ExxonMobil’s Capex on Track Despite Recession

DUBAI - In spite of the recession and softening demand growth for oil, ExxonMobil Corporation plans to boost its capital investment in energy projects by 12 per cent this year to $29 billion, the company’s treasurer said on Thursday.

By Staff Report

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Published: Thu 12 Mar 2009, 7:33 PM

Last updated: Thu 2 Apr 2015, 7:45 AM

ExxonMobil is budgeting to make investments worth $25-$30 billion in each of the next four years to help it meet the projected increase in worldwide oil demand.

“We haven’t changed our capital budget plans, unlike many of our competitors. We continue to invest,” said Donald Humphreys, ExxonMobil’s Senior Vice President and Treasurer.

The US oil major invested $26 billion in exploration, production and other long-term operations last year. It continues “to progress” its current portfolio of 120 active projects, he said.

Humphreys made his remarks in a keynote speech at the Wharton Global Economic Forum in downtown Dubai. Hundreds of graduates and faculty of the Wharton School of the University of Pennsylvania attended the forum, a two-day event held for the first time in the Middle East. The theme of the forum was the region’s rising role in the changing global economy. The forum ends on Thursday.

ExxonMobil has invested in energy projects in Egypt, Qatar, Saudi Arabia and the United Arab Emirates, Humphreys said. He did not say what new investments it might be considering in the region.

Looking ahead, the company foresees China and India accounting for more than 40 per cent of the incremental growth in worldwide energy demand. The Middle East also would account for a “substantial” share of the burgeoning global appetite, Humphreys said.

Oil, natural gas and coal cannot by themselves satisfy the total future demand for energy. “Alternatives such as solar and wind energy and nuclear and biofuels will make a significant and growing contribution,” he said.

Yet, ExxonMobil has invested little, compared to BP and some of its other rivals, in these alternative fuels. “First generation” technologies such as these are not financially attractive, Humphreys said.

”Without large government subsidies, we don’t see how they can be viable.”

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