ExxonMobil Chairman and CEO Rex Tillerson
ExxonMobil, one of the world’s largest energy companies by operational size and market capitalization, is reaching into its wallet in a big way. Exxon sees significant global energy demand growth – even with the considerable efficiency gains that many expect – and is solidifying its position as a major global supplier of the both the raw commodities and finished products that will fuel global consumption.
The company’s Chairman and CEO Rex Tillerson announced that ExxonMobil will invest roughly $185 billion will over the next five years in major upstream, downstream and petrochemical projects across the globe.
Fossil Fuel Consumption Expected to Soar
ExxonMobil expects global energy demand to increase by 30% by 2040, compared to 2010 levels.
To meet that demand the company will spend about $37 billion per year through 2016. Power generation demand is expected to make natural gas the fasted growing fuel source, while oil and gas are estimated to meet about 60% of the world’s energy requirements over the next thirty years.
Both Upstream And Downstream
Nine major upstream projects in which the company is either operator or a consortium partner are scheduled to start up in the next two years. Exxon highlighted some of the largest projects including four in West Africa, the long-awaited Kashagan Phase I in Kazakhstan and the Kearl Oil Sands project in Canada.
Downstream growth has been led by Asia in recent years and the trend is set to continue with capacity increases and new facilities coming online in Thailand, Singapore and Saudi Arabia.
A major petrochemical plant expansion is nearing completion in Singapore that will add 2.6 million tons per year of incremental capacity.