Exxon Mobil To Invest $50 Billion In US Over 5 Years, Due To Trump’s Tax Reform

Exxon Mobil Corporation is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller’s Standard Oil Company and was formed on November 30, 1999 by the merger of Exxon (formerly Standard Oil Company of New Jersey) and Mobil (formerly the Standard Oil Company of New York).

The world’s 10th largest company by revenue

,ExxonMobil is also the seventh largest publicly traded company by market capitalization.The company was ranked ninth globally in the Forbes Global 2000 list in 2016.ExxonMobil was the second most profitable company in the Fortune 500 in 2014.

ExxonMobil is the largest of the world’s Big Oil companies, or supermajors with daily production of 3.921 million BOE (barrels of oil equivalent).

U.S. President Donald Trump signed into law a tax reform package last month that cut top corporate income rates to 21 percent from 35 percent and allowed for immediate expensing for capital costs of projects.

On Monday, oil giant Exxon Mobil touted Republicans’ tax reform legislation — but didn’t explicitly credit the reform — when it announced it would expand its United States investment by more than $50 billion over five years.Exxon Mobil Corp. is set to spend $50 billion over the next half decade in a return to the oil giant’s spending habits before crude suffered its worst price rout in a generation.

With oil prices now hovering above $65 a barrel in New York, Exxon Chief Executive Officer Darren Woods disclosed a program that includes the Permian Basin of West Texas and New Mexico, a hotbed of U.S. shale drilling where Exxon has been aggressively expanding for years.

In a blog post on Monday, Woods, a second-year CEO at the world’s biggest oil explorer by market value, cited President Donald Trump’s U.S. tax overhaul as a significant enabler of the plan. But it basically just returns the investment program to 2012-2016 levels, when crude prices peaked.

“These investments are underpinned by the unique strengths of our company and enhanced by the historic tax reform recently signed into law,” Darren Woods, the company’s CEO and chairman, said in a post.

Woods harped on President Donald Trump’s drastic corporate tax reduction from 35 to 21 percent, a move that Exxon said would translate into more jobs and economic expansion for the country.

Woods also touted “sound … regulatory policies that create a pro-growth business climate here in the U.S.” and cited how several other companies announced plans to invest in the country.

His post detailed how the company would invest its money:

For instance, we will be investing billions of dollars to increase oil production in the Permian Basin in West Texas and New Mexico, expand existing operations, improve infrastructure and build new manufacturing sites. This will create thousands of jobs, strengthen the U.S. economy and enhance energy security.

This comes on top of our massive build-out of operations along the Gulf Coast where we are investing billions of dollars and creating tens of thousands of high paying jobs on a number of major chemical, refining and lubricant projects.

His comments came just after the president credited his deregulatory and tax agenda for making the U.S. an economic “powerhouse”: