US oil major ExxonMobil on Wednesday announced plans to significantly increase its earnings and cash flow generation by 2025 as it not only focuses on fossil fuel projects but also on its efforts to work on lower emission technologies, including biofuels.
According to a press release, ExxonMobil expects to increase annual earnings potential “by more than 140 percent” and double potential annual cash flow from operations by 2025.
“Higher earnings and increased cash flow from our investments are a good means to accomplish this. We are equally committed to helping society reduce global emissions while supporting growth and prosperity for communities around the world – effectively addressing the dual challenge,” Chairman and CEO Darren Woods told shareholders during the company’s annual meeting on Wednesday.
Woods said that projects on stream are expected to produce 5 million barrels per day by 2025, propelling it to achieve the projected earnings.
“Those projects include plans to increase production in the Permian Basin to 1 million oil-equivalent barrels per day by 2024. In Guyana, ExxonMobil recently announced the 13th discovery on the Stabroek block, adding to the previously estimated 5.5 billion barrels of discovered recoverable resource. Guyana’s first oil production is on track for early next year – just five years after discovery,” the press release noted.
In Brazil, ExxonMobil is finalizing development plans for the Carcara resource, which will begin production by 2024. The company further stated that it has secured offtake commitments in Mozambique for the Rovuma LNG project as it progresses towards a final investment decision. “And in Papua New Guinea, the company is planning a three-train liquefied natural gas expansion as it continues to explore for gas in the country’s Highlands region,” the release said.
The company, Woods said, is continuing its work on potential technology breakthroughs – including next-generation biofuels for transportation, carbon capture for power generation and new industrial processes to reduce energy use. “The world needs additional solutions. That’s where we think we can add significant value – leveraging ExxonMobil’s experience in the global energy system and our strong foundation in research and development.”
The ExxonMobil release said that the company recently committed to spending “up to $100 million over 10 years” on research with the U.S. Department of Energy’s National Renewable Energy Laboratory and National Energy Technology Laboratory “to bring lower-emissions technologies to commercial scale.”
“The agreement adds to our work with more than 80 universities around the world and with five energy centers – at MIT, Princeton, Stanford, the University of Texas and two national universities in Singapore.”
Additionally, ExxonMobil is partnering with private sector companies with capabilities critical to potential breakthroughs in low emission technologies.