Exxon to invest $20 billion over 10 years in the Gulf

Exxon Mobil Corporation (NYSE:XOM) issued a press release today saying that it is expanding its manufacturing capacity along the U.S. Gulf Coast through planned investments of $20 billion over the next decade. The PR quotes its chairman and CEO Darren Woods as saying this will "take advantage of the American energy revolution."

Since President Donald Trump took office, he's worked to make good on his promises to bring jobs back to America as well as abolish climate change-friendly policies. Today's announcement would strike members of the environmental community as worrisome considering both Exxon's poor environmental record and its offering up Rex Tillerson as Secretary of State. The controversial Cabinet pick was Chairman and CEO of ExxonMobil from 2006 to 2016, and his close Russian ties have been concerning, particularly in light of election hacking investigations.

The PR goes on to say that:

"The projects, at 11 proposed and existing sites, are expected to generate thousands of new high-paying jobs and $20 billion in increased economic activity in Texas and Louisiana,' Woods said, highlighting the company’s Growing the Gulf initiative in a keynote speech today at the CERAWeek 2017 conference.

“'The United States is a leading producer of oil and natural gas, which is incentivizing U.S. manufacturing to invest and grow,' said Woods. '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.'”

ExxonMobil is strategically investing in new refining and chemical-manufacturing projects in the U.S. Gulf Coast region to expand its manufacturing and export capacity. The company’s Growing the Gulf expansion program, consists of 11 major chemical, refining, lubricant and liquefied natural gas projects at proposed new and existing facilities along the Texas and Louisiana coasts. Investments began in 2013 and are expected to continue through at least 2022.

Woods said that ExxonMobil’s Gulf expansion projects are expected to provide long-term economic benefits to the region, noting the creation of direct employment opportunities and the multiplier effects of the company’s investments.

'Importantly, Growing the Gulf also creates jobs and lasting economic benefits for the communities where they’re located,' Woods said. 'All told, we expect these 11 projects to create over 45,000 jobs. Many of these 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.'

According to the American Chemistry Council, chemical manufacturing is one of America’s top exporting industries, accounting for 14 percent of overall U.S. exports in 2015, and exports of specific chemicals linked to shale gas are projected to reach $123 billion by 2030. Most of ExxonMobil’s planned new chemical capacity investment in the Gulf region is targeted toward export markets in Asia and elsewhere.

'These projects are export machines, generating products that high-growth nations need to support larger populations with higher standards of living,' Woods said. 'Those overseas markets are the motivation behind our investments. The supply is here; the demand is there. We want to keep connecting those dots.'"

Praising the announcement, Trump tweeted: "45,000 construction & manufacturing jobs in the U.S. Gulf Coast region. $20 billion investment. We are already winning again, America!" generating 5,877 replies, 6,368 retweets, and 26,504 likes as of 4:07 p.m. Central Time.

Despite the pro-jobs hoopla surrounding this announcement, it remains to be seen exactly how the region will be impacted especially should another horrific oil spill occur. Notably, the 2010 BP oil spill did put oil behemoths on notice, yet drill-baby-drill has remained the mindset.

The Exxon Valdez oil spill occurred in Prince William Sound, Alaska, March 24, 1989, when the Exxon Valdez oil tanker owned by Exxon Shipping Company struck Prince William Sound's Bligh Reef, spilling 10.8 million U.S. gallons (260,000 bbl; 41,000 m3) of crude oil over the next few days. It is the second largest oil spill on U.S. territory, after the April 20, 2010 Deepwater Horizon BP oil spill. Photos: Top - Mississippi River, from New Orleans by Laurie Wiegler; Bottom: U.S. Navy, May 11, 1989 Exxon Valdez cleanup operation.Wikimedia Commons Images