ExxonMobil releases response to Biden’s letter to oil industry

We have been in regular contact with the administration to update the President and his staff on how ExxonMobil has been investing more than any other company to develop US oil and gas supplies. This includes investments in the US of more than US$50 billion over the past five years, resulting in an almost 50% increase in our US production of oil during this period.

Globally, we’ve invested double what we’ve earned over the past five years – US$118 billion on new oil and gas supplies compared to net income of US$55 billion. This reflects the company’s long-term growth strategy, and our commitment to continuously invest to meet society’s demand for our products.

Specific to refining capacity in the US, we’ve been investing through the downturn to increase refining capacity to process US light crude by about 250 000 bpd – the equivalent of adding a new medium-sized refinery. We kept investing even during the pandemic, when we lost more than US$20 billion and had to borrow more than US$30 billion to maintain investment to increase capacity to be ready for post-pandemic demand.

In the short term, the US government could enact measures often used in emergencies following hurricanes or other supply disruptions – such as waivers of Jones Act provisions and some fuel specifications to increase supplies. Longer term, government can promote investment through clear and consistent policy that supports US resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines.

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Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/16062022/exxonmobil-releases-response-to-bidens-letter-to-oil-industry/