Exxon to Spend 25% Less in 2016, But Raises $12B to Go Shopping

ExxonMobil, the largest U.S.-based energy company and largest producer of natural gas in the U.S., released an interesting press release yesterday. In it, they divulge their high-level plans for 2016. Among those plans, the company will spend $23 billion this year, which is 25% less than what they spent last year. Exxon will start up 10 new upstream projects in 2016 and 2017, which will add an additional 450,000 oil-equivalent barrels per day to their already huge production. Exxon CEO Rex Tillerson is quoted as saying, “We are advancing several Downstream and Chemical projects to increase feedstock flexibility, produce higher-value products and expand logistics capabilities to strengthen our competitive advantage in these businesses.” Our thought: Let’s hope one of those downstream projects getting advanced this year is the Monaca, PA ethane cracker. It’s also interesting what Exxon didn’t say in yesterday’s press release: They didn’t comment on the recent $12 billion in bonds they’ve floated so they can go shopping and pick off distressed competitors and/or their assets…

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