This Oil Project Keeps Getting Better for ExxonMobil
Global integrated energy giant ExxonMobil (NYSE: XOM) is investing heavily in new oil production. That's going against the grain today with low oil prices and Wall Street increasingly pushing oil companies to pull back on their spending plans. The thing is, Exxon thinks it has some really great opportunities ahead of it, and it doesn't want to slow down. Its drilling in offshore Guyana, for example, is an incredible opportunity that's only just starting to show results. Here's what you need to know about this deepwater project.
Exxon intends to spend up to $35 billion a year on its capital investment plans through 2025. The weak oil and natural gas price environment hasn't deterred it from this goal, with CEO Darren Woods explaining during Exxon's fourth-quarter 2019 earnings conference call that, "We believe strongly that investing in the trough of this cycle has some real advantages as the industry has pulled back, projects costs come down resulting in lower cost of capacity additions. They are then available to catch the cycle upswing. This is a win-win, capturing high margins at a lower cost."
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Source Fool.com
