ExxonMobil Corp. (NYSE: XOM) plans to invest billions of dollars in the U.S. due in part to recently approved corporate tax rate cuts, the company's CEO said Jan. 29.
Darren Woods, head of the world's largest publicly traded oil producer, said in a blog post on the company's website that ExxonMobil expects to spend $50 billion in U.S. projects over the next five years. The company also is "actively evaluating" projects now in planning stages as a result of new tax and regulatory changes, he wrote.
More than $35 billion of that amount is for projects not previously announced, according to company spokesman Scott Silvestri.
ExxonMobil previously pledged tens of billions of dollars for U.S. refining, petrochemical and shale exploration efforts. Last spring, it laid out a $20 billion investment in its U.S. Gulf Coast chemical and oil refining operations through 2022.
The company also is increasing investment in its West Texas and New Mexico shale operations in the Permian Basin and moving ahead on a $10 billion petrochemical complex with Saudi Basic Industries Corp. in Texas.
U.S. President Donald Trump signed into law a tax reform package last month that cut top corporate income rates to 21% from 35% and allowed for immediate expensing for capital costs of projects.
"The recent changes to the U.S. corporate tax rate coupled with smarter regulation create an environment for future capital investments," Woods said, adding ExxonMobil is reviewing "the impact of the lower tax rate on the economics of several other projects currently in the planning stages."
Woods took over the top job in January 2017 after former CEO Rex Tillerson resigned to become U.S. Secretary of State.
ExxonMobil is slated to report its quarterly results on Feb. 2. Shares of the company fell 1% to close Jan. 29 at $88.09 as oil prices also fell.
The Biden administration earlier this year stopped holding federal oil and gas lease sales, pending the review, but a federal judge last month ruled that his leasing freeze was unlawful.
The U.S. Bureau of Land Management (BLM), which oversees the federal government's oil and gas leasing program, did not give a reason for the delays.
BLM had previously delayed oil and gas lease sales in Utah, Mississippi, Nevada and Colorado expected this month, as well as a major sale in New Mexico in late May.