ExxonMobil (NYSE:XOM) Corporation, the largest oil company in America, recently projected a $4 billion increase in its motor fuels and chemicals earnings by 2027 during a briefing at its Spring, Texas headquarters. The company's earnings are anticipated to reach $16 billion, marking a significant leap from current levels.
This bullish outlook is grounded in ExxonMobil's expectation of continued demand growth for refined products and chemicals. However, this view contrasts the International Energy Agency's recent predictions of a decline in oil usage for transportation fuels post-2026.
Senior Vice President Jack Williams conveyed that gasoline demand is likely to peak by the end of the decade before stabilizing for an extended period. In response to this projected rise in demand, ExxonMobil has bolstered its refining capacity through substantial investments. Notably, the company expanded its Beaumont, Texas refinery by 250,000 barrels per day in January.
In addition to refining, ExxonMobil has been channeling investments into chemical production. A recent investment in its Baytown, Texas refinery, which co-locates with a chemical unit, underscores this strategy. Despite the importance of refining to ExxonMobil's operations, a significant part of its future efforts will focus on the chemicals sector.
Karen McKee, president of the Product Solutions unit, views the integration of ExxonMobil's refining, petrochemicals, and low-carbon business unit as a potential game changer for the company.
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