Thanks to the development of shale resources and hydraulic fracturing technology, ExxonMobil Chairman and CEO Darren Woods believes a “whole new energy future” has become possible not only for the United States but also potentially for many other countries.
According to Woods, the U.S. energy industry has managed to accomplish what was considered unthinkable only a decade ago.
“At the turn of the century, analysts were predicting peak oil and that we would soon be under supply,” Woods said to delegates of the recent CERAWeek by IHS Markit in Houston. “Today we see the opposite: abundant supplies at lower emission levels. It’s a remarkable development.”
The United States is a top producer of oil and natural gas, using new, highly available, domestic energy supplies to provide advantaged products to the world.
“In this way, an upstream technology breakthrough has led to a downstream manufacturing renaissance. It has created new manufacturing jobs, investment and exports,” Woods said.
Woods further noted the energy industry advances despite fluctuating markets because it has continued to explore energy frontiers, develop new resources, acquire new technologies, manufacture new products, open new markets and forge new partnerships.
“At the same time, we have captured efficiencies, reduced emissions and lessened our environmental footprint,” he said. “That impact has been more energy for more people around the world, creating jobs and alleviating poverty.”
Woods added the industry has seen progress not only in oil and natural gas but also in the development of other energy sources, including wind and solar.
“The growth in alternative energy is important; the world needs options for all economic energy sources to meet the needs of a growing population and expanding prosperity,” he said.
Growing the Gulf
Woods said ExxonMobil is writing “a new chapter in its technological, manufacturing and environmental success story” by introducing a new project called “Growing the Gulf.”
“In 2013, we started expanding our manufacturing operations along the Texas and Louisiana coasts to capitalize on the domestic shale revolution,” he said. “We’re looking to continue that program until at least 2022 with even more growth.”
Growing the Gulf will represent $20 billion in investments over 10 years in 11 different projects. It is about more than increased manufacturing capacity, Woods added.
“It’s also about increased exports,” he said. “These projects are export machines, generating products that fast-growing nations need to support large populations and higher standards of living.”
These overseas markets underpin ExxonMobil’s investments.
“Supply is here, demand is there,” Woods explained. “We want to keep connecting those dots.”
Perhaps most important, Growing the Gulf creates jobs. Woods expects these 11 projects to create over 45,000 jobs.
“Many of these are high-skilled, high-paying jobs averaging about $100,000 a year,” he said. “They will also have a multiplier effect, creating many more jobs in the community.”
Woods characterized ExxonMobil’s Growing the Gulf project as a manufacturing powerhouse along the U.S. Gulf Coast.
“As we look forward, our opportunity is to grow. It is also our responsibility,” he said. “The world’s energy industry is the engine of the world’s economy. We help make the world work.”
Woods agreed with IHS Markit Vice Chairman and CERAWeek Chairman Daniel Yergin’s assessment that ExxonMobil’s Growing the Gulf project and the ensuing “manufacturing powerhouse wouldn’t have happened without the shale revolution.”
“The only way to keep winning in a competitive market is to keep innovating,” Woods said.
For more information on Growing the Gulf, visit www.exxonmobil.com
