Energy giants are starting to take the same approach as many American manufacturing businesses today. Turning to America to set up shop, Exxon Mobil Corp. (XOM) joins the charge to bring operations back within U.S. borders. Planning to spend about $20 billion on refineries, petrochemical plants and other projects around the Gulf of Mexico, Chief Executive Darren Woods is excited about this latest move.
In an announcement on Monday (3/6/2017), Woods outlined the 11-project spending plan focused on creating new outlets for U.S. natural gas. The speech took place at the annual CERAWeek conference and came after a meeting with analysts last week. Exxon is now poised to nearly double its production from U.S. shale basins over the next ten years.
The $20 billion pledge to increase American spending around the Gulf Coast actually began in 2013 but will continue to at least 2022, according to Exxon.
ExxonMobil will be creating new, high-skilled and high-paying jobs in the United States. Averaging about $100,000 a year, these jobs will also come with the classic multiplier effect which can be found in manufacturing and other economically vital industries like the energy industry. The jobs created will lead to other jobs being created to assist in the downstream operations of ExxonMobil’s increased presence in the United States.
The White House released a statement about ExxonMobil’s announcement and it shared striking similarities to the press release put out by the company. When asked about the similarities, the White House responded saying “the expansion program has many different components to it, and we went straight to the source for some of our information.” (http://abcn.ws/2mwiP0z). The current administration has taken a strong stance on American business and this was a chance to show off another behemoth corporate entity investing in the United States.
Thank you to @exxonmobil for your $20 billion investment that is creating more than 45,000 manufacturing & construction jobs in the USA!
— Donald J. Trump (@realDonaldTrump) March 7, 2017
“Investments of this scale require a pro-growth approach and a stable regulatory environment and we appreciate the President’s commitment to both,” said Darren Woods. He continued, “The energy industry has proven it can operate safely and responsibly. Private sector investment is enhanced by this Administration’s support for smart regulations that support growth while protecting the environment.” (http://bit.ly/2mYufYY)
It’s exciting to see more interest in investing into American business operations from multiple industries. Furthermore, the energy industry is a heavy user of industrial components. With manufacturers moving back to the United States, this could turn into a huge economic boost for both industries while also keeping the supply chain local.
MFG Talk Radio will be keeping a close eye on the developments surrounding American manufacturing and business. Make sure to check back soon for the latest news focused on the American energy and manufacturing industry.