Exxonmobil's Infrastructure Overhaul: A $10 Billion Makeover

ExxonMobil has made several large investments in infrastructure in recent years. In 2021, the company announced plans to invest $15 billion over the next six years in initiatives to lower greenhouse gas emissions, with a particular focus on hard-to-decarbonize sectors such as heavy industry and commercial transportation. This investment is expected to accelerate ExxonMobil's efforts to reduce emissions from its operated facilities, with the company aiming to meet its 2025 emission-intensity reduction goals by the end of 2021, four years ahead of schedule.

In addition to its focus on emissions reduction, ExxonMobil has also invested in various manufacturing and expansion projects. In 2019, the company announced a multi-billion-dollar investment in the Gulf region, including the construction and expansion of over a dozen chemical, refining, lubricant, and liquefied natural gas projects. This investment is expected to create tens of thousands of jobs and generate significant economic activity.

ExxonMobil has also made significant investments in research and development, particularly in the area of energy and emerging technologies. The company employs thousands of scientists and engineers and spends around $1 billion annually on corporate research and development efforts.

Overall, ExxonMobil's investments in infrastructure and technology demonstrate its commitment to innovation, emissions reduction, and economic growth.

ExxonMobil's $10 billion investment in infrastructure on the Gulf Coast

The Golden Pass Products project is just one part of ExxonMobil's larger investment in the Gulf Coast, which also includes:

• The construction of a new crude-processing unit in Beaumont, Texas, increasing capacity by more than 65% or 250,000 barrels per day.
• Increased production of ultra-low-sulfur fuels by approximately 45,000 barrels per day using proprietary technology to remove sulfur.
• Construction of a new production unit at the polyethylene plant, increasing capacity by 65% to meet the demand for high-performance plastics.
• Entering the linear alpha olefins market, which are used in applications such as high-performing engine and industrial oils, waxes, and building blocks for surfactants and packaging.
• Increasing production of advanced synthetic Group II and Group II+ EHC base stock products, which offer greater formulation flexibility and enhanced product integrity for lubricant blenders.

These investments by ExxonMobil will not only create economic growth and jobs in the region but also contribute to the reduction of U.S. greenhouse gas emissions by taking advantage of the abundance of natural gas, which helps to lower energy costs.

The creation of tens of thousands of jobs

ExxonMobil's investment plans are expected to create tens of thousands of jobs. The company is investing more than $20 billion over ten years to build and expand 11 manufacturing facilities, creating economic activity worth billions of dollars.

The expansion covers more than a dozen major chemical, refining, lubricant, and liquefied natural gas projects along the Texas and Louisiana coasts.

The full-time manufacturing jobs created will be mostly high-skilled and high-paying, with average annual salaries ranging from $75,000 to $125,000.

ExxonMobil's investment in the Golden Pass liquefied natural gas project, for example, is expected to generate tens of thousands of jobs across the life of the facility, including approximately 9,000 construction jobs over five years, with peak employment reaching about 3,000 jobs.

The company's investment in a new polypropylene production unit in Baton Rouge, Louisiana, is expected to create up to 600 jobs during construction and 65 permanent jobs once completed.

Additionally, ExxonMobil's proposed multi-billion-dollar investment in a plastics manufacturing facility in San Patricio County, Texas, is expected to create more than 600 new permanent jobs and 3,500 indirect permanent jobs, as well as up to 6,000 construction jobs during the five-year construction phase.

The company's investments will not only create direct jobs but also support indirect jobs and drive economic growth in the regions where the projects are located.

ExxonMobil's investment in Beaumont

ExxonMobil has invested heavily in its Beaumont operations over the years, with a focus on expanding and improving its refining and petrochemical infrastructure. In 2019, the company announced a major investment in a new crude-processing unit, aiming to increase capacity by more than 65%, or 250,000 barrels per day. This $2 billion expansion project, which began construction in 2019, added a crucial 250,000 barrels per day of capacity to the Beaumont refinery, making it one of the largest in the United States.

The Beaumont refinery has a long history, dating back to its construction along the banks of the Neches River in 1903. Over the years, it has evolved into an integrated petrochemical complex, playing a vital role in meeting the energy needs of the nation and the world. The expansion project, completed in 2022, further solidified its position as a key player in the energy industry.

The decision to expand the Beaumont refinery was supported by ExxonMobil's growing crude production in the Permian Basin. This strategic move allowed the company to capitalise on its own crude oil supply and increase its capacity for transportation fuels. The expansion also included the addition of a new crude unit, enabling the production of transportation fuels like diesel, gasoline, and jet fuel.

ExxonMobil's commitment to the Beaumont expansion remained steadfast even through the challenges of the pandemic. Karen McKee, president of ExxonMobil Product Solutions, emphasised their dedication to meeting consumer demand and contributing to the post-pandemic economic recovery. The expansion not only boosts fuel supply but also brings economic benefits to the region, with ExxonMobil's operations accounting for about one in every seven jobs in the area.

In addition to its economic impact, ExxonMobil is dedicated to being an integral part of the Beaumont community. The company has contributed to local development and improved the quality of life in the region, particularly in the Charlton-Pollard, South Park, and Amelia neighbourhoods. Through community investments, educational initiatives, and employee volunteerism, ExxonMobil strives to make a positive difference in Beaumont and its surrounding areas.

ExxonMobil's investment in Baytown

ExxonMobil is investing heavily in its Baytown complex, which is one of the world's largest integrated and most technologically advanced refining and petrochemical complexes. The company is planning to build a world-scale "blue" hydrogen plant at the site, which will be fuelled by low-carbon hydrogen produced at the facility. This project is expected to cost around $2 billion and is part of ExxonMobil's long-term growth plans to deliver higher-value products from its US Gulf Coast refining and chemical facilities.

The Baytown complex, located about 25 miles east of Houston, Texas, comprises four manufacturing sites and a global technology centre. Employing a workforce of approximately 7,000, the Baytown area sites are highly integrated, making the plants and products more efficient.

The $2 billion investment in the new chemical production units will generate economic development and jobs. During construction, the project supported more than 3,500 jobs, and when fully operational, will directly employ 200 more people.

The new performance polymers line will produce 400,000 metric tons per year of Vistamaxx™ and Exact™-branded polymer modifiers, which can enhance the performance of a broad range of chemical products used to make automotive parts, construction materials, hygiene and personal care products, and various packaging applications.

The new linear alpha olefins unit will produce 350,000 tons per year of Elevexx™-branded products, marking ExxonMobil’s entry into the market. Linear alpha olefins are used in plastic packaging, high-performing engine and industrial oils, and other applications.

ExxonMobil is also expanding its Baytown chemical plant to include a new Vistamaxx™ performance polymer unit, which will produce products with higher levels of elasticity, softness, and flexibility, contributing to a reduction in materials used and increased performance in everyday products.

Additionally, the company has started operations at a large-scale advanced recycling facility in Baytown, which uses proprietary technology to break down hard-to-recycle plastics and transform them into raw materials for new products. This facility is capable of processing more than 80 million pounds of plastic waste per year, supporting a circular economy for post-use plastics and helping divert plastic waste currently sent to landfills.

ExxonMobil's investment in Baton Rouge

ExxonMobil has been an integral part of Baton Rouge's economic, political, and social landscape since 1909. Over the years, the company has made significant investments in the region, contributing to its growth and development.

One of the largest refining and petrochemical complexes in the world, the Baton Rouge operations play a crucial role in supplying essential fuels and chemical products. The site includes a refinery, plastics plant, resins plant, chemical plant, polyolefins plant, and Port Allen lubricants plant. Together, these facilities produce over 3.6 billion gallons of gasoline and billions of pounds of petrochemical products annually.

In recent years, ExxonMobil has proposed and undertaken several major investments in Baton Rouge. In 2020, the company announced plans to invest $240 million in the Baton Rouge Refinery, aiming to boost processing capabilities, enhance flexibility to meet market demands, and improve the site's overall competitiveness. This investment also includes initiatives to reduce volatile organic compound emissions by 10%.

Additionally, ExxonMobil has been considering a $155 million investment to build new facilities at its North Baton Rouge site. This includes an advanced recycling facility for breaking down unrecyclable plastics and a facility for producing isopropyl alcohol used in microchip manufacturing. These projects are expected to bring significant economic benefits to the community and generate $13.5 million in sales and property tax revenue over 20 years.

ExxonMobil's commitment to Baton Rouge extends beyond its business operations. The company actively engages with the community and supports various initiatives, such as the North Baton Rouge Industrial Training Initiative, Drive Minority Business Accelerator, and Introduce a Girl to Engineering Day. In 2022, ExxonMobil invested $2 million in the community, with a focus on education and workforce development.

With a workforce of 6,000 people, ExxonMobil Baton Rouge has been a cornerstone of the local economy, providing quality jobs and contributing to the area's technological innovation. The company's investments in Baton Rouge reflect its dedication to the region's long-term growth and prosperity.

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