Exxon Mobil, the largest publicly traded oil business in the world said on Monday it is planning to invest $35 billion over the upcoming five years in the United States.
CEO and Chairman of Exxon Darren Woods said in one of his blog posts that the huge investment is due in part to the recently passed corporate tax overhaul. The company’s announcement puts it on board with several other companies that announced bonuses for employees as well as investments following the tax overhaul of President Donald Trump and Republican lawmakers.
The investments are supported by the strengths of Exxon Mobil and have been enhanced by the tax reform that recently become law, said Woods in his blog post. He added in the post that the positive developments mean that more jobs will become available and economic growth will take place across the U.S. in many different industries.
In his post, Woods said the company would invest more than $50 billion during the next five years, but a company spokesperson clarified that later by saying $15 billion of the spending had already been announced.
As part of Exxon’s investment, the company is planning to increase its production in the shale oil region of western Texas and the eastern part of New Mexico known as the Permian basin, where the low production costs have attracted many drillers.
Exxon explained that it would expand operations, make infrastructure improvements, and build manufacturing sites; all activities that it is expecting will create thousands of jobs.
Exxon doubled its holdings in 2017 in the Permian basin through acquiring companies. The acquisition of $5.6 billion ranked as the second biggest deal in gas and oil exploration in the U.S., according to data released by an industry research firm.
Woods added that the investment announced on Monday is on top of the billions Exxon already earmarked in 2017 to projects on the Gulf Coast of the U.S.
In March, Exxon said it would be spending $20 billion on build refining, lubricant, chemicals, and liquefied natural gas plants along the Gulf Coast. It said at that time its goal was to create over 12,000 jobs as a result of the investment.
On Monday, Woods said Exxon could expand its Gulf Coast facilities, pending evaluation of how the lower taxes impact several projects that are currently in their planning stage.