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Exxon says it'll invest over $50 billion, citing tax cut

3 months 3 weeks 4 days ago Monday, January 29 2018 Jan 29, 2018 January 29, 2018 4:23 PM January 29, 2018 in News
Source: Associated Press
By: Associated Press

DALLAS (AP) - Exxon's CEO says the oil company will invest more than $50 billion over the next five years to expand its business in the U.S.

Chairman and CEO Darren Woods said Monday that the investments are possible because of the company's strength and helped by the recent law that cut taxes on corporations.

"The recent changes to the U.S. corporate tax rate coupled with smarter regulation create an environment for future capital investments and will further enhance ExxonMobil’s competitiveness around the world. We’re actively evaluating the impact of the lower tax rate on the economics of several other projects currently in the planning stages to further expand our facilities along the Gulf Coast," Stephanie Cargile, Public and Government Affairs Manager of ExxonMobil told WBRZ.

Exxon plans to increase oil production in Texas and New Mexico and build new manufacturing plants.

"Baton Rouge capital project investments in 2017 totaled approximately $340 million and included projects at all five of our local facilities. We are experiencing a window of increased capital investment opportunity. With the low cost of natural gas in the US and the growing demand for plastics and polymers across the world, we are investing more in new projects along the Gulf Coast, which includes Louisiana," Cargile says.

Woods says they are quality investments for shareholders that are made better by tax reform.

A chorus of business leaders have praised the tax law, which cut the corporate income-tax rate from 35 percent to 21 percent. Republicans say the law will spur growth and create jobs. Democrats say it favors the wealthy and adds to the federal budget deficit.

"Hopefully we will be able to bring some of this increased investment to Baton Rouge. We looked to invest where there is a good business environment, predictable tax and regulatory structure, strong transportation infrastructure, and a qualified workforce. We want Louisiana to be a strong competitor for future investment that Exxon Mobil may be considering."

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