Thank You ExxonMobil
ExxonMobil has been a long time TapRooT® User.
Often big oil companies, especially Exxon, have been vilified in the press or by politicians when oil prices go up or accidents occur (does Exxon Valdez ring a bell?).
But today I read an article in the Wall Street Journal that should be making headlines across the US.
In these times of economic uncertainty, many companies are cutting back. Layoffs are happening even in industries that aren’t particularly hard hit. Many oil companies are cutting their exploration and capital budgets.
Oil companies also face the uncertainty of major tax increases on their industry (an elimination of depreciation expenses and a carbon tax).
But in the face of this adversity, ExxonMobil is raising spending by $29 Billion Dollars for future oil production and processing.
Note that they don’t have their hands out in Washington for a handout – This isn’t part of a government stimulus plan.
The Houston Chronicle says that:
“ExxonMobil’s increased spending this year will bring nine projects on stream that will add 485,000 barrels per day.”
I know that capital spending is scheduled in advance. Also, ExxonMobil expects to make a profit on these investments and return money to their shareholders (of which I an one). But other companies have slowed or stopped spending because of uncertainty. This slowed spending sends ripples through the economy and people lose their jobs and businesses shut down. So it is great to see a publicly traded company make a bold bet on the future.
This is the kind of stimulus the economy really needs. Sometimes private spending is better than big government programs.
So I say:
THANKS EXXONMOBIL FOR YOUR TRUST IN THE ECONOMY