ExxonMobil has reduced its planned investment in lower-carbon technologies for the period from 2025 to 2030 from $30bn to $20bn, according to a strategic update released by the company.
The Texas-based oil and gas producer said the revised outlook forms part of a broader strategy aimed at increasing earnings and cash flow by $5bn by 2030, without raising overall capital spending. The update signals a stronger focus on expanding fossil fuel production over the coming years.
Exxon now expects its total production to reach 5.5 million barrels of oil equivalent per day by 2030, up from earlier projections. Around two-thirds of this output is expected to come from its Permian Basin operations, Guyana assets and liquefied natural gas (LNG) portfolio.
In the Permian Basin, the company said it plans to double production by 2030 compared with 2024 levels, citing what it described as a “deep technology pipeline and efficiency gains”. Exxon did not make specific commitments to expanding production in other parts of the United States, despite upcoming changes to offshore oil and gas leasing.
At the same time, Exxon confirmed a reduction in planned spending on lower-carbon fuels, materials and solutions. The company did not provide a detailed explanation for the cut, though it previously paused development of a proposed $7bn hydrogen project in Baytown, Texas, earlier this year, citing limited customer demand.
Of the revised $20bn allocation for lower-carbon investments, Exxon said around 60% will be directed towards technologies and solutions designed to help customers reduce their own emissions. Other focus areas include carbon capture and storage, hydrogen, lithium, and Proxxima systems, an advanced materials technology that the company says can deliver lifecycle greenhouse gas emissions reductions of up to 60% compared with conventional epoxy resins. Exxon said operations at its first Proxxima plant and associated raw materials facility in Texas began earlier this year.
In its update, Exxon said investment in lower-carbon solutions remains important to its long-term growth strategy, stating that such investments are intended to “create a long runway of profitable growth for decades to come”. The company added that it expects more than 40% of its earnings potential this decade to come from what it described as “high-value products”, including Proxxima systems.
