Exxon led record profits among oil majors in the second and third quarters this year, aided by its highly criticized decision during the COVID-19 pandemic to double down on fossil fuels as European competitors shifted to renewables.
The strategy boosted its shares by more than 60% this year – far ahead of rivals Shell PLC (SHEL.L) and BP PLC (BP.L) – as oil prices rose to their highest levels since 2008 after Russia’s invasion of Ukraine.
“The results we’ve seen to date demonstrate that we’re on the right course,” Chief Executive Darren Woods said in a corporate filing.
The plan, which brought no surprises, is a continuation of Exxon’s current strategy to “produce the energy and products society needs” while reducing greenhouse gas emissions from its own operations and also from other companies, Woods said.
Exxon’s spending budget extends a plan set a year ago to spend $21 billion-$24 billion in 2022.
The largest U.S. oil producer also said it will raise to $17 billion its spending in lower carbon projects through 2027, up from $15 billion.
The company has been steadily boosting investments in lower carbon projects since a quarter of its directors lost their seats in 2020 to outsiders who rejected Exxon’s slow energy transition plans.