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Exxon sees earnings from fuels, chemicals rising by a third to $16B by 2027

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Exxon Retail Gas station. ExxonMobil is the World's largest oil and gas company.

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Exxon Mobil (NYSE:XOM) announced on Wednesday its projection that earnings from refined products and chemicals will increase to $16 billion by 2027, surpassing current levels by approximately $4 billion, as demand for these products continues to rise.

During a briefing at the company’s headquarters in Spring, Texas, executives predicted that gasoline demand will not reach its peak until the latter part of this decade, offering a differing perspective from the International Energy Agency, which recently stated that it anticipates a decline in the consumption of oil for transportation fuels after 2026.

β€œAlthough gasoline demand is expected to reach its peak towards the end of this decade, it will then stabilize at a high level for an extended period,” explained Senior Vice President Jack Williams during the briefing.

Exxon’s merged refining, petrochemicals, and low-carbon business unit, which is now capable of swiftly adapting to the market demand for fuels and chemicals based on their profitability, will benefit from this trend, according to Karen McKee, the president of the Product Solutions unit.

The company’s recently expanded Baytown, Texas refinery, which operates alongside a chemical unit, positions Exxon to transition from predominantly producing fuels to chemicals, revealed Williams, clarifying that while refining will remain relevant, there will be a substantial focus on chemical production moving forward.

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