Exxon Mobil Corp anticipates its motor fuels and chemicals earnings to reach $16 billion by 2027, up approximately $4 billion from current levels as demand rises, sccording to the company’s officials.

The largest American oil business has seen great profits from refining this year, thanks in part to a significant increase in processing capacity and a focus on chemicals with better margins. In contrast to other analysts, executives predict that the peak in petrol demand won’t occur until the end of this decade.

“Toward the end of this decade we see gasoline demand peaking, but it will be a long plateau,” Exxon Senior Vice President Jack Williams said at briefing at its Spring, Texas, headquarters.

Exxon merged its once independent businesses in oil refining and chemicals, and it reconfigured its operations to enable swift switching between fuels and chemicals depending on which generates the biggest profit.

Its prognosis on fuels is different from that of the International Energy Agency, a coalition of oil-consuming countries, which predicts a fall in the use of oil as a transportation fuel after 2026. According to the US government, petrol consumption in the US probably peaked in 2018.

According to Karen McKee, president of the Product Solutions division, Exxon’s combined business units for petrochemicals, low-carbon products, and refining will capitalise on market need for each.

“We have the hypothesis this could be a game changer for Exxon Mobil,” McKee said.

In January, the refinery at Exxon’s Beaumont, Texas, facility added 250,000 barrels per day (bpd). The current 619,024 bpd facility primarily produces diesel fuel by processing crude from Exxon’s West Texas oilfields.

It is operating incredibly well, according to McKee.

According to Williams, the refineries will be able to supply new markets as the demand for fuel declines without needing to expand further.

“We’re going to be upgrading units rather growing our throughput,” he said.

The business will be able to transition from predominantly producing fuels to chemicals thanks to its 564,440 barrel per day (bpd) Baytown, Texas refinery, which is located next to a chemical unit, according to Williams.

“Refining’s not going to go away. (But) a lot of it will be toward chemicals,” he added.

(Adapted from BusinessTimes.com.sg)