The oil giant Exxon Mobil has announced it will invest an extra $50 billion in the American economy, citing Republican’s recently passed tax reform.
In a blog post, Exxon CEO Darren Woods cited tax reform as well as “sound tax and regulatory policies” as well as a “pro-growth business climate” as major factors behind the investment.
“These investments are underpinned by the unique strengths of our company and enhanced by the historic tax reform recently signed into law,” Woods wrote. “These positive developments will mean more jobs and economic expansion across the United States in a myriad of industries.”
“These are quality investments for our shareholders that are made even better by tax reform,” Woods continued. “These are all possible because of the resource base developed by our industry along with sound tax and regulatory policies that create a pro-growth business climate here in the U.S.”
The move will see Exxon increase its production of shale oil in the Permian Basin in western Texas and eastern New Mexico, where drilling costs are relatively low. It will also involve the company improving its existing infrastructure and constructing new manufacturing sites, creating as many as 12,000 new jobs.
As a result of last year’s historic tax reform package, companies have seen the corporate tax rate reduced from 35 to 21 percent. Dozens of companies including Apple, Comcast, and J.P Morgan have since announced additional investment in the U.S. economy, while over a hundred companies have offered their employees bonuses or salary increases.
According to the International Monetary Fund, the reforms will reform will help accelerate both U.S. and global economic growth to 3.9 percent over 2018.