What is ExxonMobile Up To

Last year ExxonMobil (XOM) produced about 4.2 million barrels of oil/day. Is that enough ? Probably not. To add to their existing production volume, ExxonMobil has decided to invest in more than 20 new projects around the world over the next 3 years. This would bring in an additional 1 million barrels of oil/day to its volumes at peak production.

Capital Spending
Capital spending is projected to be around $20 billion/year through the rest of this decade. Isnt this something to worry about ? $20 billion/year for an extra one million barrels a day in production ? So what does Exxon have to say about that ? Probably nothing...Just that Exxon's volume will keep growing through the end of the decade.
So where does Exxon plan to invest ?
Exxon has an ownership interest in 40 refineries located in 20 countries. 20 new projects the company plans to invest in will be mature markets such as North America, Australia and the North Sea, as well as growth areas like the Middle East, Russia and West Africa.

Venezuela Story
Exxon has decided to turn over the control of a joint project in Venezuela's oil-rich Orinoco River region to its partner, Petroleos de Venezuela SA, Venezuela's government-controlled oil company, now that President Hugo Chavez has ordered the nationalization of all foreign-run oil projects. Exxon is also in talks with Libya to get access to the country's enormous oil fields.

Qatar Story
In another news ExxonMobil and Qatar Petroleum announced they were abandoning their joint gas-to-liquids project that sought to produce clean diesel from natural gas, instead focusing on providing natural gas to Qatar.

Earnings
Recently Exxon posted the largest annual profit by a U.S. company of $39.5 billion thanks to high energy prices as crude oil topped $78 a barrel in the summer. Stock prices stand at $71.12. The shares have traded in a range of $56.64 to $79 in the past year. However what bothers me is the capital spending.