Texas Department of Transportation Launches Program to Reduce Car Crashes and Fatalities in Permian Basin

The Texas Department of Transportation has launched a program to reduce car crashes and fatalities in the Permian Basin, a region with high crash rates, growing population, and congested roads. The program, which employs 138 workers, provides assistance with stranded vehicles, debris removal, and extinguishing vehicle fires. Since its launch in July, the program has responded to nearly 500 calls and helped over 1,400 drivers. The program aims to deter crashes in the region, which has some of the deadliest roads in the state.

ExxonMobil has announced plans to sell its European chemical plants in the UK and Belgium, marking a significant strategic shift in response to U.S. tariffs, Chinese competition, and broader industry trends [1]. The proceeds from these sales will be channeled into high-return projects, such as expanding production in the Permian Basin and advancing the Golden Pass LNG project [2].

The sale of European chemical assets aligns with ExxonMobil's broader asset rationalization strategy, driven by high energy costs and policy uncertainties in Europe [3]. The company expects to generate billions in proceeds from these divestments, which will be redirected towards more profitable ventures.

A key focus area for the generated funds is the Permian Basin. ExxonMobil aims to boost production from 1.6 million to 2.3 million oil-equivalent barrels per day by 2030, leveraging technological advancements like lightweight proppant use to improve recovery rates and reduce costs [4]. Additionally, the Golden Pass LNG project in Texas, a $10 billion investment, is expected to commence production by late 2025, enhancing export capacity through partnerships with QatarEnergy [4].

ExxonMobil's Q2 2025 results underscore the financial rationale for this reallocation. The company generated $11.5 billion in cash flow from operations and returned $9.2 billion to shareholders, demonstrating its ability to fund both shareholder returns and strategic reinvestment [1]. By shedding underperforming European assets, ExxonMobil is prioritizing projects with shorter payback periods, with over 90% of its 2025–2027 capital expenditures expected to have payback periods under 10 years [3].

While the European divestments signal a retreat from legacy markets, they also free up capital for ExxonMobil's $30 billion energy transition roadmap (2025–2030). Approximately 65% of this investment is earmarked for third-party decarbonization, including carbon capture and storage (CCS), hydrogen, and biofuels [2]. For instance, the company is developing a 1,500-mile CO₂ pipeline network in the U.S. Gulf Coast, leveraging existing infrastructure to reduce costs [4]. These projects align with ExxonMobil's goal to cut third-party emissions by 50 million metric tons annually by 2030 [3].

ExxonMobil's approach contrasts with peers like BP and Shell, which are pivoting toward renewables. Instead, the company is doubling down on technologies that integrate with its core competencies, such as molecule management and industrial-scale infrastructure [4]. This strategy is supported by policy incentives like the U.S. Inflation Reduction Act, which offers tax credits for CCS projects [1].

The financial implications of this reallocation are compelling. Permian Basin production is projected to grow at a 21% compound annual growth rate (CAGR) from 2024 to 2027, while U.S. LNG export capacity is expected to nearly double by 2030 [4]. These projects are anticipated to generate $8 billion in annual cash flow from LNG alone [4]. Meanwhile, ExxonMobil's disciplined cost-cutting—$13.5 billion in savings since 2019—ensures that reinvestment does not compromise shareholder returns [1].

Critically, the company’s dual-track strategy balances near-term profitability with long-term decarbonization. By 2030, ExxonMobil expects to achieve a 40–50% reduction in upstream emissions intensity and expand its Low Carbon Solutions portfolio to $20 billion in opportunities [3]. This positions the company to capitalize on the $6 trillion global market for emissions reduction by 2050 [4].

ExxonMobil’s strategic shift reflects a calculated response to evolving market dynamics. By divesting European chemical plants and reinvesting in high-return energy transition projects, the company is fortifying its position in both the hydrocarbon and low-carbon energy landscapes. For investors, this reallocation signals a commitment to capital discipline and long-term value creation, with projected returns from Permian and LNG projects complementing decarbonization efforts.

References:
[1] ExxonMobil announces second-quarter 2025 results [https://corporate.exxonmobil.com/news/news-releases/2025/0801_exxonmobil-announces-second-quarter-2025-results]
[2] Advancing Climate Solutions | ExxonMobil Sustainability [https://corporate.exxonmobil.com/sustainability-and-reports/advancing-climate-solutions]
[3] ExxonMobil Corporate Plan [https://corporate.exxonmobil.com/news/news-releases/2023/1206_exxonmobil-corporate-plan]
[4] ExxonMobil's Bold Bet on the Permian Basin: Massive Growth [https://finance.yahoo.com/news/exxonmobils-bold-bet-permian-basin-143500752.html]