OUTLOOK, OPPORTUNITIES SPARK MOBIL OUTLAYS

Mobil Corp. will increase its capital and exploration spending to an estimated $5 billion plus this year from $4.4 billion last year. Allen E. Murray, chairman and chief executive officer, told the Mobil shareholders annual meeting capital spending is influenced by "an encouraging assessment of the future, Mobil's ability to compete favorably, an abundance of attractive investment opportunities, and environmental requirements." Murray said excess crude supply could depress prices for a

May 27, 1991

2 min read

Mobil Corp. will increase its capital and exploration spending to an estimated $5 billion plus this year from $4.4 billion last year.

Allen E. Murray, chairman and chief executive officer, told the Mobil shareholders annual meeting capital spending is influenced by "an encouraging assessment of the future, Mobil's ability to compete favorably, an abundance of attractive investment opportunities, and environmental requirements."

Murray said excess crude supply could depress prices for a short time. Longer term, the trend is for increasing demand, especially in developing areas.

"This should result in a tightening of supply with crude prices increasing, on average, at least with the pace of inflation," he said.

Murray expects a better supply/demand balance for petroleum products with long term improvement in profits in Europe, Japan, and the rest of the Pacific Rim.

"U.S. margins are still below par," he said, "but refining capacity is tight and, with the end of the recession, sales should pick up."

PROJECTS FOR GROWTH

Murray cited a list of Mobil projects around the world holding growth opportunities:

In the U.S., heavy oil development in California, increased sales from a service station modernization program, and the recent purchase of Tucker Housewares by Mobil's chemical arm.
Hibernia oil field development in the Grand Banks area off Newfoundland.
Direct marketing of natural gas production in the U.K. and the emerging single European market.
Development of Oso condensate field off Nigeria.
A $600 million upgrading and expansion of the Singapore refinery, which will enhance its ability to process low quality crudes. The expansion will include construction of an aromatics complex for Mobil Chemical, which will respond to the Asia Pacific's growing demand for raw materials to produce synthetic fibers such as nylon and polyester.
Establishment of the firm's first producing affiliate in 19 years in Australia.