Oil giant to increase 2009 spend to $29bn

Exxon Mobil Corporation, the world's largest publicly traded petroleum and natural gas company, said on Thursday it was planning to increase its capital spending in 2009 to $29 billion from $26 billion, despite the drop in oil prices.

Senior vice president and treasurer Donald Humphreys said the company would invest between $25-30bn a year for next five years, adding the global energy demand was set to rise 35 percent by 2030.

Oil prices have slumped more than $100 from their record high of more than $147 a barrel back in July 2008. On Thursday, crude was trading at just under $43.

Exxon, which has 37 refineries worldwide, and a 56m barrels per day (bpd) capacity, is the largest investor in the energy industry in Saudi Arabia , has operations in Qatar and Egypt as well as a presence in Abu Dhabi and Dubai.

Speaking at the Wharton Global Alumni Forum in Dubai, he said Exxon Mobil hadn't changed its capital budget plan unlike many of its competitors faced by the global economic crisis.

"The global energy business is a vital part of the world economy and has the potential to help reignite a much needed recovery in growth in the midst of a downturn," he added.

He said hydrocarbons would continue to play a critical role in world's future energy market and that by 2030 oil would account for 34 percent of global energy needs with natural gas contributing 25 percent.

He forecast that by 2030, global energy demand would be 35 percent higher than in 2005 with demand from developing countries especially China and India driving the growth.

He added that by the same date, the Middle East would also be a substantial market.

On clean energy, Humphreys said the company had invested more than $1.5bn since 2004 in activities to reduce greenhouse emissions and it planned to spend another $500m in energy efficient solutions over next few years.