ExxonMobil is recovering from the pandemic downturn with $23 billion in profits and plans to expand in the Permian Basin

Sometimes things get worse before they get better. That appears to be the case for ExxonMobil, which made a few announcements this week showing the company may have rebounded from the pandemic: it raked in billions last year, announced it would up its oil and gas production volumes in West Texas for the second year in a row, and will relocate its headquarters to Houston in an effort to further streamline its business structure. As the world grappled with the Coronavirus pandemic in 2020, the Texas-based oil major slashed spending, sold off assets, and cut 1,900 US workers – including more than 700 employees in Houston. Still, the multinational corporation reported historic losses totaling around $22.4 billion dollars.

However, on Tuesday the company announced $23 billion in profits in 2021. "Our effective pandemic response, focused investments during the down-cycle, and structural cost savings positioned us to realize the full benefits of the market recovery in 2021," ExxonMobil CEO Darren Woods wrote in a statement. "Our new streamlined business structure is another example of the actions we are taking to further strengthen our competitive advantages and grow shareholder value." Part of ExxonMobil's strategy includes focusing on certain oil and gas exploration and production projects, and the company has raised investment and output in the Permian Basin of West Texas and New Mexico. As part of its 2021 earnings announcement, ExxonMobil said it will increase production volumes by 25% this year. Scientists are clear that we are not moving away from fossil fuels fast enough to avoid catastrophic damage from global warming. Devastating predictions about climate change are already coming true in the form of massive wildfires, intensifying hurricanes, and events like Winter Storm Uri, which resulted in widespread power outages and hundreds of deaths across Texas. Those events disproportionately impact marginalized communities that are already under-resourced.