ExxonMobil to Increase, Accelerate Permian Output to 1 Million Barrels Per Day by 2024
05 Mars 2019 - 3:00PM
Business Wire
- Updated plans call for nearly 80
percent more unconventional production
- Doubling of production in 2018
increases confidence in growth plans
- Increased spending to generate
double-digit returns at low prices
ExxonMobil said today it has revised its Permian Basin growth
plans to produce more than 1 million oil-equivalent barrels per day
by as early as 2024 – an increase of nearly 80 percent and a
significant acceleration of value.
The size of the company’s resource base in the Permian is
approximately 10 billion oil-equivalent barrels and is likely to
grow further as analysis and development activities continue.
“We’re increasingly confident about our Permian growth strategy
due to our unique development plans,” said Neil Chapman, ExxonMobil
senior vice president. “We will leverage our large, contiguous
acreage position, our improved understanding of the resource and
the full range of ExxonMobil’s capabilities in executing major
projects.”
“Our plans are attractive at a range of prices and we expect
them to drive more value as we continue to lower our development
and production costs,” Chapman said.
ExxonMobil’s investments in the Permian Basin are expected to
produce double-digit returns, even at low oil prices. At a $35 per
barrel oil price, for example, Permian production will have an
average return of more than 10 percent.
The anticipated increase in production will be supported by
further evaluation of ExxonMobil’s Delaware Basin’s increased
resource size, infrastructure development plans, and secured
capacity to transport oil and gas to ExxonMobil’s Gulf Coast
refineries and petrochemical operations through the
Wink-to-Webster, Permian Highway and Double E pipelines.
Among the company’s key advantages in the Permian, is its
acreage position. The company has large, contiguous acreage that
enables multi-well pads in large development corridors connecting
to efficient gathering systems, reducing development costs and
accelerating production growth. ExxonMobil’s scale, financial
capacity and technical capabilities enable the company to maximize
the value of the resource.
ExxonMobil is actively building infrastructure to support volume
growth. Plans include construction at 30 sites to enhance oil and
gas processing, water handling and ensure takeaway capacity from
the basin. Construction activities include central delivery
facilities designed to handle up to 600,000 barrels of oil and 1
billion cubic feet of gas per day and enhanced water-handling
capacity through 350 miles of already-constructed pipeline.
“These investments support growth plans and ensure that as
production levels continue to rise, we are well positioned in
processing and transportation capacity,” Chapman said.
The investment plans will also bring great benefits to the local
area. ExxonMobil’s expansion in the region will benefit communities
in West Texas and southeast New Mexico through billions in property
tax revenue, economic development and the creation of high-paying
jobs.
ExxonMobil remains one of the most active operators in the
Permian Basin and has 48 drilling rigs currently in operation and
plans to increase its rig count to approximately 55 by the end of
the year.
Increased use of technology, including enhanced subsurface
characterization, subsurface modeling and advanced data analytics
to support optimization and automation, will help the company
reduce costs, improve its development plan and increase resource
recovery.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products and its chemical company is one of
the largest in the world. For more information, visit
www.exxonmobil.com or follow us on Twitter
www.twitter.com/exxonmobil.
Cautionary Statement: Statements of future events or
conditions in this release are forward-looking statements. Actual
future results, including future production rates and timing;
investment returns; infrastructure plans, capacities, and results;
resource recoveries; production and development costs; rig counts;
emission reductions; efficiencies and impacts of technology; and
economic development impacts could differ materially due to changes
in market conditions affecting the oil, gas and petrochemical
industries or long-term price levels for oil, gas, refined products
and petrochemicals; political and regulatory developments including
changes in environmental laws and regulations; the ability to
implement development, production, operating and management
improvements as planned; reservoir performance; the actions of
competitors; the occurrence and duration of economic recessions;
the outcome of commercial negotiations; technical and operating
factors; and other factors discussed in this release and under the
heading “Factors Affecting Future Results” on the Investors page of
ExxonMobil’s website at www.exxonmobil.com. As used in this release
references to future returns mean discounted cash flow returns
based on current company estimates and exclude prior exploration
and acquisition costs. References to the resource base,
oil-equivalent barrels and similar terms include quantities of oil
and gas that are not yet classified as proved reserves under SEC
definitions but that are expected ultimately to be moved to the
proved reserves category and produced in the future.
Forward-looking statements in this release are based on
management’s information and belief at the time of this release and
we assume no duty to update these statements as of any future date.
This release is not intended to override the corporate separateness
of various entities, including affiliated companies.
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