XOM Exxon Mobil Corp

   By Micah Maidenberg 
 

Exxon Mobil Corp. (XOM) is boosting production in the Permian Basin and expects to generate more than 1 million oil-equivalent barrels per day from the Permian Basin as soon as 2024, the oil giant said Tuesday.

The company will grow its drilling-rig count in the prolific oil-and-gas region in Texas and New Mexico from 48 at present to 55 by the end of the year.

Exxon also said Tuesday it believes its investments in the region will generate double-digit returns even if oil prices fall. If the price of a barrel of oil decreases to $35, the company's Permian production would still offer an average return of 10%, according to Exxon.

Oil majors including Chevron Corp. and Exxon have been expanding their holdings in the Permian Basin, where producers have used shale-drilling techniques to boost energy production.

Exxon added that it now has about 10 billion oil-equivalent barrels under its control in the Permian.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

March 05, 2019 09:46 ET (14:46 GMT)

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