IRVING, US: ExxonMobil Corporation said that it plans to triple total daily production to more than 600,000 oil-equivalent barrels by 2025, from its operations in Permian Basin (West Texas) and New Mexico.
Tight oil production from the Delaware and Midland basins will increase five-fold in the same period.
Recent changes in the US corporate tax rate create an environment for increased future capital investments, including ExxonMobil’s plan to spend more than $2 billion on transportation infrastructure to support its Permian operations.
ExxonMobil is one of the most active operators in the Permian Basin. To help achieve this growth, the horizontal rig count in the Permian is expected to increase a further 65 percent over the next several years. ExxonMobil has doubled its footage drilled per day on horizontal wells in the Permian since early 2014 and reduced per-foot drilling costs by about 70 percent.
Through its $6 billion Bass companies acquisition in 2017, ExxonMobil added an estimated resource of 3.4 billion barrels of oil equivalent, with upside potential in multiple additional prospective horizons. A large majority of the development drill wells from the purchase are projected to have attractive returns at oil prices below current levels.
The increased production will provide low-cost supply and feedstocks to ExxonMobil downstream and chemical operations in Baytown, Beaumont and Mt Belvieu, Texas, and Baton Rouge, Louisiana. These facilities manufacture high-value products, including polyethylene to meet growing demand for high-performance plastics and advanced synthetic lubricant base stock products.
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