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Released January 14, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) narrows its focus in North America to its most productive assets, the oil and gas giant is divesting its less profitable properties in areas such as the U.S. Appalachian region and Canada's Montney and Duvernay shale plays. Despite recent increases in global oil and gas prices, ExxonMobil and other industry majors have been re-evaluating their holdings after prices crashed during 2020's COVID-19 outbreak, while investors have been pressuring executives to scale back inessential fossil-fuel developments. Industrial Info is tracking more than $23 billion worth of active ExxonMobil projects across the U.S. and Canada.
Click on the image at right for a graph detailing ExxonMobil's active projects in the U.S. and Canada, by industry sector.
ExxonMobil's U.S. divestments will allow the company to focus on what it called "high-grade assets" in its most recent quarterly earnings-related conference call--in particular, the Permian Basin. "We continue to evaluate where we can better leverage our competitive strengths and high-grade our portfolio," said Darren Woods, the chief executive officer of ExxonMobil, in the call. "I think you'll see the opportunity set that underpins our divestment portfolio grow."
ExxonMobil recently announced its refinery in Beaumont, Texas, would expand its refining capacity by as much as 65% through 2023, driven by an expected increase in crude oil processed from the Permian Basin. The company plans to increase capacity of the 344,000-barrel-per-day (BBL/d) facility by installing a $2 billion third crude unit, which will process another 250,000 BBL/d. Other additions will include a kerosene hydrotreater and 45,000-BBL/d diesel hydrotreater.
The Beaumont Refinery also is preparing for a $400 million expansion of supporting components, such as new transportation facilities and at least three new storage tanks, and is preparing to begin work on a $30 million delayed coker unit that will boost capacity from 45,000 to as much as 70,000 BBL/d through the addition of two coke drums. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can read detailed project reports on the third crude unit, new supporting components and delayed coker unit at Beaumont.
Among the properties ExxonMobil and its subsidiaries intend to sell off are 27,000 acres in Ohio's Utica Shale. It is not yet known how other facilities in the Marcellus and Utica shale plays will be affected, such as the Penn Cryo Gas-Processing Plant in Renfrew, Pennsylvania, which is the site of a proposed, 125 million-standard-cubic-foot-per-day cryogenic train expansion. Subscribers can learn more from Industrial Info's project report.
In the Western Canadian region, ExxonMobil and its affiliate, Imperial Oil Limited (TSX:IMO) (Calgary, Alberta), own equal shares in XTO Energy Canada, which operates both companies' Canadian shale assets. Imperial announced earlier this week that XTO's assets for sale include 568,000 acres in the Montney Shale and 85,000 acres in the Duvernay Shale, along with smaller spots across Alberta.
ExxonMobil and Imperial say net production from the Montney and Duvernay shales amounts to about 140 million cubic feet per day of natural gas and about 9,000 BBL/d of crude, condensate and natural gas liquids (NGL). Both companies say a definitive decision to sell the assets has not yet been made.
In Canada, ExxonMobil and Imperial are shifting their attention to newer, more energy-efficient fuel sources. The companies are considering a renewable diesel complex in Edmonton, Alberta, at their 187,000-BBL/d Strathcona Refinery. The proposed addition would process 20,000 BBL/d of locally sourced bio-feedstock and blue hydrogen, toward a goal of 40,000 BBL/d by 2025. ExxonMobil says the project would offset 3 million metric tons of CO2 from transportation emissions every year, and a carbon capture and storage (CCS) unit will capture 500,000 metric tons per year. Subscribers can learn more from Industrial Info's project report.
"The Strathcona project is not what I would say is an industry-standard biofuels project," Woods said in the call. "We're leveraging our process technology, our catalyst technology to change the value proposition."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing ExxonMobil's active projects in the U.S. and Canada, by industry sector.ExxonMobil's U.S. divestments will allow the company to focus on what it called "high-grade assets" in its most recent quarterly earnings-related conference call--in particular, the Permian Basin. "We continue to evaluate where we can better leverage our competitive strengths and high-grade our portfolio," said Darren Woods, the chief executive officer of ExxonMobil, in the call. "I think you'll see the opportunity set that underpins our divestment portfolio grow."
ExxonMobil recently announced its refinery in Beaumont, Texas, would expand its refining capacity by as much as 65% through 2023, driven by an expected increase in crude oil processed from the Permian Basin. The company plans to increase capacity of the 344,000-barrel-per-day (BBL/d) facility by installing a $2 billion third crude unit, which will process another 250,000 BBL/d. Other additions will include a kerosene hydrotreater and 45,000-BBL/d diesel hydrotreater.
The Beaumont Refinery also is preparing for a $400 million expansion of supporting components, such as new transportation facilities and at least three new storage tanks, and is preparing to begin work on a $30 million delayed coker unit that will boost capacity from 45,000 to as much as 70,000 BBL/d through the addition of two coke drums. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can read detailed project reports on the third crude unit, new supporting components and delayed coker unit at Beaumont.
Among the properties ExxonMobil and its subsidiaries intend to sell off are 27,000 acres in Ohio's Utica Shale. It is not yet known how other facilities in the Marcellus and Utica shale plays will be affected, such as the Penn Cryo Gas-Processing Plant in Renfrew, Pennsylvania, which is the site of a proposed, 125 million-standard-cubic-foot-per-day cryogenic train expansion. Subscribers can learn more from Industrial Info's project report.
In the Western Canadian region, ExxonMobil and its affiliate, Imperial Oil Limited (TSX:IMO) (Calgary, Alberta), own equal shares in XTO Energy Canada, which operates both companies' Canadian shale assets. Imperial announced earlier this week that XTO's assets for sale include 568,000 acres in the Montney Shale and 85,000 acres in the Duvernay Shale, along with smaller spots across Alberta.
ExxonMobil and Imperial say net production from the Montney and Duvernay shales amounts to about 140 million cubic feet per day of natural gas and about 9,000 BBL/d of crude, condensate and natural gas liquids (NGL). Both companies say a definitive decision to sell the assets has not yet been made.
In Canada, ExxonMobil and Imperial are shifting their attention to newer, more energy-efficient fuel sources. The companies are considering a renewable diesel complex in Edmonton, Alberta, at their 187,000-BBL/d Strathcona Refinery. The proposed addition would process 20,000 BBL/d of locally sourced bio-feedstock and blue hydrogen, toward a goal of 40,000 BBL/d by 2025. ExxonMobil says the project would offset 3 million metric tons of CO2 from transportation emissions every year, and a carbon capture and storage (CCS) unit will capture 500,000 metric tons per year. Subscribers can learn more from Industrial Info's project report.
"The Strathcona project is not what I would say is an industry-standard biofuels project," Woods said in the call. "We're leveraging our process technology, our catalyst technology to change the value proposition."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
