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Researched by Industrial Info Resources (Sugar Land, Texas)--The new year hasn't been so happy for the energy sector: Oil prices plunged on the outset, and industry leaders and analysts expect the slump to continue throughout much of the year. Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) is among the hardest-hit, with a full-year profit that stands as its third-lowest since 2000. But Exxon is not cutting its capital-spending outlook. Industrial Info is tracking more than $84.5 billion in active Exxon projects worldwide, including more than $2.6 billion worth that are set to begin construction in the U.S. and Canada in the first half of 2020.
Click on the image at right for a graph detailing Exxon's U.S. and Canadian projects set to kick off through the end of June, by industrial sector.
Exxon's net income for 2019 stood at about $14.3 billion, a 31% decline from 2018; for the fourth quarter, it was reported to be about $5.7 billion, a 5.2% decline from fourth-quarter 2018. But that includes a major asset sale in Norway during the fourth quarter, which added $3.7 billion to Exxon's earnings; minus that, net income would have plunged 66% from the same period last year.
Nonetheless, the company had some good news in regards to production: Full-year output increased 3.1% over 2018, relaxing some concerns that the fossil-fuel giant was looking at a long-term production slowdown. Among the largest projects set to begin construction in the coming months is from Imperial Oil Limited (TSX:IMO) (Calgary, Alberta), in which Exxon has a 69.6% ownership: the estimated $2 billion Aspen Bitumen Processing Plant near Fort McMurray, Alberta, which is designed to process 75,000 barrels per day (BBL/d) with steam-assisted gravity drainage (SAGD) technology. The project includes drilling five well pads, each with between seven and 21 well pairs. For more information, see Industrial Info's project report.
In the Gulf of Mexico, Exxon is at work on an estimated $20 million expansion of its GA-209 platform in the Galveston Oil and Gas Field, which includes a pair of soon-to-be-drilled wells. Arena Offshore LP, the project operator, plans to connect the new wells to the platform's existing subsea infrastructure. For more information, see Industrial Info's project report.
Recently, analysts have been pointing to China's coronavirus outbreak as a major reason for January's plunge in oil prices; China, the world's second-largest economy, is a key driver of global oil demand. The international response to the outbreak has involved a long list of travel restrictions from countries on every continent, which is expected to slash demand for transportation fuels.
But even before the Wuhan-based virus grabbed headlines, the fossil-fuel sector was facing a low-price outlook for much of 2020, with companies such as Chevron Corporation (NYSE:CVX) (San Ramon, California) posting billions of dollars in write-downs for shale gas and other assets. For details, see February 3, 2020, article - Chevron Looks Past Brutal End to 2019 Toward Big-Ticket Projects in Permian, Gulf, and January 30, 2020, article - Marathon Petroleum Ups its Game in Permian, Other Shale Plays with $8 Billion in Projects.
Capital-Spending Plan Points to Permian
Darren Woods, the chief executive officer of Exxon, vowed to raise Exxon's global production from 4 million to 5 million barrels of oil-equivalent per day in 2020. Woods said the company would boost its annual capital spending by $4 billion to $5 billion, for a total of more than $30 billion, by focusing on some of its most productive areas, including the Permian Basin. Despite what Woods called "extremely challenging market conditions," Exxon's unconventional development in the Permian saw a 54% growth in production from the fourth quarter of last year.
The company already is at work on its 650-mile Wink-to-Webster Pipeline, which is expected to carry up to 1 million BBL/d of crude oil and condensate from Wink, a city in the Permian, to multiple locations along the Texas Gulf Coast. The pipeline includes an estimated $45 million pump station in Columbus, Texas, that is projected to begin construction in the near future. The pipeline, including the pump station, is slated to finish construction next summer. For more information, see Industrial Info's project report.
"We continue to like what we are seeing in our Permian development," Woods said in a quarterly earnings-related conference call. He later added: "We are still in the relatively early days of this development, particularly in the Delaware Basin. For perspective, we've developed roughly 20% of our resource in the Midland and only around 3% of our resource in the Delaware."
Woods noted that Exxon expects to make "considerable progress" with an additional 200,000 barrels of oil-equivalent per day by year-end, along with the estimated $150 million Husky Centralized Delivery Point in Carlsbad, New Mexico, which is expected to process 200 million standard cubic feet per day of natural gas from Lea County, New Mexico, which sits atop the Permian. For more information, see Industrial Info's project report.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking $233 million in maintenance-related projects from Exxon that are set to begin work through the end of June. Click here for a list.
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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing Exxon's U.S. and Canadian projects set to kick off through the end of June, by industrial sector.Exxon's net income for 2019 stood at about $14.3 billion, a 31% decline from 2018; for the fourth quarter, it was reported to be about $5.7 billion, a 5.2% decline from fourth-quarter 2018. But that includes a major asset sale in Norway during the fourth quarter, which added $3.7 billion to Exxon's earnings; minus that, net income would have plunged 66% from the same period last year.
Nonetheless, the company had some good news in regards to production: Full-year output increased 3.1% over 2018, relaxing some concerns that the fossil-fuel giant was looking at a long-term production slowdown. Among the largest projects set to begin construction in the coming months is from Imperial Oil Limited (TSX:IMO) (Calgary, Alberta), in which Exxon has a 69.6% ownership: the estimated $2 billion Aspen Bitumen Processing Plant near Fort McMurray, Alberta, which is designed to process 75,000 barrels per day (BBL/d) with steam-assisted gravity drainage (SAGD) technology. The project includes drilling five well pads, each with between seven and 21 well pairs. For more information, see Industrial Info's project report.
In the Gulf of Mexico, Exxon is at work on an estimated $20 million expansion of its GA-209 platform in the Galveston Oil and Gas Field, which includes a pair of soon-to-be-drilled wells. Arena Offshore LP, the project operator, plans to connect the new wells to the platform's existing subsea infrastructure. For more information, see Industrial Info's project report.
Recently, analysts have been pointing to China's coronavirus outbreak as a major reason for January's plunge in oil prices; China, the world's second-largest economy, is a key driver of global oil demand. The international response to the outbreak has involved a long list of travel restrictions from countries on every continent, which is expected to slash demand for transportation fuels.
But even before the Wuhan-based virus grabbed headlines, the fossil-fuel sector was facing a low-price outlook for much of 2020, with companies such as Chevron Corporation (NYSE:CVX) (San Ramon, California) posting billions of dollars in write-downs for shale gas and other assets. For details, see February 3, 2020, article - Chevron Looks Past Brutal End to 2019 Toward Big-Ticket Projects in Permian, Gulf, and January 30, 2020, article - Marathon Petroleum Ups its Game in Permian, Other Shale Plays with $8 Billion in Projects.
Capital-Spending Plan Points to Permian
Darren Woods, the chief executive officer of Exxon, vowed to raise Exxon's global production from 4 million to 5 million barrels of oil-equivalent per day in 2020. Woods said the company would boost its annual capital spending by $4 billion to $5 billion, for a total of more than $30 billion, by focusing on some of its most productive areas, including the Permian Basin. Despite what Woods called "extremely challenging market conditions," Exxon's unconventional development in the Permian saw a 54% growth in production from the fourth quarter of last year.
The company already is at work on its 650-mile Wink-to-Webster Pipeline, which is expected to carry up to 1 million BBL/d of crude oil and condensate from Wink, a city in the Permian, to multiple locations along the Texas Gulf Coast. The pipeline includes an estimated $45 million pump station in Columbus, Texas, that is projected to begin construction in the near future. The pipeline, including the pump station, is slated to finish construction next summer. For more information, see Industrial Info's project report.
"We continue to like what we are seeing in our Permian development," Woods said in a quarterly earnings-related conference call. He later added: "We are still in the relatively early days of this development, particularly in the Delaware Basin. For perspective, we've developed roughly 20% of our resource in the Midland and only around 3% of our resource in the Delaware."
Woods noted that Exxon expects to make "considerable progress" with an additional 200,000 barrels of oil-equivalent per day by year-end, along with the estimated $150 million Husky Centralized Delivery Point in Carlsbad, New Mexico, which is expected to process 200 million standard cubic feet per day of natural gas from Lea County, New Mexico, which sits atop the Permian. For more information, see Industrial Info's project report.
In addition to the abovementioned capital-spending projects, Industrial Info is tracking $233 million in maintenance-related projects from Exxon that are set to begin work through the end of June. Click here for a list.
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. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
