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Released December 12, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas) said it expected to double production from its assets in the Permian Basin by 2030 following its acquisition of Pioneer Resources.
ExxonMobil in May completed its acquisition of Pioneer Resources, adding an estimated 1.4 million net acres across the Permian. The Permian is the largest inland source of crude oil in the United States, averaging around 6.3 million barrels per day (BBL/d) this year. That accounts for about half of the total U.S. production, according to the latest U.S. Department of Energy estimates.
In an update Wednesday on its guidance for 2025, the Texas-based company said it believes it is now the largest acreage holder in the Permian, with twice as many drilling locations as its closest rival. It expects to double its production in the Permian to 2.3 million barrels of oil equivalent per day by 2030.
During the third quarter, production on a barrels of an oil equivalent (BOE) basis rose about 15% compared to the first quarter to 4.4 million BOE per day (BOE/d). Much of that came from the Permian.
"Through 2030, we plan to deploy about $140 billion to major projects and the Permian Basin development program," Darren Woods, ExxonMobil's chairman and chief executive officer, said Wednesday. "We expect this capital to generate returns of more than 30% over the life of the investments."
Total capital spend should be in the range of $27 billion to $29 billion. Earnings are expected to be $15 billion more than 2019 levels, and cash flow is on pace to increase as well.
Many of ExxonMobil's peers are targeting cash flow and shareholder returns over investing in new projects. Chevron Corporation (NYSE:CVX) (San Ramon, California) recently said it was pegging capital spending for next year at around $17 billion on the high end, a $2 billion reduction from 2024 levels.
"The 2025 capital budget along with our announced structural cost reductions demonstrate our commitment to cost and capital discipline," said Chevron Chairman and Chief Executive Officer Mike Wirth. "We continue to invest in high-return, lower-carbon projects that position the company to deliver free cash flow growth."
Countering some of the trends seen recently in the industry, ExxonMobil, the largest U.S. oil company, reported profits of $9.2 billion during the third quarter, up from the $7.9 billion sequentially.
Elsewhere, ExxonMobil said it would pursue low-emissions investment opportunities to the tune of $30 billion.
A hydrogen facility associated with its refinery in Baytown, Texas, is expected to be the world's largest, with a production estimate of nearly 1 billion cubic feet per day. Hydrogen is a potent energy carrier, but it's still in the niche phase of development amid higher costs relative to conventional and legacy resources.
A final investment decision on the hydrogen facility at Baytown is expected next year. Operations could begin as early as 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
ExxonMobil in May completed its acquisition of Pioneer Resources, adding an estimated 1.4 million net acres across the Permian. The Permian is the largest inland source of crude oil in the United States, averaging around 6.3 million barrels per day (BBL/d) this year. That accounts for about half of the total U.S. production, according to the latest U.S. Department of Energy estimates.
In an update Wednesday on its guidance for 2025, the Texas-based company said it believes it is now the largest acreage holder in the Permian, with twice as many drilling locations as its closest rival. It expects to double its production in the Permian to 2.3 million barrels of oil equivalent per day by 2030.
During the third quarter, production on a barrels of an oil equivalent (BOE) basis rose about 15% compared to the first quarter to 4.4 million BOE per day (BOE/d). Much of that came from the Permian.
"Through 2030, we plan to deploy about $140 billion to major projects and the Permian Basin development program," Darren Woods, ExxonMobil's chairman and chief executive officer, said Wednesday. "We expect this capital to generate returns of more than 30% over the life of the investments."
Total capital spend should be in the range of $27 billion to $29 billion. Earnings are expected to be $15 billion more than 2019 levels, and cash flow is on pace to increase as well.
Many of ExxonMobil's peers are targeting cash flow and shareholder returns over investing in new projects. Chevron Corporation (NYSE:CVX) (San Ramon, California) recently said it was pegging capital spending for next year at around $17 billion on the high end, a $2 billion reduction from 2024 levels.
"The 2025 capital budget along with our announced structural cost reductions demonstrate our commitment to cost and capital discipline," said Chevron Chairman and Chief Executive Officer Mike Wirth. "We continue to invest in high-return, lower-carbon projects that position the company to deliver free cash flow growth."
Countering some of the trends seen recently in the industry, ExxonMobil, the largest U.S. oil company, reported profits of $9.2 billion during the third quarter, up from the $7.9 billion sequentially.
Elsewhere, ExxonMobil said it would pursue low-emissions investment opportunities to the tune of $30 billion.
A hydrogen facility associated with its refinery in Baytown, Texas, is expected to be the world's largest, with a production estimate of nearly 1 billion cubic feet per day. Hydrogen is a potent energy carrier, but it's still in the niche phase of development amid higher costs relative to conventional and legacy resources.
A final investment decision on the hydrogen facility at Baytown is expected next year. Operations could begin as early as 2029. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
