ExxonMobil has announced plans to triple total daily production to more than 600,000 oil-equivalent barrels by 2025 from its operations in the Permian Basin in West Texas and New Mexico.
Tight oil production from the Delaware and Midland basins will increase five-fold in the same period.
The company said recent changes in the U.S. corporate tax rate create an environment for increased future capital investments, including ExxonMobil’s plan to spend more than US$2 billion on transportation infrastructure to support its Permian operations.
Through capital efficient production growth, the increased volumes will be driven by reduced drilling costs, technology improvements and expanded acreage. ExxonMobil has amassed a large, highly contiguous acreage position, located in the prolific, multi-layered oil zones of the Delaware and Midland basins.
Combined with operating experience gained through drilling more than 5,000 horizontal unconventional wells, and a leading-edge technology organization, ExxonMobil has the ability to efficiently and profitably develop this attractive resource.
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.
“Our geographic and competitive advantages in the Permian position the company for strong growth and long-term value creation,” said Sara Ortwein, president of ExxonMobil’s XTO Energy subsidiary. “We can deliver profitable production at a range of prices, and we have logistics and technology advantages over our competitors.”