ExxonMobil
is planning to tripe its crude oil production capacity in the Permian
Basin by 2025 and expand its transportation infrastructure.
The firm intends to reach daily production capacity to more than 600,000 oil-equivalent barrels from its operations in the Permian Basin in West Texas and New Mexico, by 2025.
ExxonMobil said that its tight oil production from the Delaware and Midland basins will be increased five-fold by that year.
In order to boost its Permian operations, the oil firm plans to
invest more than $2bn on Wink terminal and add key infrastructure
upgrades.
The expansion of crude storage terminal is expected
to help the firm to effectively handle Permian crude oil and condensate
supply to Gulf Coast refineries and marine export terminals.
ExxonMobil XTO Energy subsidiary president Sara Ortwein:
“Our geographic and competitive advantages in the Permian position the
company for strong growth and long-term value creation.
“We can deliver profitable production at a range of prices, and we have logistics and technology advantages over our competitors.”
The company said that the increased volumes will be driven by reduced
drilling costs, technology improvements and expanded acreage.
Ortwein added: “With this production growth, we are well
positioned to maximize value as increased supply moves from the Permian
to our Gulf Coast refineries and chemical facilities where
higher-demand, higher-value products will be manufactured.”
As part of the new expansion effort, ExxonMobil plans to increase the
horizontal rig count in the Permian to a further 65% over the next
several years.
The firm said that the expanded production capacity will provide
low-cost supply and feedstocks to its downstream and chemical operations
in Baytown, Beaumont and Mt. Belvieu, Texas, and Baton Rouge,
Louisiana, US.
As a result, the firm will have the capacity to meet growing demand
for high-performance plastics and advanced synthetic lubricant base
stock products.
In a blog post, ExxonMobil chairman and CEO Darren Woods said that
the company will invest $50bn over the next five years to expand its
business in the US.
Woods said: "The recent changes to the U.S. corporate tax rate
coupled with smarter regulation create an environment for future capital
investments and will further enhance ExxonMobil’s competitiveness
around the world."
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