Exxon Mobil Corp. (NYSE:XOM), one of the largest oil and gas companies in the United States, has announced plans to significantly increase its investment to $28-$33 billion annually. This move is aimed at increasing the company’s oil and gas output by 18% by 2030. Exxon’s goal is to raise its total production to 5.4 million barrels per day (bpd) by the end of the decade, up from its current output of 4.58 million bpd.
According to Exxon CEO Darren Woods, the company’s increased spending is expected to generate returns exceeding 30% over the life of the projects. Woods emphasized that Exxon is focusing on expanding production in low-cost fields, which he believes will give the company a unique competitive advantage in the industry.
A key part of Exxon’s strategy involves boosting production in the Permian Basin, one of the most lucrative oil fields in the U.S. The company aims to more than triple its output in the region to 2.3 million bpd by 2030. Exxon is also targeting a production level of 1.3 million bpd from its highly profitable Guyana operations.
Exxon’s operations in Guyana have seen impressive progress. The company recently announced that it has produced 500 million barrels of oil from the Stabroek block, just five years after it began production there. Exxon’s first three projects in Guyana—Liza Phase 1, Liza Phase 2, and Payara—are already producing over 650,000 barrels per day. The Exxon-led consortium, which includes Hess Corp. (NYSE:HES) and China’s Cnooc (OTCPK:CEOHF), aims to increase production to at least 1.3 million bpd by the end of 2027. This target is expected to be met as six approved offshore projects come online.
Recent data from the Guyana government shows that the consortium generated $6.33 billion in revenue last year, with Exxon earning $2.9 billion, Hess making $1.88 billion, and Cnooc securing $1.52 billion from the Stabroek block. Exxon holds a 45% stake in the block, Hess owns 30%, and Cnooc has a 25% share.
In addition to its oil production, Exxon is preparing to begin producing natural gas from its Guyana assets. SBM Offshore, a Netherlands-based company, has completed the sale of its fifth floating production, storage, and offloading (FPSO) unit to Exxon for use in offshore Guyana. The FPSO Jaguar, which has a production capacity of 250,000 barrels of oil per day, also has the capacity to treat 540 million cubic feet of associated gas daily and inject 300,000 barrels of water per day.
Exxon is also moving forward with a Gas to Energy Project in partnership with the Government of Guyana. The project, which is expected to begin operations by the end of 2024, will further expand the company’s energy production capabilities in the region.
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