USA: Downstream and Chemicals Production Exxon Mobil to Invest 2 Billion Dollars in Permian Oil Production
Exxon Mobil 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.
Irving/USA — Tight oil production from the Delaware and Midland basins will increase five-fold in the same period, the company said in a statement. The oil company plans to spend more than $ 2 billion on transportation infrastructure to support its Permian operations. As part of the expansion in the region, the horizontal rig count in the Permian is to increase by 65 % over the next several years. Exxon Mobil 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 %.
Through its $ 6 billion Bass companies acquisition in 2017, the company added an estimated resource of 3.4 billion barrels of oil equivalent, with upside potential in multiple additional prospective horizons.
The increased production will provide supply and feedstocks to downstream and chemical operations in Baytown, Beaumont and Mt. Belvieu, Texas, and Baton Rouge, Louisiana. These facilities manufacture products, such as polyethylene.
As part of its Permian-focused infrastructure, the company recently acquired a crude oil terminal in Wink, Texas that is positioned to handle Permian crude oil and condensate from Delaware basin sources near the Texas-New Mexico border for transport to Gulf Coast refineries and marine export terminals.
The company plans to expand the Wink terminal and add key infrastructure upgrades that will efficiently move their own and third-party production from the Delaware, Central and Midland basins in the Permian to the company's operations and other market destinations in the Gulf Coast region. Those investments, expected to exceed $ 2 billion.