Guyana key to Exxon’s future plans

Dec 12, 2024 News

—as company sets target to boost oil production here to 1.7M barrel per day by 2030

Kaieteur News- ExxonMobil on Wednesday said its annual project spending will rise to between US$28 billion and US$33 billion between 2026 and 2030 as it looks to boost its oil and gas output by 18%, with Guyana playing a key role in this endeavour.

In a statement on Wednesday, ExxonMobil’s CEO Darren Woods said the company continues to strengthen its Upstream portfolio of advantaged assets that offer lower cost of supply and higher returns. He said by 2030, at a 2024-dollar real Brent price of US$65 per barrel, a real Henry Hub price of US$3 per mmbtu, and a real TTF price of US$6.50 per mmbtu, the company plans to deliver an additional US$9 billion in Upstream annual earnings potential – more than 50% higher than in 2024.

Guyana key to Exxon’s future plans

Woods noted that with the Pioneer acquisition, the company reached its target of having more than 50% of its total Upstream production from advantaged assets (Permian, Guyana, and LNG), three years earlier than planned. By 2030, more than 60% of the company’s production is expected to come from these advantaged assets, which are expected to grow by an additional 1.2 million oil-equivalent barrels per day (Moebd) during that period. Total Upstream production is expected to reach 5.4 Moebd by 2030, even as the company plans to lower its operated Upstream emissions intensity 40-50% versus 2016.

“Following its acquisition and integration of Pioneer, ExxonMobil expects to achieve more than US$3 billion in annual synergies, a more than 50% increase from prior guidance,” Woods said. He said the company now has the largest contiguous acreage position in the Permian Basin with double the number of low-cost net drilling locations versus the next closest competitor. The company is applying its technology advantage to increase capital efficiency and resource recovery and expects to roughly double production in the Permian Basin to approximately 2.3 Moebd by 2030. ExxonMobil also announced plans for two additional developments in Guyana, Hammerhead and Longtail, bringing the total number of developments to eight by 2030. Total production capacity in Guyana, on an investment basis, is expected to reach 1.7 million barrels per day with gross production growing to 1.3 million barrels per day by 2030.

According to a Reuters article, the new targets by the company come as Exxon is riding high. Its Guyana operations are generating huge profits and U.S. shale business is on track to double oil production this year through its acquisition of Pioneer. In LNG, it is a mixed bag with setbacks in its U.S. and Mozambique projects.

ExxonMobil CEO, Darren Woods

Woods said the increased project spending is expected “to generate returns of more than 30% over the life of the investments.”

Exxon aims to more than triple its production in the Permian, the top U.S. shale field, to 2.3 million barrels per day (bpd) by 2030 and pump 1.3 million bpd from its lucrative Guyana operations. Overall oil and gas output should hit 5.4 million bpd, up about 18% from roughly 4.58 million bpd currently.

The company’s shares were down a fraction in pre-market trading to US$112.30 with many of the projects and targets already known. Exxon said it will add two projects in Guyana by 2030, in line with a previous statement of 7 to 10 total, while its LNG target remains 40 million metric tons per annum.

The new targets aim to assure shareholders that returns can be sustained through oil market price swings. Global benchmark Brent crude is expected to drop to about US$75 per barrel next year from US$81 this year, squeezing oil company profits. But Exxon’s 12.7% year-to-date share gain is well above the sector’s about 8.4% appreciation as measured by energy mutual fund. Its share-price increase contrasts with from double-digit percentage declines in shares in ConocoPhillips and Occidental Petroleum this year. (Reuters)

(Guyana key to Exxon’s future plans)

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annual synergies, ExxonMobil’s CEO Darren Woods, Guyana key to Exxon’s future plans, Upstream portfolio, Upstream production

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