6 Mar 2014 More

ExxonMobil Slated for Record-setting Year

posted by Brown Books @ 10:09 0 Comments

ExxonMobil headquarters
ExxonMobil says it will begin production on ten new major projects in 2014.  The company believes this will add as much as 300 mbopd, this according to Chairm and CEO Rex Tillerson.

“These projects exemplify our focus on maintaining a diversified portfolio and highlight our ability to grow profitable volumes,” says Tillerson.  “We are adding new volumes that improve our profitability mix with higher liquids and liquids linked natural gas volumes. We're also driving increased unit profitability through better fiscal terms and reducing low-margin barrel production.”

Even with the ten new projects, capital spending for America’s largest producer will be down from 2013. The company projects capital spending will drop to $39.8 billion in 2014 from $42.5 billion the year prior.

“We have financial flexibility to pursue potential strategic opportunities and maintain a disciplined and selective approach to capital that ensures any new investment will contribute to robust cash flow growth,” says Tillerson.

2014 a big year

Among those new projects will be an LNG venture in Papua New Guinea and even the largest O&G platform in the world to be constructed in Russia.  The company has big expansion plans in both Canada and in the Gulf of Mexico as well.

On top of that, ExxonMobil says it will be expanding its markets in Australia, Indonesia, Canada, Nigeria and the United States as well.  The company estimates the sum total of these projects will add as much as 1 mmbopd by the year 2017.

“We have a balanced and diversified portfolio that gives us a fundamental competitive advantage,” says Tillerson. “Resource and geographic diversity across the portfolio enables us to mitigate risks in a dynamic market environment and maximize profitability through changing business cycles.”

Downstream and chemical

ExxonMobil says it will continue adding strength to both the downstream and chemical segments of its business.  At the same time, the company will be bolstering its midstream capabilities.  This will help facilitate getting its product to market.

“In the Downstream and Chemical segments, we are diversifying feedstocks through our flexible and integrated system, continuously pursuing operating efficiencies and maximizing sales of higher-margin lubes, diesel and chemical products,” says Tillerson.

Company announces 103 percent reserves replacement

Earlier, ExxonMobil announced it had replaced 103 percent of 2013 production.  It did this by adding proven O&G reserves totaling 1.6 bpoe. 

“Our industry-leading record of long-term reserves replacement demonstrates the success of our global strategy to identify, evaluate, pursue and capture high-quality opportunities,” says Tillerson. “The size and diversity of ExxonMobil's global resource base, the largest held by an international oil company, provide us with unequaled investment flexibility to profitably develop new supplies of energy to meet future demand.”

Proved reserves for 2013 total 25.2 bpoe.  Of that, 53 percent were liquids.  That’s up by 2 percent in 2012.

This makes 20 years in a row now that the company has replaced greater than 100 percent of its production.  Replacement of liquids came in at 104 percent while natural gas was even better at 141 percent.

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by Philip Loyd, Brown Editor

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