Story by Mella McEwen
ExxonMobil officials, like all other oil and gas producers, are closely watching the current economic climate. The company recently announced a reduction of 2,000 jobs — none in the U.S. — as part of a long-term restructuring plan.
“We are worried about prices,” said Rich Dealy, vice president, Permian Basin, with ExxonMobil.
Addressing Hart Energy’s Dug Permian conference, he continued, “Our depth of inventory is impressive even at current prices.”
Dealy said ExxonMobil is worried less about oil prices and more about efficiency gains, with a team of skilled workers focused on improving efficiencies and refining drilling and completion costs. A vast majority of its Permian Basin wells and operations are monitored from a central hub.
“We have a number of good zones across the basin,” he said. He sees the rising amount of natural gas being produced in association with crude oil as an opportunity, but the Permian needs sufficient takeaway capacity to realize that opportunity.
The multinational giant currently produces 1.5 million barrels per day from its Permian Basin holdings, with plans to increase that to 2.3 million barrels per day by 2030.
“The Permian is a gift to the U.S.,” he said, predicting ExxonMobil will be developing resources in the Permian Basin for decades to come. “We predict production will continue to grow, oil and natural gas demand will still be tremendous, at least through midcentury.” Despite the rising use of renewables, he said the company estimates oil and gas will still provide over 50% of the world’s energy.
https://www.msn.com/en-us/news/other/exxonmobil-permian-growth-targets-2-3m-bpd-by-2030/