ExxonMobil revised its Permian Basin (Texas and New Mexico) growth plans to produce more than 1 million oil-equivalent barrels per day by as early as 2024 – an increase of nearly 80 percent and a significant acceleration of value.
Exxon’s resource base in the Permian is approximately 10 billion oil-equivalent barrels and is likely to grow further as analysis and development activities continue. Exxon’s current Permian reserves would last about 30 years at the 1 million barrel per day rate.
ExxonMobil is actively building infrastructure to support volume growth. Plans include construction at 30 sites to enhance oil and gas processing, water handling and ensure takeaway capacity from the basin. Construction activities include central delivery facilities designed to handle up to 600,000 barrels of oil and 1 billion cubic feet of gas per day and enhanced water-handling capacity through 350 miles of already-constructed pipeline.
Exxon Mobil plans to reduce the cost of pumping oil in the Permian to about $15 a barrel which is a level only seen in the giant oil fields of Saudi Arabia.
The shale revolution has made the Permian into the world’s largest shale field. it is producing over 4 million barrels a day, which is more than the Saudi Arabia Ghawar oil field.
Chevron announced plans last week for 900,000 barrels a day by 2023. Royal Dutch Shell Pis looking for deals to bulk up its Permian operations.
If all of these plans come to fruition then Texas-New Mexico oil production from the Permian could surpass Saudi Arabia oil production by 2025. Saudi Arabia is currently producing at 9.8 million barrels per day.
SOURCES- Exxon, Rigzone
Written By Brian Wang