ExxonMobil: Oil to account for most new production in 5 years

Paula Dittrick
OGJ Senior Staff Writer

HOUSTON, Mar. 17 -- ExxonMobil Corp. expects to add nearly 1.4 million boe/d net to its production by 2016, and oil will account for 80% of that new production, company executives recently told analysts in New York.

“There is no bias for us one way or the other,” ExxonMobil’s Chairman and Chief Executive Officer Rex Tillerson said of the company’s oil-gas production ratio. “Our bias is to make money.” During 2010, ExxonMobil’s overall production was 54% oil. Total 2010 average production was 4.5 million boe/d.

ExxonMobil plans to deliver 120,000 boe/d net in 2011 from 2010 project startups. The company’s average reserve replacement unit cost during 2005-09 was $8/boe. Proved reserves equal 24.8 billion boe, up 8% from 2009.

“Our ability to replace more reserves than we produce at attractive unit cost positions us to continue to deliver profitable volume growth in the future,” Tillerson said.

During 2012-13, Tillerson expects 10 projects will come on stream, including 2 projects in Angola, 3 in Nigeria, 1 oil sands project in Canada, the first phase of Kashagan oil field development in Kazakhstan, and the Kipper-Tuna gas project in Australia’s Gippsland basin.

Unconventional production plans
Andy Swiger, ExxonMobil senior vice-president, said the company’s unconventional resources account for more than 40% of the company’s total 84 billion boe resource base. This includes heavy oil and oil sands, gas and oil shales, coalbed methane reservoirs, and tight gas sands across about 6 million acres from northern Canada to South Texas.

Two of ExxonMobil’s fastest-growing gas shale plays are the Haynesville of East Texas and the Fayetteville of Arkansas.

ExxonMobil is running 13 rigs in the Haynesville to delineate its 240,000 net acre position. During 2010, gross operated production increased more than fourfold to 240 MMcfd.

“We have also successfully completed our first wells targeting the overlying Bossier shale,” Swiger said.

In the Fayetteville, ExxonMobil reported 2010 yearend production of 210 MMcfd of gas. A 9-rig program is delineating acreage and accelerating pad drilling across 550,000 acres where multiple pilots are under way.

ExxonMobil has 410,000 net acres in the Bakken formation of Montana and North Dakota. Seven rigs drilled wells in the Three Forks and the Bakken as of Mar. 9, Swiger said. During 2010, ExxonMobil drilled 63 Bakken wells.

In the Eagle Ford, Exxon holds 120,000 acres where it drilled 15 wells in 2010, focusing on the gas, condensate, and oil windows.

“We are delineating this acreage using two rigs, while leveraging our existing south Texas transportation and processing inventory infrastructure, Swiger said. “Our position in the Bakken and the Eagle Ford development is enhanced by our vast experience and substantial operations in the liquids-rich Permian basin where we hold 470,000 acres prospective for a number of emerging liquids-rich plays.”

Exxon continues to build positions in numerous other liquids-rich plays across the US and Canada, he said.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

BHI: US oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

BHI: US rig count posts first increase in 29 weeks

06/26/2015 Buoyed by respective rises in natural gas-directed and offshore rigs, the US drilling rig count gained 2 units during the week ended June 26 to rea...

Breitling Energy seeks to tap multiple levels of stacked shale in Permian

06/11/2015 Breitling Energy Corp. of Dallas earlier this year announced completion plans for two Permian basin wells that sought to tap multiple levels of sta...

Hybrid generator cuts fuel use, power costs for Permian operators

06/11/2015 Operators in the Permian basin and elsewhere increasingly are relying upon a hybrid generator that can eliminate the need for a third generator on ...

EIA: US shale oil output to decline 91,000 b/d in July

06/09/2015 Crude oil production in July from seven major US shale plays is expected to drop 91,000 b/d to 5.49 million b/d compared with June, according to th...

BHI: US rig count continues steady but shrinking decline


The US drilling rig count dropped 7 units during the week ended June 5 to settle at 868 rigs working, according to data from Baker Hughes Inc.

Apache to reorganize into three regions

06/01/2015 Apache Corp. reported plans to restructure the company into three “super regions” following a series of acquisitions and divestitures over the last...

BHI: US rig count decline shrinks to 6 this week, settles at 888

05/15/2015 The trend of shrinking declines in the US drilling rig count continued during the week ended May 15. Just 6 units were laid down to settle at a tot...

Encana records 1Q net loss of $1.7 billion

05/12/2015 Encana Corp. posted a first-quarter net loss of $1.7 billion primarily due to a noncash, aftertax ceiling test impairment and a non-operating forei...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected