ExxonMobil Corp. plans $34 billion in capital spending during 2015, representing a 12% decrease from 2014.
Further cuts are expected in 2016-17, when annual capital and exploration expenditures are expected to average less than $34 billion. Company spending peaked in 2013 when its budget was $42.5 billion (OGJ Online, Mar. 5, 2014).
“We are capturing savings in raw materials, service, and construction costs,” explained Rex W. Tillerson, ExxonMobil chairman and chief executive officer.
During the next 3 years, the company expects to start up 16 major oil and natural gas projects and is on track to increase production to 4.3 million boe/d by 2017.
Production in 2015 is expected to rise 2% to 4.1 million boe/d, driven by 7% liquids growth. The increase is supported by the ramp up of several projects completed in 2014 and the expected startup of seven new major developments in 2015, including Hadrian South in the Gulf of Mexico, expansion of the Kearl project in Canada, Banyu Urip in Indonesia, and deepwater expansion projects at Erha in Nigeria and Kizomba in Angola.
In 2016 and 2017, production ramp up is expected from several projects including Gorgon-Jansz in Australia, Hebron in eastern Canada, and expansions of Upper Zakum in United Arab Emirates, and Odoptu in Far East Russia.
ExxonMobil said its downstream and chemical businesses, meanwhile, remain resilient in the lower commodity price environment and continue to generate solid cash flow, helped by abundant North American crude and gas supplies that have led to lower feedstock and energy costs.