ExxonMobil Corp. has set its capital spending budget for 2017 at $22 billion, up 16% from 2016. Capital and exploration expenses through the end of the decade will average $25 billion/year.
More than one quarter of the company’s planned spending this year will be made in short-cycle opportunities—those expected to generate positive cash flow in less than 3 years after initial investment—including in the Permian and Bakken, the company says.
The company says it has an inventory of more than 5,500 wells in the Permian and the Bakken with a rate of return of more than 10% at $40/bbl, with nearly one third generating higher returns. Total annual net production growth from the basins through 2025 could be as high as 750,000 boe/d at a compound annual growth rate of 20%.
The company also will advance longer-term projects in areas such as Canada, Guyana, and the UAE. Guyana startup is expected by 2020, fewer than 5 years after the initial discovery well (OGJ Online, Jan. 12, 2017).
ExxonMobil expects the startup of five major upstream projects in 2017-18, which will contribute an additional 340,000 boe/d of working-interest production capacity. Odoptu Stage 2 in Far East Russia and the Hebron project in Eastern Canada are expected to start up by yearend. Other projects planned for startup in the period are the Upper Zakum expansion in the UAE, Barzan in Qatar, and Kaombo in Angola.
The company has an upstream portfolio of nearly 100 projects that are in various stages of planning, concept selection, and construction.
ExxonMobil says the investments will support upstream volumes that are projected at 4 million-4.4 million boe/d through 2020.