Supergiant oil company Exxon Mobil Corp. (NYSE:XOM) says it plans to simultaneously cut spending and launch production at a record 10 major projects this year, adding 300,000 barrels of oil equivalent per day of net capacity to its portfolio.
Exxon Mobil’s capital spending will decline to $39.8 billion this year from a peak of $42.5 billion in 2013, with capital expenditures expected to average less than $37 billion per year from 2015 to 2017, excluding potential acquisitions.
At the same time, the company will boost output with major new projects coming online this year, including a liquefied natural gas (LNG) project in Papua New Guinea and the largest offshore oil and gas platform in Russia, as well as a heavy oil expansion project in Canada and deepwater projects in the Gulf of Mexico.
Over the next few years, Exxon Mobil anticipates additional project startups in several countries, including Australia, Indonesia, Malaysia, Canada, Nigeria, and the U.S., adding a total of 1 million net boe/d by 2017. Overall, the company is pursuing more than 120 projects to develop 24 billion boe.
“We have a balanced and diversified portfolio that gives us a fundamental competitive advantage. Resource and geographic diversity across the portfolio enables us to mitigate risks in a dynamic market environment and maximize profitability through changing business cycles,” Exxon Mobil CEO Rex Tillerson said.
Liquids production is expected to rise 2 percent this year and 4 percent/year during 2015-17, representing the majority of the company’s total production increase. Liquids and liquids linked to natural gas are projected to account for 69 percent of the company’s total production by 2017.
ExxonMobil is also pursuing investment opportunities to expand its chemical business and serve major growth markets.