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Exxon Eyes 80% Growth in Permian Output by 2024; Boasts 73% Rig Jump YOY

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ExxonMobil has revised its Permian Basin growth plans to produce more than 1 million oil-equivalent barrels per day by as early as 2024 - an increase of nearly 80%.  The company has a large, contigious footprint in the basin to the tune of ~1.6 million net acres.

Exxon Active Permian Basin Rigs

Exxon mobil Permian basin Rig Rampup.

As a result of the drilling/rig ramp, production is similarly responding, below is the company production forecast (10/3/2018) of 800 Mboe/d as of 2025.

The size of the company's resource base in the Permian is approximately 10 billion oil-equivalent barrels.

Neil Chapman, ExxonMobil senior vice president, said: "We're increasingly confident about our Permian growth strategy due to our unique development plans. We will leverage our large, contiguous acreage position, our improved understanding of the resource and the full range of ExxonMobil's capabilities in executing major projects. Our plans are attractive at a range of prices and we expect them to drive more value as we continue to lower our development and production costs."

The company is it 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.

ExxonMobil's investments in the Permian Basin are expected to produce double-digit returns, even at low oil prices. At a $35 per barrel oil price, for example, Permian production will have an average return of more than 10 percent.