The company slashed costs after a historic US$22.4 billion loss last year. But an oil-price rebound this year has generated strong profits that let Exxon pay down debt, maintain its dividend and fund a new low-carbon business. The budgets extend a plan Exxon set to spend about US$16 billion this year and thereafter increase outlays to between US$20 billion and US$25 billion to 2025.
The new budget was approved by a board that includes three new members elected by investors demanding the company cut spending, boost returns and better address climate concerns. It includes a fourfold increase in low-carbon initiatives, to a total of US$15 billion through 2027.
More than half will target emissions reductions from Exxon sites and around 40% will be spent on hydrogen, carbon capture projects and biofuels, the company told analysts in a call.
Exxon plans to reduce greenhouse gas emissions per unit of oil and gas production by 40% to 50% through 2030, compared to 2016 levels.
Production in Guyana is expected to increase six-fold to 750 000 bpd in 2026, Permian should reach 700 000 boe/d in 2025 and Brazil 220 000 boe/d in 2024, finance chief Kathryn Mikells said.
Read the latest issue of Oilfield Technology in full for free: Issue 3 2021
Oilfield Technology’s third issue of 2021 starts with a report from Wood Mackenzie focusing on the upstream industry’s fortunes in Asia-Pacific. The rest of the issue is dedicated to features covering offshore engineering, coiled tubing, frac technology, completion technologies, water management, well placement and much more.
Exclusive contributions come from Wild Well Control, Cudd Pressure Control, TMK, NOV, Archer, Tendeka, TETRA Technologies and more.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/02122021/exxonmobil-outlines-corporate-plans-to-2027/
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