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.
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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.
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