KEY POINTS
- Exxon plans to boost oil and gas production by 18 percent by 2030.
- Annual spending will rise to $33 billion, targeting U.S. shale and Guyana.
- Cost reductions and low-carbon projects remain top priorities for Exxon.
Exxon Mobil has unveiled a bold five-year strategy to increase its oil and gas production by 18 percent while boosting its earnings by $20 billion over 2023 levels.
The company’s new roadmap outlines an annual project spending increase of $28 billion to $33 billion from 2026 to 2030.
The plan comes as Exxon rides a wave of success from its Guyana operations and a boost in U.S. shale production following its acquisition of Pioneer Natural Resources.
Darren Woods, Exxon’s CEO, emphasized the competitive advantage of focusing on low-cost production sites, which he says will generate returns of more than 30 percent over the life of the investments.
“We believe our low-cost operations offer a unique competitive edge in the industry,” Woods stated during a media briefing.
He also hinted at potential mergers and acquisitions, noting that the company’s position strengthens its ability to explore strategic deals.
Exxon’s production surge targets U.S. shale and Guyana expansion
A significant part of Exxon’s production growth is expected to come from its U.S. shale operations and its lucrative ventures in Guyana.
According to Reuters, the company aims to more than triple production in the Permian Basin, the largest shale oil field in the U.S., from 700,000 barrels per day (bpd) to 2.3 million bpd by 2030.
At the same time, Exxon plans to increase production in Guyana to 1.3 million bpd, driven by the development of two new projects.
Overall, Exxon’s oil and gas output is projected to reach 5.4 million bpd by 2030, up from its current 4.58 million bpd.
The company has already reaped substantial rewards from its Guyana operations, which have proven to be a goldmine for Exxon.
The addition of two new projects in Guyana aligns with Exxon’s previously stated goal of developing seven to 10 projects in the region by 2030.
Cost reduction, sustainability, and low-carbon initiatives remain key priorities
Exxon has raised its cost-reduction target from $15 billion to $18 billion by 2030, underscoring its commitment to efficiency.
The company’s Chief Financial Officer, Kathryn Mikells, pointed out that Exxon’s strong balance sheet, with $27 billion in cash and equivalents, gives it the flexibility to weather market fluctuations.
Beyond traditional oil and gas, Exxon continues to build on its low-carbon energy initiatives.
The company has already secured contracts to capture and store 7 million tons of carbon annually through its carbon capture and sequestration operations.
Exxon also plans to expand its role in the growing hydrogen economy, but CEO Woods made it clear that the company’s investments will depend on U.S. regulatory incentives for hydrogen production.
“Our investments will depend on the policies in place,” he said, signaling that regulatory changes could influence Exxon’s next steps.
The company’s move to invest in data center energy supply further diversifies its low-carbon energy initiatives, providing clean energy solutions for the booming tech sector.
