ExxonMobil plans five-year investment of $185B to develop new energy supplies; 21 major oil and gas projects to begin production between 2012 and 2014
08 March 2012
Exxon Mobil Corporation plans to invest approximately $185 billion over the next five years to develop new supplies of energy to meet expected growth in demand, Chairman and CEO Rex W. Tillerson said in a presentation at the New York Stock Exchange.
Tillerson said that even with significant efficiency gains, ExxonMobil expects global energy demand to increase by 30% by 2040, compared to 2010 levels. Demand for electricity will make natural gas the fastest growing major energy source and oil and natural gas are expected to meet 60% of energy needs over the next three decades.
To help meet that demand, ExxonMobil is anticipating an investment profile of approximately $37 billion per year through the year 2016.
A total of 21 major oil and gas projects will begin production between 2012 and 2014. In 2012 and 2013, the company expects to start up nine major projects and anticipates adding more than 1 million net oil-equivalent barrels per day by 2016. At the meeting the company outlined its major achievements in 2011 and plans for the future. Highlights include:
- ExxonMobil replaced 107% of its 2011 production (116% excluding asset sales), increasing proved reserves to 24.9 billion oil equivalent barrels. It was the 18th consecutive year the company replaced more than 100% of its production, with proved reserve additions of 1.8 billion oil-equivalent barrels.
Nine major upstream projects are expected to start-up in the next two years including four in West Africa, Kashagan Phase 1 in Kazakhstan and the Kearl Oil Sands project in Canada.
In the downstream, the company completed a large project at the Thailand refinery, which is expected to increase the supply of lower sulfur motor fuels by more than 50 thousand barrels per day. Additional projects are under way, including new facilities at ExxonMobil’s Singapore refinery and at a joint-venture refinery in Saudi Arabia.
A major expansion at the Singapore chemicals facilities is nearing completion. Commissioning and startup activities are expected to continue through 2012 and will provide a world-scale integrated platform with unparalleled feedstock flexibility. The expansion will add 2.6 million tonnes per year of additional capacity and will help meet demand growth in Asia Pacific.
Peak Oil has not happened yet and may not happened for decades?
Crude consumption is shifting East. Shell closed its last refinery in our region because very low cost clean Hydro electricity is much cheaper and will reap future markets. Heating oil usage is already down to the last drops.
Posted by: HarveyD | 08 March 2012 at 09:21 AM
If you watch the movie Gasland, you will see Exxon's part in it. They have bought into natural gas and will be a big player going forward.
Posted by: SJC | 08 March 2012 at 10:47 AM
What happens when the NG market collapses due to ultra low cost electricity? Some may prefer gas stoves over electric. And some CHP systems using NG will survive.
But who can beat electricity for 0.1 cent/kWh??
Posted by: Reel$$ | 08 March 2012 at 11:48 AM
So the US consumes about 20 million barrels per day, that's 7.3 billion per year. The Exxon proven reserves of 24.9 billion is 3 years. Peak oil? Damn straight.
Posted by: Eletruk | 08 March 2012 at 06:41 PM
What we are seeing and have seen for a while is the symptoms of the cause. We have used half of the world's oil and the other half is harder to get, more expensive and belongs to someone else.
Posted by: SJC | 09 March 2012 at 09:04 AM