Exxon seeks to triple its production in the Permian Basin
Exxon Mobil said Tuesday it plans to triple its oil and gas production in west Texas' booming Permian Basin as part of its heightened emphasis on U.S. growth.Exxon is one of the few companies that are converting their refining capacity to deal with the light crude coming out of the Permian Basin. With increased production and changes to refinery capacity, it is putting the US on the road of energy independence.
The country's largest energy company said it aims to grow its Permian production to 600,000 barrels a day by 2025 and also spend more than $2 billion on transportation and terminal upgrades in west Texas, including expanding its crude oil terminal in Wink, Texas.
Exxon Mobil is beginning to break out specifics of its spending plans after announcing Monday that it wants to invest $50 billion in the U.S. during the next five years, in part because of extra financial benefits gained from the new U.S. tax law.
The production growth and transportation upgrades will help feed Exxon Mobil's expanding refineries and petrochemical plants in Baytown, Mont Belvieu, Beaumont and Baton Rouge, La. with much of the oil and natural gas liquids they need to churn out fuels and plastics.
"With this production growth, we are well positioned to maximize value as increased supply moves from the Permian to our Gulf Coast refineries and chemical facilities where higher-demand, higher-value products will be manufactured," Ortwein added.
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Exxon Mobil is planning to spend about $20 billion on refining, petrochemical and liquefied natural gas growth along the Texas and Louisiana Gulf Coast. Much of that work is being completed now, while some projects are awaiting the final go ahead.