June 9, 2021 Read More →

ExxonMobil underperforming in Permian oil production, data suggests

Reuters: 

Exxon Mobil Corp’s oil wells in part of a marquee U.S. shale field generated fewer barrels per well as it ramped up overall spending and production, according to a new report that looks at data from 2018-2019.

A $6.6 billion acquisition in 2017 of New Mexico acres doubled Exxon holdings in the Permian Basin that spans west Texas and New Mexico. The Permian’s New Mexico portion is among Exxon’s priorities with a goal to boost shale output to 700,000 bpd by 2025.

Exxon’s average liquids output over a well’s first 12 months fell to 521 barrels per day (bpd) in 2019 in its Delaware basin holdings in New Mexico, down from an average of 635 bpd in 2018, according to IHS Markit data compiled by the Institute for Energy Economics and Financial Analysis (IEEFA).

It dropped to 6th from first on a per-well production basis among a group of large, publicly-trade producers, the data showed, behind Occidental Petroleum, EOG Resources, and others.

Full data for 2020 is not yet available and many wells across the basin were shut-in due to the pandemic, but initial findings of data that looks at the peak month of a well’s production “suggest that the company’s Delaware wells have continued to fall behind,” said Clark Williams-Derry, an IEEFA analyst.

[  Jennifer Hiller  ]

More: Exxon’s shale output per well slips as total production rises

Posted in: IEEFA In the News

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