ExxonMobil is planning to triple the production in Permian Basin

Image courtesy of CNBC

Image courtesy of CNBC

ExxonMobil announced that it plans to triple total daily production to more than 600,000 oil-equivalent barrels by 2025 from its operations in the Permian Basin in West Texas and New Mexico. Tight oil production from the Delaware and Midland basins will increase five-fold in the same period.
Recent changes in the U.S. corporate tax rate create an environment for increased future capital investments, including ExxonMobil’s plan to spend more than $2 billion on transportation infrastructure to support its Permian operations.
The increased production will provide low-cost supply and feedstocks to ExxonMobil downstream and chemical operations in Baytown, Beaumont and Mt. Belvieu, Texas, and Baton Rouge, Louisiana.
As part of its Permian-focused infrastructure, ExxonMobil recently acquired a crude oil terminal in Wink, Texas that is strategically positioned to handle Permian crude oil and condensate from Delaware basin sources near the Texas-New Mexico border for transport to Gulf Coast refineries and marine export terminals.
ExxonMobil previously announced plans to build and expand manufacturing facilities in the U.S. Gulf region as part of its Growing the Gulf initiative.
Growing the Gulf projects include a new ethane steam cracker at the company’s integrated Baytown facility that will provide ethylene feedstock for two new high performance polyethylene units at the nearby Mont Belvieu facility. A new production unit at the company’s polyethylene plant in Beaumont will increase the plant’s capacity by 65 percent, and expansions at Baytown and Beaumont refineries will add more than 300,000 barrels per day of light crude processing capacity.