#production

By Steve Gelsi

Domestic oil and gas production takes center stage in Exxon's latest capital project list

Exxon Mobil Corp. has announced plans to spend $140 billion in the Permian Basin region as part of a plan by the oil and gas giant to ramp up its earnings and return cash to shareholders with a focus on U.S. production.

The move comes after Exxon (XOM) topped upstream production expectations in the third quarter, after spending $60 billion to buy Pioneer Natural Resources, an acreage holder in the Permian Basin of West Texas.

Its cost savings for the Pioneer deal will total $3 billion, which is 50% more than its previous projections, the company said.

The oil major said its big spend in the Permian Basin will generate returns of more than 30% by 2030, which will drive cash returns to shareholders.

Exxon said it will buy back $20 billion in stock in 2026 after spending the same big sum in 2025 to repurchase its stock.

Exxon Mobil's stock was down 0.3% in premarket trading on Wednesday. The stock has risen 12.7% so far in 2024, while the S&P 500 SPX is up by 26.5%.

"The company's capital allocation approach prioritizes competitively advantaged, high-return, low-cost-of-supply investments," the company said.

It'll spend $27 billion to $29 billion on capital projects in 2025, which will be the first first full year of Pioneer in its portfolio.

Looking ahead, Exxon Mobil expects to earn an additional $20 billion and $30 billion in cash flow, with a compound annual earnings growth rate of 10%.

It's also targeting $7 billion in cost savings. Its cost savings for the Pioneer deal will total $3 billion, which is 50% more than its previous projections.

Some other major capital projects underway include:

-- A boost in production from Guyana by developing two additional projects called Longtail and Hammerhead. The oil major expects total production capacity of 1.7 million barrels per day by 2030 in Guyana.

-- Liquid natural gas (LNG) production investment including first LNG sales from the Golden Pass development in the U.S and from the Qatar North Field East expansion project in 2025. In 2026, it's planning to make final investment decisions at the Rovuma development in Mozambique and the Papua project in Papua New Guinea in 2026.

-- The world's first large-scale carbon capture and storage system for carbon dioxide for permanent subsurface storage capacity throughout the U.S. Gulf Coast.

-- ExxonMobil is targeting 2029 to start operations on what it bills as the world's largest low-carbon hydrogen facility in Baytown. It'll produce uip to 1 billion cubic feet of "virtually" carbon-free hydrogen per day with about 98% of the carbon dioxide captured and stored.

• Steve Gelsi

https://www.morningstar.com/news/marketwatch/20241211219/exxon-pouring-140-billion-into-the-permian-basin-after-rise-in-third-quarter-production

SINGAPORE - US energy giant ExxonMobil has begun production at a new plant in Singapore to convert heavy residue that is left after refining of crude oil into higher-value lubricant base stocks and lower-sulphur fuels.

The plant’s start-up marks the completion of the multibillion-dollar Singapore Resid Upgrade Project announced in 2019. The project was originally scheduled to be completed in 2023 but was delayed by the Covid-19 pandemic, which affected many large projects here.

ExxonMobil said the new plant on Jurong Island will increase its Singapore base stocks production capacity by 20,000 barrels per day (bpd). The higher production will include up to 6,000 bpd of a new-to-industry lubricant base stock for engine oils and greases used in commercial vehicles and industrial sectors.

The new plant will also enable the refining complex to increase production of ultra-low sulphur diesel and products that can also be used for lorries, construction vehicles and power generation turbines.

ExxonMobil’s Singapore refinery produces fuels and base stocks for industrial and automotive lubricants, and aromatics that are marketed within Singapore and exported to countries across the Asia-Pacific region.

The company said the plant, which uses a first-of-its-kind technology, is a strategic investment in Singapore and represents ExxonMobil’s ongoing efforts to transform its manufacturing assets to better meet the demand for high-quality fuels.

Ms Geraldine Chin, chairwoman and managing director of ExxonMobil Asia Pacific, said: “No other company in the world can do what we’ve done in Singapore.”

She added: “We will deliver innovative products to the market by deploying our proprietary technology and expertise. We’re proud of the teams who helped make this possible.”

Experts believe the high-viscosity lubricant market is poised for significant growth worldwide, driven by increasing demand in the automotive and industrial sectors for enhanced equipment efficiency, durability, and performance under extreme conditions.

Asia-Pacific is a leading region where demand for these lubricants is rising amid industrial expansion, technological advancements, and a growing emphasis on environmental regulations that promote the use of high-performance, climate-friendly lubricants.

ExxonMobil is one of Singapore’s oldest and largest investors, with over $30 billion in fixed-asset investments to date. It employs about 3,500 people here, and its operations create business for about 2,000 other firms – mostly small and medium-sized enterprises. Its regional teams that trade oil and liquefied natural gas, and work on low-carbon solutions, are also based in Singapore.

https://www.straitstimes.com/business/companies-markets/exxonmobil-starts-new-plant-in-singapore-to-produce-lubricants-and-cleaner-fuels

The Federal Aviation Administration (FAA) has stated that no decisions have been made about removing the 38 aircraft per month production cap on Boeing’s best-selling 737 MAX family aircraft, which has been in place since early 2024.

https://www.aerotime.aero/articles/faa-boeing-737-max-cap-lift

What is the implication for ExxonMobil stock and our Upstream Cash Flow?

Story by Богуслав Романенко

Exporters are set to decide on Sept. 7 to begin unwinding a second tranche of production cuts totaling approximately 1.65 million barrels per day (1.6% of global demand), over a year ahead of the original schedule.

OPEC+, which controls about half of global oil production, has significantly shifted its policy since April 2025, moving away from years of output reductions.

https://www.msn.com/en-us/money/markets/opec-to-boost-oil-output-by-1-65-million-barrels-daily

It’s been like 2 years already. Delay delay delay. What the fu-k are you people doing all day?