Exxon to invest $190 billion over next 5 years on new resource opportunities
HOUSTON -- ExxonMobil plans to invest about $190 billion over the next five years on new exploration and development opportunities as energy demand continues to grow.
"An unprecedented level of investment is needed to develop new energy technologies to expand supply of traditional fuels and advance new energy sources," Chairman and Chief Executive Rex W. Tillerson said.
The world's largest publicly traded oil company said it plans to more than double its exploration acreage in a range of proven and emerging locations, such as Russia, that will feed its inventory in the coming years.
Production of crude oil and other liquids is expected to increase an average of 4% a year between 2013 and 2017 as Exxon starts production at 28 major oil and gas projects, 24 of which are liquids or liquids-linked projects.
The company also said 22 major projects will start production over the next three years, including an expansion of the Kearl oil sands project in Alberta, Canada, and a liquefied natural gas export project in Papua New Guinea.
The company also said it expects major project start-ups to deliver 1 MMboe over the next five years.
Exxon has been criticized about its 2010 purchase of XTO Energy, which made it the largest natural gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.
The company said last month it added back in new reserves about 115% of the oil and gas it produced in 2012, with the majority of the new reserves coming from oil-rich assets in North America.
Exxon also said it added proven reserves totaling 1.8 Bboe, of which 1.4 billion Bboe consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural gas business.
Shares were flat at $89.61 in early trade.
Dow Jones Newswires