Exxon: Longer Laterals, Cube Well Design Lowering Permian Costs

Hart Energy12-11

Exxon Mobil will boost spending later this decade as the U.S. supermajor looks to grow global production by 18%. Spring, Texas-based Exxon plans to invest $28 billion to $33 billion per year from 2026...

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That’s up from about $28 billion budgeted for 2025, the company told investors during a Dec. 11 corporate update.Exxon plans to grow global oil and gas production from 4.7 MMboe/d in 2025 to 5.4 MMboe/d in 2030.Around 70% of the spending will be directed into Exxon’s top projects: the Permian Basin, Guyana and LNG developments.“Through 2030, we plan to deploy about $140 billion to major projects and the Permian Basin development program,” said Exxon CEO Darren Woods.Exxon also aims to drive higher value from its Permian asset through multi-bench co-development, or “cube” development.Co-developing cube projects has increased net present value  by 20% compared to developing a single “best” bench, Exxon said.Enhanced cube design allows Exxon to keep recovery flat with 20% fewer ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0889566641.SGD":"FTSF - Templeton Shariah Global Equity A Acc SGD","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU2430703095.HKD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (HKD) INC","BK4201":"综合性石油与天然气企业","LU0792757196.USD":"TEMPLETON SHARIAH GLOBAL EQUITY FUND \"A\" (USD) ACC","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","BK4516":"特朗普概念","LU2430703178.SGD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (SGDHDG) INC","BK4144":"石油与天然气的储存和运输","BK4592":"伊斯兰概念","BK4570":"地缘局势概念股","CVX":"雪佛龙","LU0345781412.USD":"NINETY ONE GSF GLOBAL NATURAL RESOURCES \"A\" (USD) INC","LU2430703251.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (USD) INC","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","XOM":"埃克森美孚","NFE":"New Fortress Energy LLC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU1267930813.SGD":"FRANKLIN TEMPLETON SHARIAH GLOBAL EQUITY \"AS\" (SGD) ACC","LU1582987324.SGD":"M&G (LUX) INCOME ALLOCATION \"A-H\" (SGDHDG) ACC","LU1582986433.USD":"M&G (LUX) INCOME ALLOCATION \"A-H\" (USDHDG) INC","NPV":"弗吉尼亚纽文市保","SG9999014559.SGD":"United Income Focus Trust Dis SGD","LU2347655156.SGD":"JPMorgan Investment Funds - Global Income A (icdiv) SGD-H","LU1066051498.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (USD) INC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4550":"红杉资本持仓","LU1066053197.SGD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM3\" (SGDHDG) INC","LU0683600562.USD":"AB SELECT US EQUITY \"A\" (USD) ACC","BK4138":"石油与天然气的炼制和营销","LU0654597011.USD":"BGF NATURAL RESOURCES \"A4G\" (USD) INC","LU0266512127.USD":"摩根大通环球自然资源 A(acc)","LU1150488135.SGD":"First Eagle Amundi Income Builder AHS-MD SGD-H","LU0203347892.USD":"SCHRODER ISF QEP GLOBAL ACTIVE VALLUE \"A\" (USD)  INC AV","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","LU2505996509.AUD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (AUDHDG) INC","SG9999015358.SGD":"United Income Focus Trust Dis SGD-H","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","LU0787776722.HKD":"AB SELECT US EQUITY PORTFOLIO \"A\" (HKD) ACC","SG9999015341.SGD":"United Income Focus Trust Acc SGD-H","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0149725797.USD":"汇丰美国股市经济规模基金","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","LU0122376428.USD":"贝莱德世界能源基金A2","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","LU0203345920.USD":"SCHRODER ISF QEP GLB ACT. VL \"A\" (USD) ACC","SG9999014542.SGD":"United Income Focus Trust Acc SGD","LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H"},"translate_title":"埃克森美孚：更长的支管、立方体井设计降低了二叠纪成本","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XOM":1,"NPV":1,"NFE":1,"CVX":0.9},"content_text":"Exxon Mobil will boost spending later this decade as the U.S. supermajor looks to grow global production by 18%.\nSpring, Texas-based Exxon plans to invest $28 billion to $33 billion per year from 2026 through 2030. That’s up from about $28 billion budgeted for 2025, the company told investors during a Dec. 11 corporate update.\nExxon plans to grow global oil and gas production from 4.7 MMboe/d in 2025 to 5.4 MMboe/d in 2030.\nAround 70% of the spending will be directed into Exxon’s top projects: the Permian Basin, Guyana and LNG developments.\n“Through 2030, we plan to deploy about $140 billion to major projects and the Permian Basin development program,” said Exxon CEO Darren Woods.\nPermian M&A pays off\nExxon is seeing better-than-expected efficiencies in the Permian Basin after closing a transformational $60 billion acquisition of Pioneer Natural Resources.\nExxon expects to see over $3 billion in annual synergy cost savings following the acquisition and integration of Pioneer, a more than 50% increase over previous guidance.\nThe company aims to roughly double Permian production to 2.3 MMboe/d by 2030.\n\n\n\n  Exxon’s acquisition of Pioneer Natural Resources delivered a huge asset in the core of the Midland Basin. \n  (Source: Exxon investor presentation)\n\n\nExxon is seeing benefits from drilling longer Permian laterals—the company has already drilled among the longest horizontal wells in the basin, including 4-mile laterals in the New Mexico Delaware Basin.\nExxon anticipates that its average Delaware lateral lengths will grow from around 10,000 ft in 2022 to around 14,000 ft in the back half of the decade.\nThe company has discussed drilling longer Midland Basin wells after integrating Pioneer’s massive land position. Exxon plans to spud the first-ever 20,000-ft wells on Pioneer’s Midland asset this quarter.\nExxon also aims to drive higher value from its Permian asset through multi-bench co-development, or “cube” development.\nThe company has worked for several years to optimize spacing for multi-zone design, helping to drive higher capital efficiency.\nCo-developing cube projects has increased net present value (NPV) by 20% compared to developing a single “best” bench, Exxon said.\nBy leveraging updated spacing patterns, longer laterals and a proprietary lightweight proppant derived from refinery coke, Exxon aims to improve Permian NPV by an additional 15%.\nExxon said its proprietary proppant technology has improved resource recovery by up to 15% so far. The technology, which leverages the company’s large North American refining footprint, has opened a greater fracture area compared to sand.\nThe company is planning to use the proprietary proppant for more than 200 Permian wells in the next year.\nAll these factors, in aggregate, are driving cost savings on Exxon’s legacy Permian asset and its new Pioneer Midland asset.\nEnhanced cube design allows Exxon to keep recovery flat with 20% fewer wells. Longer laterals reduce surface and drilling costs by at least 25%. Greater Permian scale is driving other efficiencies throughout the drilling and completion process.\n\nRELATED\nQ&A: Exxon Mobil Pioneers the Permian and Guyana\n\nGas and power\nWith four LNG projects under development, Exxon plans to have offtake agreements in place for 40 million tonnes per annum (mtpa) by 2030.\nExxon is currently developing Golden Pass LNG on the Texas Gulf Coast. Golden Pass will add 16 mtpa of capacity after starting up late in 2025.\nWorking with partner QatarEnergy, Exxon is co-developing the Qatar North Field East (NFE) expansion project—also expected to come online in late 2025. Exxon holds a 25% interest in the joint venture.\nExxon is also targeting final investment decisions for LNG projects in Papua New Guinea (+6 Mtpa) and Mozambique (+18 Mtpa) in 2026.\nOutside of gas exports, Exxon sees an opportunity to produce gas-fired power generation for data centers.\nThe company is reportedly designing a natural gas-fired power plant built to directly supply electricity to data centers. Exxon also plans to develop the project with carbon capture, utilization and storage technologies to capture over 90% of the facility’s CO2 emissions.\nThe “fully-islanded” power generation project would be developed behind the meter, limiting reliance on an already strained power grid.\nExxon isn’t alone in its aspirations to feed electricity to power-hungry data centers. Chevron recently discussed developing behind-the-meter natural gas power plants for data centers, according to analysts at Jefferies.\nPlans are in early stages, but Chevron is engaged with several potential partners, Jefferies analyst Julien Dumoulin-Smith wrote in a Dec. 10 report.\n\nRELATED\nNatGas Pundits Pitch Fossil Fuel Reliability to Meet Needs of Big Tech\n\nChevron pulls back\nAs Exxon looks to boost spending, rival Chevron is doing the opposite.\nChevron is budgeting $15 billion in 2025 capex, a $2 billion reduction year-over-year, the company announced Dec. 5.\n“The 2025 capital budget along with our announced structural cost reductions demonstrate our commitment to cost and capital discipline,” Chevron CEO Mike Wirth said.\nUpstream spending will be about $13 billion, roughly two-thirds of which will be directed into Chevron’s U.S. portfolio.\nChevron plans to spend between $4.5 billion and $5 billion in the Permian next year, lowering production growth in favor of driving free cash flow.\nThe remaining U.S. spending will be invested in the Gulf of Mexico (GoM) and Colorado’s Denver-Julesburg Basin.\nChevron’s deepwater GoM projects continue to ramp up and are expected to contribute offshore production of 300,000 boe/d in 2026.\nThe deepwater Anchor project, which taps into an ultra-high-pressure, high-temperature GoM reservoir, reported first oil in August.\nAnchor was the first production from any of the region’s super high-pressure formations at 20,000 lb psi. Industry experts say the breakthrough will unlock new areas of the GoM that were previously unreachable with older technology.\n\nRELATED\nWhat Chevron’s Anchor Breakthrough Means for the GoM’s Future","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490818110"}