Wednesday, December 7, 2022

Exxon to spend more than US$100 billion through 2027 to meet world’s energy needs

Must Read

OilNOW
OilNOW is an online-based Information and Resource Centre

ExxonMobil expects to invest over US$20 billion annually to help meet the world’s growing energy needs through 2027. That’s more than US$100 billion in the next five years. This will amount somewhere between US$21 billion and US$24 billion this year, then between US$20 billion and US$25 billion every other year through 2027.

It sees oil as necessary, as it meets more than 30% of global energy demand and 90% of transportation needs, being “virtually indispensable” for powering larger vehicles such as trucks, planes, and ships.

“Long-term, we have the portfolio flexibility necessary to pace our investments consistent with advancements in technology, markets and supportive policy,” Darren Woods, the company’s Chairman and Chief Executive Officer, has said.

With Russia’s invasion of Ukraine, the supply constraints which have resulted, and underinvestment in oil during the pandemic, the need for oil is even more pronounced.

As its operations in Guyana expand, Exxon says the South American nation’s supply is critical to the global market. Production offshore Guyana in the Exxon-operated Stabroek Block recently reached capacity at 360,000 barrels of oil per day, from the Liza Phases 1 and 2 projects. This supply is expected to rise to one million bpd by 2027, with potential for an even bigger increase by the end of the decade.

Exxon’s significant investments in Guyana are contributing to a windfall, allowing the country to bring in the revenue it needs to fuel its development, while providing low-emission barrels for the world.

“The strengths that have enabled our success in Guyana – our scale, advanced technologies, integration, operations excellence and highly skilled people – also position us to lead in the energy transition,” Exxon said in a recent Energy Factor post.

The company plans to spend US$15 billion through 2027 to reduce the greenhouse gas emissions its operations are responsible for – some to be spent in Guyana.

Already, its Guyana operations demonstrate greenhouse gas emissions intensity at 30% below the average of its upstream portfolio. Meanwhile, the major is still looking at ways to reduce its Guyana emissions, exploring the potential for carbon capture and storage (CCS) and renewable energy ventures.

The company plans to explore a lot more in Guyana, so it can deliver low-carbon barrels to the world. 60 exploration wells are planned for the next six years, with the potential to more than double Guyana’s 11-billion-barrel resource estimate.

With its aggressive exploration and development plans for Guyana, Exxon’s Stabroek, Canje and Kaieteur Blocks will account for a significant portion of the tens of billions of dollars it will invest this decade.

spot_img

Latest News

Guyana oil sector on track for over 100% growth, 100 million barrels output in 2022

Guyana’s oil economy is expected to grow in 2022, by far more than 100% over the prior year. First...

More Articles Like This

spot_img